“Investing in the Future Means Investing in Gambling Stocks”

Gambling stocks are hot these days, particularly in Canada, and predictions are that they’re only going to get hotter. If you’re looking to invest your money in the stock market, you may want to consider three gambling stocks recommended by Wellington West analyst Robert Winslow.

Great Canadian Gaming Corporation, a company that runs casinos in British Columbia and is currently trading on the TSX (GCD/TSX) with a $60 target price, is one of three gambling stocks singled out by Robert Winslow, an analyst with Wellington West. Pointing to their recent purchase of an Ontario casino called Georgian Downs, and their plans to significantly expand their racetrack business, Winslow says Great Canadian Gaming Corporation is a hot property. He upped his 2005 estimate from $1.88 to $1.93, and his 2006 estimate from $2.62 to $2.70.

Chartwell Technology Inc, an Internet gaming software company that currently trades on the TSX with a $12 target price (CWH/TSX), is also a very strong buy. With England having recently passed the Gambling Bill, Winslow sees Chartwell as a company that will directly benefit from this so-called seal of approval. Anything that gives legitimacy to the online gambling industry also gives legitimacy to the various companies connected to it, and the Gambling Bill does just that, by regulating safety standards and security. Winslow upped his target price for Chartwell from $10.50 to $12.00.

FUN Technologies PLC, trading on the TSX with a $6 target price (FUN/TSX), is the third of the three stocks recommended by Winslow. Though it didn’t perform well in the fourth quarter, it is thought that the target price could reach as high as $8.00, given the right acquisition activity.

To illustrate just how hot these online stocks are, consider this: A year ago, investing $10,000 in Canadian land-based gambling stocks would have earned approximately $23,000 (a 127% return), while investing the same $10,000 in e-gaming stocks would have earned $35,529 (a 255% return). Clearly, online gambling stocks are the way to go.