Nagacorp right now is one of the more dangerous casino stocks in the world to invest in. It’s especially dangerous as opposed to others because the company is specifically very confident it will sail through the current COVID-19 depression that it is throwing caution to the wind.

The last time we covered this stock here was in October 2015. Since then, and despite a 36% fall from pre-COVID-19 highs, the stock is up an amazing 70%. If you have any profits, I’d suggest locking them in now. I have always been wary of Nagacorp and companies with similar business models. In my last coverage I was cautiously optimistic and said that investors considering investing in this casino should do so only as an income investment with a time horizon of 2020. Well, 2020 is here, the gains are huge, and now it’s time to move on. I am no longer cautiously optimistic here.

This is a company that has the potential to fall quickly. I do not know if it will for sure, but the risk is too big and I don’t trust the optimism in its recent press releases that essentially say that everything will be just fine.

Nagacorp is very reliant on its government monopoly, so much so that management believes COVID-19 will do very little to harm operations even short term. Nagacorp believes it can be as spendthrift as it wants to be because the thinking at the highest levels is that no matter what it does and no matter what happens, it can rely on its monopoly to bail it out of any trouble. This can make its business decisions especially careless when real problems do show up.