Here's why Crown Resorts Ltd is climbing in 2015

Crown Resorts Ltd (ASX:CWN) gains more than 10% in just one month. Two new casinos opening this year could change its fortunes.

a woman

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Just a month into 2015 and the S&P/ASX 200 Index (ASX: XJO) (Index: ^XJO) has taken off, setting a new multi-year high at 5,707.  The decision by the RBA to cut interest rates to 0.25% pushed the index to its highest since May 2008.

It may not be the last cut in the near future, but it is getting the ball rolling. Remember – well before the economic situation is rosy again, early investors will have positioned themselves in the winning stocks. They know quality companies rebound the strongest, so they buy in now and let the next wave of slower investors push share prices up.

I am already seeing this movement in one stock in particular.

Casino and integrated resort operator Crown Resorts Ltd (ASX: CWN) was in a downward funk almost all of 2014. James Packer's company went through a number of setbacks- weak Australian casino visitor traffic, as well as its City of Dreams casino in Macau experiencing a big drop in VIP player revenue brought on by Chinese government restrictions on money transfers in the Asian gambling destination.city of dreams pic

In the past month, though, Crown stock is up 11%. The casino operator has a new City of Dreams integrated resort just opening in Manila and soon its new gaming and entertainment venue in Macau called Studio City will be open for business later in 2015.

studio city picIf Australian consumers are stimulated by new rate cuts, Crown's Melbourne and Perth casinos may start to see more business in the next 12 months at about the time the new Macau and Manila casinos are both fully operating. Improving revenues could drive Crown's stock from later 2015 onward. Add Crown to your watchlist, but be ready to move if the stock surges.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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