Is that why Vegas had a record number of visitors just last year? You are the dumbest poster on this board!
Yesterday MGM plunged 8%; so far today its recovered about half of yesterdays losses. Investors feel that selling off their Reno properties was a mistake. They are now more dependent on Asia than they were two days ago. Their strength is in the U.S. China will always be a gamble. Selling Reno was a bad move.
Sorry Buckeye -- I have to disagree. In the scheme of things the sale of the Reno properties in insignificant. 72 million as opposed to Billions is less than 1/10 of 1%. I can't image that this would cause MGM to be more dependent on China.
Instead I see the 8% as totally run by speculative traders who are trading in options. Watch to see if this goes back more than 4-5% today. All the wild swings are day-traders going in and out trying to make a quick buck --which they can do.
For me - I want to wait and see what the Aug earning report brings. With the fight revenue, increase Strip revenue and look to see a nice earnings release in Aug which should help support the fact that this is really a $22-24 stock.
Yes, I agree. The Fountainblue would be a great rooming house if Carl Ichan would listen to me.
Do not expect a big bump in gaming revenue because of the fight. Here are the May gaming numbers and the Vegas Strip actually did worse than the rest of the state. Maybe the Strip will see a big boost in hotel revenue but the big gaming revenue never materialized.
The article is on Bloomberg -- I posted it on the MPEL board but yhoo won't let me repaste it here.
MPEL is the best positioned company on Cotai... but they are all oversold down here-- even MGM and WYNN that don't have any tables to shift to the new properties. Even at that, policy is shifting back to supportive of Macau now (eased visa restrictions and as of Friday less severe commentary on the bs smoking "ban")... so table allocations will likely be better than awful for WYNN and MGM next year even though they are off the mark on Beijing's "diversification" directives being nailed by LVS (convention/MICE facilities even though no conventions really happen there) and MPEL (HODW at COD) and Studio City, the latter opening within a few months at the outside. As the CEO has quipped, Studio City will have more "diversification and entertainment facilities than the rest of Macau combined."
MPEL's COD manila is now open and ramping as the two new VIP operators are up and running as of this quarter... If ceo lawrence Ho of the dynasty family there is correct in his assessment of Manila's potential by 2016, soon COD Manila will be generating more GGR and adj ebitda than every MGM property except for the Cotai operation (~35% of MGM's total adj ebitda) and Bellagio.
Notice Vegas GGR is actually down ytd? Not just for MGM... the entire strip. So much for the "Vegas resurgence" the dippy analysts were calling for a year ago and right up through March. Table game GR "surged" from April-July 2014 before falling off a cliff to negative 12% for August and has remained weak since.
The street has finally figured it out and taken WYNN and MGM down over the last two months to reflect these dynamics, but as noted a few weeks ago, even these two names are way oversold down here.
For three weeks MGM has traded between about 17.50 and 19. Today, it jumped up to 19 and then immediately retreated to 18.60. And this happened while Morgan Stanley downgraded MGM China. At the present, MGM appears to be nothing more than a vehicle for day traders to buy at the lower range and sell at he higher range.