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Asia Entertainment & Resources Message Board

  • drjackcar drjackcar Feb 13, 2013 4:38 PM Flag

    regarding questions about AERL's conservative credit stance

    Go back and listen to the Q1 conf. call from last year. It was held in May, just after the time when RCT began coming in below expectations. They spoke of maintaining a conservative policy "as they have in the past" when they felt conditions called for it.

    There is no question they have been more conservative than other junkets. Too conservative IMO. While they have never explained why to my satisfaction the word has gotten out thru Bain. He has delineated them in his notes (available on AERL's website) so I'll not repeat them.

    It is only natural to question whether their credit policy, justified or not, lies at the heart of the reduced roll or "something is wrong." Just be sure the opinion you arrive at is an informed one, not based on rumor and innuendo.

    Management has indicated in correspondences to me that credit will be loosened when they feel the time is appropriate. But at this point I would say the comments by the Jefferies analyst gives some credence to their conservatism and performance over the last 6 months.

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    • Noticed their receivables were high....this is probably the driving force in not extending more liberal credit. It's kind of a red flag....they count it as earned when they bill, but then it goes into a/r...maybe they are having difficulty in collecting in these tuff times.....looks like to me that the management is just being prudent....


      Do you guys realize they have added an entire casino (COD) with the purchase of another juket, and INSTEAD OF INCREASING RCT AFTER THAT.... IT ACTUALLY DECLINED!!!


      TOTAL BS! They shut down over 20 for almost a month!

    • DJC- You do a great job posting and I respect your due diligence. Just wondering if the thought of extreme competition and a lack of high VIP players actually is the real RCT problem? Listen to Mr. Leven and Mr. Wynn. They are straight shooters... they say its not a matter of credit its a matter of getting the player in. The credit is an overplayed excuse IMO.


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