Well now you have your explanation. The Wall St manipulators used "the News" to pump up this $2 billion market cap stock with OVER $24 billion in leveraged debt, lease obligations and other off balance sheet liabilities. It is an as old as Wall Street pump and dump. The news that NJ would legalize internet online gambling, !AND! compete with London & Vegas with expansion into sports gambling in Atlantic City used as the pump, for the pump and dump. Just last week a lower Federal appellate court ruled that the intentions of NJ to expand into Sports betting were illegal under existing Federal Statutes that grandfathered in Vegas. Now some of the massive underfunded liabilities coming to light on a huge float of and dilution to the common stock. But some of the bond debt +12%s, still bid if there are any bids at all of actual volumes at $62 on $100 par. So the bond market has called this excrement, all the way up on the stock rally from that last coupon paid on the 15th of April on these 12.75%s of 4/15/18 and early call option on 4/'15. So there is your explanation on the balance sheet it was always "sheet". But there was noise and news on a possible long term change for it's business operations that are now collapsing even as the leverage of the massive debt is reconciled as actually being of some substance. Classic Wall Street pump and dump manipulation.
Soros and Paulsen.
Look at hlf. Ackman is probably right that herbalife is a big pyramid scheme but as long as the big money (Icahn) stays on the long side a stock price can run opposite to a companies fundamentals for a while.
CZR is a joke. Twenty plus billion in debt without Macau exposure. Its trading as though the spin off is already a success. I don't like CZR, but Soros and Paulsen and they can keep the light on for a long time.
I am long MGM and WYNN. A long or short investment in CZR is speculation. Internet gaming will be highly competitive. There is a lot of money to be made in internet gaming ,but whose to say that Adelson, Wynn, BYD, ZYNGA or some other thirty companies may come out on top. While other gaming companies have survived or even thrived during the last 5 years. CZR management has put this company in a major hole. Why would I trust them to get this right now. They can spin it, flip it, roll it around it is still a dog!
Vegas is slammed. They are breaking records in amount of visitors. CZR still losing boat loads of money.
I am not shorting this thing yet. But I'm tempted to speculate a little.
Oh yea the WSOP franchise has enough equity to substantially offset the $24 billion of leveraged debt, LT lease obligations and other of sheet liabilities. The WSOP is not worth nothing but as a % of the liabilities of this company it is not going to offset a whole lot more than 4% of those liabilities.
Sentiment: Strong Sell
It's now at 18.50. Not even a slight pullback. Stocks just don't go from 10 to 18 for no reason, there must be a big infusion of capital coming that the public doesn't know about yet. I read they got .4 billion from selling a golf coarse in China, but that's not that much. Maybe the spin off is expected to raise a lot of capital that can be used to pay off debt?