It will only make money if a lot of things come together for it and, frankly, a lot of things are looking less hopeful. At $10 for ZERO earnings and no expected earnings without Federal online poker, this can get ugly fast. And now that they have
1) MGT lawsuit,
2) Penn lawsuit,
3) their partner BWIN being scrutized for unlawful acts before they get approval to do business in NV,
4) Massachusetts plan probably will be lost to one of 4 other companies that are profitable,
5) Funding cut off for Ho Tram casino in Viet Nam
6) Macau cracking down on junkets
7) Chinese stock market close to 2009 lows
Those are all developments in the past month.
What good news has come out since the Christmas rumor of Federal online?
And don't forget these:
Increase taxes in US- payroll, wealthy and middle class paying for Obamacare
Decreased spending by US
Rrecession will CERTAINLY OCCUR due to the above two
Next housing crash in response to new recession. Our country is not financial stable, far from it. Companies like MGM are going to feel the pain. You all have your heads in the sand. If Fed online occurs soon, you are gold. If not, you are in big trouble.
Make sure you don't fall for the same wishful thinking that they've been selling for the past two years. Next years recession which will be deep with no quick recovery will more than negate refinancing. MGM is poorly run. Look at the two year chart. You are never safe. I've shorted from $13 and as high as $16.50. I covered most at $8. I covered the last small position and went long Tuesday at close. Sold yesterday, too early as it turns out, but it could have gone the other way Justus easily. Today's news is not the news to buy if you arent in already. The refinancing is not enough to keep this substantially over $11 and many problems await Mgm
Mgm can pay off huge down the road but it is risky and totally unnecessary to buy in big now if you are a long term investor. If Mgm is going to move up substantially, it will do so over time so don't worry about missing the boat and going in Big and getting trapped should it drop like it has in the past. If you can afford to sit and wait, go in very easy now, say 25%, and then if it drops to $8 or $9 you can add in if things look good. If you swing for the fences here and go in big, things can become very uncomfortable if the price drops as many believe can happen given economic conditions.