For the street, revenues are always the key. Its the sign of growing vs shrinking. When the merger was called off that set things back, but ultimately was better for the company long term. The real problems for me began with a very lacluster conf call with Eric not sounding optimistic for the near future. Revs have now been low for the last two months which doesn't bode well for the quarter. REVENUES are the key to all this. Because Eric has been artificially pumping up Vegas revenues, when he turned off the marketing money stream, revenues for the whole company got hit. Perhaps he should have kept the marketing dollars flowing as long as vegas wasnt in the red. Revs would never have dipped so aggressively. Meanwhile, it is probably a good time to be loading up, because the revenue pump will happen again and the stock price will jump. PUMP and JUMP
One concern I have is the increased marketing (taxi) costs in LV. Once it starts escalating, I hope it does not get out of hand in trying to compete with other clubs. I think that these costs can more than wipe-out any increase in sales.
There is a signed agreement (3 or 4 major clubs) and they send people around to check each others clubs to keep things honest! There is also a substantial penalty to any party found to have breached the deal.