1. Judge only gave CZR 2 weeks to come up with a new bankruptcy plan. Caesars had requested 6 months.
2. Judge is allowing creditors to fully examine Caesar's questionable prebankruptcy actions such as transferring assets out of CEOC before they filed for bankruptcy.
3. Steve Wynn in Wynn's conf call said strip business in Vegas and lousy and expects it to get worse.
4.Nevada gaming board announced March strip revenues were down over 9% from a year ago.
Not a good day for Caesars and I'll remain short.
This is a very large and complicated bankruptcy. It will take a long time to get it settled (maybe years) and in the meantime, CZR will continue to pile up losses. Earlier, you mentioned heavy call interest in some short term options but the dollar value is small. Take a look at the Jan 2016 options. Open interest in puts is huge and is almost 30 times greater than in calls. That gives more time for this bankruptcy issue to resolve itself and the big money is betting that this has much further to fall. CZR itself is warning that they may not be able to remain a going concern. If CZR is also pulled into bankruptcy, this will become a penny stock.
Can't blame some shorts for taking nice profits here but there are still plenty of shorts in this one with 14.4 days to cover. If I was a long, I would be more concerned as to why the stock price continues to fall despite the shorts taking some profits. I remain short.
I think those resort fees are a ripoff too. I don't think Station casinos charge them either. I haven't seen the Fox report but I imagine it's a class action suit. Just imagine the huge new losses that CZR would report if all those resort fees collected from former patrons had to be paid back.
In the news today, they replaced their key financial advisor with another one. Things are not going well for CZR's hopes to shed debt the way they planned. I remain short.
CZR reports another mind boggling $7 eps loss for Q4 vs analyst estimate of $1.65 loss. That makes a loss of $19.45 for the year (on top of $23 loss last year). Someone better call an ambulance or maybe it's too late already!
The only thing I'm aware of is that one of the CNBC traders commented yesterday that he bought the stock and call options after he noticed unusually high call volume in the stock options. This implies that someone who knows something that others don't is taking a leveraged position betting on the stock rising.
What wasn't said is that it could also be someone with a large long position selling calls to help hedge their position against further losses. I note that the volatility premium for puts is higher than the calls, suggesting that may well be the case here,
At any rate, earnings (Maybe I should say the report on further losses) comes out next week. CZR has been consistently losing much more than the analysts predict. We'll see but I think this will burst the balloon in this little rally. I remain short.