IKGH management team was ill prepared to run a publicly traded company. The mistakes they made should be used in a college course on what NOT to do.
Add in the DEVASTATING acquisitions, at the worst possible time, and you are left with a company that the stock market rightly values as if it will only continue to lose money and make bad decisions.
There is a reason this stock trades below it's cash, it's because even in the boom times of Macau VIP, IKGH couldn't capitalize.
The icing on the cake, is this company still owes $26 million dollars for acquisitions that have almost destroyed the company.
There are countless reasons why this company is considered uninvestible by funds and analysts.
This stock will soon be de-listed, I set a price target of $1.00 by the year 2015, several years ago when this was trading at $7.00.
My new price target is .40 cents.
lol, brinerbriner is disgraced poster martin campos. He lost 50% in 3 months under that alias, started posting under brinerbriner, and stock tanked another 50% since.
So who has more credibility? A disgraced poster, or a major brokerage firm?
This guy will also tell you david bain knows what he's talking about! That's the joke of the century!
This illustrates the incompetence of IKGH management. Wasting millions to list in the US where no one can or wants to invest in their company, only to turn around and waste more money then it made last year to try and list in China.
This management team has no business operating a publicly traded company. The list of devastating destruction of shareholder value should be used by econ professors on what not to do.
Lets buy back millions of shares around $5.00, only to then resell 60 million more shares at $3.00 a few months later. Buy high sell low? Only at IKGH!
Not sure how this will impact AWLCF, but it will be interesting to see how the deal plays out.
Recent closures of some large junket operators indicate the systemic weakness of the sub-junket business model, one which is shared among the larger junkets in Macau. As such, we expect to see further room closures among larger junket operators this year, and our junket watch list assesses the impact for the operators we cover. As a result, we now forecast the VIP segment’s GGR to fall by 30% YoY for 2015 (previously -19% YoY).
We beg to differ with the common perception that the latest junket closures should weed out weaker players and spur healthy VIP segment consolidation, as: 1) we have not seen junket capital shifting from smaller to larger junkets, 2) surviving smaller junkets have adopted a cash-only model with low costs, little credit risk, and no incentive to consolidate, and 3) larger junkets still face a deteriorating climate and plan further cuts in VIP room numbers.
Whats worse.... Losing millions in bad debts, or paying $26 million per year in "bonus payouts" for companies that will never generate that much in revenue in 50 years?
So we all know IKGH management made the worst move it could have made when it agreed to the most outrageous compensation package for two junkets that would be out of business right now!
Business is so bad, top junkets are just shutting down. IKGH still owes another $26 Million for it's destructive acquisition, that will essentially ruin the company.
The David Group, a top-10 junket with 3-5% of total VIP rolls in Macau, is closing its VIP rooms, raising the question of whether this is an isolated event or structurally, junkets are leaving Macau. In December, gross gaming revenue fell 30% from a year ago. January is not looking much better either.
Nomura Securities‘ analysts Stella Xing, Wendy Liu and Harry C. Curtis reported:
Yesterday, according to our industry information provider MGG, the David Group, one of Macau’s established junkets, is reported to be in the process of shutting down its VIP rooms in Macau. This industry chatter was confirmed by sources of MGG.
Our channel checks yesterday with the David Group’s VIP receptionists found that they had no idea whether the group was to shut down. In addition, when asked, they said no minimum fund is required to open an account for its VIP rooms, which is new to us because David’s VIP rooms had previously required at least HK$100,000 to open an account.
So when you were posting under your other aliases, I advised you to look at what junkets trade for in the HK market. You are correct that Asians are familiar with this set up, and all the junkets there trade for pennies.
Everyone on this board keeps assuming the Asians are the stupid ones that will pay some sort of premium for this garbage, when in fact, it's the exact opposite.
Asians have historically valued junkets at 2-4 P/E ratio. In fact, look at what the overall chinese market values their equities at. Almost half that of US markets.
This is why those still holding this stock anticipating the HK listing helping them, will get burned yet again.
The HK markets will be used to dump millions of shares, dilluting this stock down to approx .20 cents per share.
You have to laugh at the ego on this guy. Shows up, losses 50% all while spoon feeding the board David Bain BS numbers and projections, gets laughed off the board, then re-emerges with a new alias, playing the same game, only to become disgraced quickly again.
If you haven't figured it out yet, IKGH was garbage when Macau was on fire, and now that it has cooled, I can't think of any reason to own this stock.
You have been fed lies that the Chinese will gobble these shares up and pay premiums. Well, as I said all along, the Chinese can buy this stock on the US markets if they want it, so why will this change anything?
In fact, MPEL shattered David Bains last hope by announcing it's DELISTING in HK, because of the costs and lack of fund raising. Plus junkets have traded in HK all along, and guess what, they have the identical P/E of IKGH here in the US!
Continue to safely short every share you can, I predicted $1.00 per share before the VIP collapse, now that that has happened, I think by 2016 this will be getting the US delisting notice.
UH OH.... IKGH could lose the rooms they ruined the company to purchase!!!!
Or would this be good news? No $36 million bonus payment for this great rct they are putting up???
" I could see $5 based on 10x EPS,"
This is why inexperienced investors are going to continue to get crushed!
Take a look at what a solid chinese company trades for on HK. Multiples are no where near that of the US. Then factor in that several junkets already trade in HK, and the p/e's are known for junkets. It's 2-4X's earnings.
Then... Take a look at MPEL DELISTING in HK due to high costs and no need, since chinese investors can trade on nasdaq!!!!
Why would a company spend more money then it makes in a year, trying to list on a market that won't give it squat?
The answers simple, to dump 100 million shares!
They don't have the cash to buyback shares. They certainly shouldn't be paying a dividend! They are taking cash from their cage to make the outrageous bonus payments too! It can't get much worse this this... Short every share you can!
Brinerbriner is version 3.0 of a disgraced poster.
He has had to change his alias so many times, because each one losses 50% in 6 months, he gets embarrassed and tries to start with a clean slate.
Don't fall for his spins. Short every share you possibly can!
I'm still trying to get a handle on how horrible the business has become.
They don't even make enough money to pay the fees required to list in Hong Kong, they are losing so much money, they can't afford to do a stock buy back either.
LOL, this just speaks to the desperation of IKGH!
They spend more money then they make in a year, trying to get listed, I have always said there is a good chance they get denied, which after the initial shock, would be the best thing for shareholders!
Something isn't right here....
Melco Crown Entertainment says its Board approved a delisting from the Hong Kong exchange due to the high cost of maintaining a listing and lack of use for fund raising.
After the delisting, shareholders can either hold the shares, which will no longer be traded on the Hong Kong Exchange, or trade them for ADSs on the Nasdaq.
The delisting would need shareholder approval.
“Maintaining the listing of the shares on the Stock Exchange requires additional ongoing
regulatory compliance obligations and such requirements involve significant additional costs and administrative burden,” the company said in a regulatory filing.
It will retain its primary listing on the Nasdaq. The company has been listed in Hong Kong since December 2011.
Who is trying to spin this as good news for IKGH?????
This is just another, in a series of disasters for the VIP market. They are going to have to revise 2015 down further now.
I know someone here was unable to short, Fidelity has plenty available.