Off to Seeking Alpha, this site is really not cutting the mustard and needs some of the same mouthwash Dirty Harry described…
Wow what's going on here? Just checked in to get some insight on the two day water fall on the NNN shares and all I find is a stream of Spam and expletives. Yahoo with very poor policing to not allow legitimate discussion and insights to be expressed. Maybe some one will explain this loser's obsessions with NNN and why they think the stock is getting a bit hammered?
I pointed out these bonds weeks ago as being perceived by the markets as something that will eventually be restructured with hair cuts. So CZRs does a huge share dilution that in my opinion those the rights offerings was not as aggressively subscribed to as might have been anticipated given the near 18 point discount to the then share prices etc., and you think this cash raised is not going to be used towards management's incentivizations before this company collapses on this debt that they absolutely should redeem but they will not have enough cash to redeem a complete issuance and the tenders are going to be well below par da--- dah... Hair cuts... You see the dilutions hauling down the share price but the harvesting of the shareholders to satisfy debt holders who are first in line ahead of shareholders is just beginning for this stock.
The Mass gaming commission has decided CZR's has too much leveraged debt to be deemed credit worthy enough to participate in the East Boston Casino project expected to be built in 2014. Are you not following the price of this company's bond issuances priced as low as 59 cents on the dollar and with 10% coupons that for so long as they do get paid yield 30%? The bond market is saying that within a year or two the bond debt will need to be restructured and then who always takes the bigger haircut BEFORE the bond holders? Now that CZR's has been EYE DEED by one state's public commission as an emperor with no clothes other states are going to have egg on their face if they allow CZRs to expand in their state and then stiff the principals of financing something like a new casino. Humpty Dumpty is falling off the wall. The Ponzi scheme of leveraging even more debt & share dilutions is unravelling. The company is not creditworthy so where do they get refis to pay near term maturing debt & lease obligations that are due? From the people they owe the money too, of course with a haircut.
The bond market is still calling this unsalvageable. What does it mean when the 12.75%s are not tendered for / redeemed along with this other debt that CZR's is making good on to the Wall Street insiders by floating out massive new debt ? Well the market is seeing massive share dilutions & eventual defaults on the debt that is most broadly held by the retail and junk bond fund managers. It seems the market is saying that these debt filings are just increasing UP the leverage of $24 billion in debt, off book liabilities, and lease obligations against whether this company can hold on to a $2 billion market cap. THE WOSP will be gone sooner than later in a panic to sustain the unsustainable and then there will be even less value in this junker.
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
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.
What about the losses in the previous 2-3 trading days? Down another 6% this morning. Has no one heard of the lower Federal court's recent ruling that the pre-existing gaming Federal statutes do not allow for states to expand into SPORTS WAGERING as goes on as a monopoly in VEgas. Not so encouraging short term or on legal costs to eventually get NJ Governor Christie's plans to expand the Atlantic City gambling franchises' ability to get the huge windfalls on sports wagering?
Sentiment: Strong Sell
With the Cusip #12678RAA5 CAESARS ENT OPER CO 4/15/18s getting a bid of $26 are you sure you are not being a bit too sanguine about the suitability of this stock for a short?
Sentiment: Strong Sell