MGMMirage stock

[Dean Martin]

Not sure how many of you here watch or trade the casino stocks. I've been in and out of MGMMirage this last year. Luckily...out of it before they announced their recent qtr. It appears (or at least Wall Street thinks) that a slow down in Vegas is coming. I personally doubt there will be a real significant change in the Las Vegas revenues (due to all of us maniacs) unless this economy gets pushed hard to the point of recession. Anyway, I'm thinking this recent shift in revenue stats from the hotel/casino's could result in some more favorable room rates and offers than we've seen in some years. A few of the recent offers from the MGMMirage group are the lowest rates I've seen in the last 3 or 4 years. As far as the stock, I'm leary to get back into MGM stock just yet till there is more definitive direction of the trend in Vegas, but if it breaks 30.... I'll be nibbling :) Any other thoughts from traders out here? ~ Dino

[Wildcat Fan]

I own MGM, Harrahs, and Penn Gaming. My feelings that they are all down
now, but they will be going up soon. Vegas is to good to now make money on Casino stocks!!!!!!!!!!

[HurricaneMikey]

My fave stock/sailboat retirement plan has a lot to do with STN! :thumbsup: And as much as I hate being a customer there, HET stock has a been a winner for me for a few years. (Who said there was anything wrong with profiting off the ignorance of the masses???)

Of course, any natural resources/oil & gas mutual funds have returned about 50-60% over the past three years, and around 75% over the past year. Oh hell yeah. What's that sexy smell??? Nope, not Dream Angel from Victoria's Secret...it's Capitalism!

Mikey

[bnlphan]

I'm wondering how much the city project undertaking is going to affect MGM's profits..such a big endeavor could mean the downfall of the whole company if it flops? I think I'd rather invest in Brittany Spears perfume.

Brian

[HurricaneMikey]

Um...has anything flopped that MGM/Mirage has ever built on the strip? Or tanked so badly that the entire company was in jeopardy? Yeah, might as well take that money and bury it in an old mayonaisse jar in the back yard, if that's your worry.

Mikey

[Hunter]

I made a bundle on MGM MIRAGE and recently cashed out.

I'll probably get back in the game though - those guys are EXCELLENT managers, despite what they might have to do to the properties to get those results up.

Don't expect Beau Rivage to look like a Wynn property when it is rebuilt. It will look like an MGM MIRAGE property - and there IS a difference.

[Pimp_N_M]

The difference being that CityCenter will be around a 10+ Billion dollar project. That is one F-A-T junk bond. A $10,000,000,000 failure could sink Rhode Island much less a company with something like 30 billion in assets.

[HurricaneMikey]

Yeah Pimp, you're right about that. But I doubt that a huge casino/hotel/retail center sitting right between the Monte Carlo and Bellagio is gonna sit empty like Neonopolis. Although this article from last May might give pause to bond traders.

http://www.lasvegastribune.com/20050513/bizfin10.html

Mikey

[Pimp_N_M]

IMHO there is any easy way of looking at this. Yes, a 100 acre super thing will make money. But when you are trying to pay off 7 billion, because you paid too much for some other properties, and borrow ANOTHER 10 to build this mega-center It's hard to start paying things off quickly.

Kanye West had a similiar dilemma. He released a new album recently. His last one went (I believe) 5 times platinum. This time around, on his release date, he was 2.4 million albums unrecouped. In other words... Even if his album was an amazing success and sold 3 million records. He is screwed. A company the size of MGM going 17 billion in debt does not sound appetizing to me. The bonds or the stock. I'd rather buy shoes with the money.

[Dean Martin]

Lots of great thoughts guys.... appreciate the comments! As Mikey well knows from being in the "biz"... the stock "groups" of any industry will move on momentum in both directions when they go in and out of favor. IMO, w/ "Greeny" raising rates like a maniac, I think "the market" is getting nervous about companies that require discretionary spending.... which LV would obviously be 100%. I think the feed to his brain is hardening...lol I believe the casino stocks have more downside and once the new Fed quits raising rates, they'll be one of the first groups to pop. I'm looking for MGM to drop below 30...it may or may not happen but I'm patient...time will tell.

Mikey, I have never watched STN but will now :) I'm, assuming one of the benefits for you is some matching funds/stocks? BTW... a boat is in our retirement plans too! Always planned on going back to the Seattle area and living on a trawler for our early retirement years. It's certainly not the Carribean w/ the clear blue water and warm tropical days but the weather can be great in the summer and the water is clean and deep. There is some gorgeous cruising in the Canandian Gulf Islands and north of there. ~ Dino

[HotTubJohnny]

HET and BYD report earnings after the close tomorrow. Should be interesting. I think all that hurricane damage started us down an ugly path in the casino stocks. Hopefully that negativity is built into the price already.
I'm also hoping a bit of the WSOP earnings still show up in HET's report. The end of the world series spanned quarters, so i'm not sure if it will or not.

Also of interest... have you guys seen this new development caesars is doing in AC? http://www.pieratcaesars.com/main.html
I love the idea of fancy shops to separate new yorkers from their money. I strongly feel there's money making possibilities in AC if these companies step up to the challenge. Just go to Borgata to see what can be done there.