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MGM stock

Discussion in 'Casino Industry & Development' started by dnreyes23, Oct 3, 2016.

  1. dnreyes23

    dnreyes23 Low-Roller

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    MGM stock is up about 40% from a year ago. Looks like the PGP is in full swing. Wonder what's next for the cost cutting?
     
  2. VegasTravelNews

    VegasTravelNews Tourist

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    A year ago MGM Resorts was 20. It closed today just above 26. I believe that would be about a 30% gain. Will we see more costing cutting or new fees? Only time will tell.
     
  3. dnreyes23

    dnreyes23 Low-Roller

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    image.png
    Just going by my stock tracker.
     
  4. dnreyes23

    dnreyes23 Low-Roller

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    Guess I should have said 52 week low vs 52 week high was about 40%
     
  5. Grid

    Grid VIP Whale

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    Right now all of the cut backs and additional fees look great to stock holders. As does the projected profits from the new arena. But sooner or later the lost gambling base will come back to haunt them.

    How many players, even those that don't have to pay to park, swore off MGM for that fee alone? Locals were exempt from the fee until New Years Eve. After that, pay up. And they have way too many options to chose from. They wont be nickel'd and dime'd by MGM if they want to grab dinner or gamble a few hours on the weekend.

    Sadly there is no escaping the $30 resort fees, plus tax, that MGM has. Everyone on the strip pretty much followed suit.

    But right now those fees, and cut backs to comps (counting the check-out day as a gambling day, reduced free play or FB) have moved players to other clubs. And that arena? How many gamblers will avoid that entire corridor during an event? That's a lot of empty slot seats.

    You are seeing a stock bump right now due to the nut and shell game that came with the launch of MGM Growth Properties LLC. MGM has "sold" its land to itself (pretty much) and those fake sales are adding dollars that do not exist in the real world. Someone correct me if I am wrong, but they already "sold" all of the land their building sit on to MGP so they wont be able to collect that revenue again.

    And now MGP will collect rent from MGM so all casinos will carry that much more debt.

    MGM buys out the rest of Borgata for $600MIL. Since they already owned 50% of the company I would assume its now worth $1.2BIL. BUT, MGM Resorts will sell all of Borgata's real property to MGP for $1.2 billion!

    MGM pays $600MIL for the Borg, keeps the operations, and all casino revenue, and yet sells the land to itself for the full value of $1.2BIL. IE, they got it for free and "made" $600MIL by selling the land to itself.

    This will all catch up to them.
     
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    • Disagree Disagree x 1
  6. Gaggles

    Gaggles VIP Whale

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    Happy stock holder here. Dissatisfied gambler due to the never ending steam of new charges to go to their hotels!
     
  7. TableToddyy

    TableToddyy Low-Roller

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    I read they're shopping the Mirage. It's been in need of a little TLC for a couple years.
    I think the gaming stocks are going to pop soon. I've been on wynn @ 57. been looking at MGM, MPEL
     
    Last edited: Oct 9, 2016
  8. Grid

    Grid VIP Whale

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    It was one year ago to the day Phil Ruffin (who bought TI from MGM already) offered $1.3BIL for the Mirage. MGM instead sold the land it sits on to MGP as part of its REIT deal. Ruffin had no interest in the property if he couldnt actually buy the land it sits on.

    I haven't seen a new story on the sale of the Mirage since now its that much harder to sell. The new owner would have to buy the business from MGM and pay rent to MGP or try to buy the business and the land from 2 separate controllers. Much like my post above that Gilly did not agree with.

    http://www.reviewjournal.com/business/casinos-gaming/treasure-island-owner-says-mgm-resorts-rejected-13b-offer-mirage