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   Non-TechMGM Grand Hotel and Casino Symbol MGG


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To: Steven W. who wrote ()7/24/1997 6:21:00 PM
From: cboothe
   of 96
 
Randy,

What do you think will happen with MGG tomorrow? I'm kinda surprised
we closed lower on a record earnings announcement?

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To: cboothe who wrote (34)7/24/1997 8:15:00 PM
From: Randy Atkins
   of 96
 
I think we could move sideways, maybe even dip a little from the gain of the last couple of days. I think the street will need some time to digest and sort out the debt issue and its' consequences. The debt issue is complicated and makes a new variable that we didn't count on just 24 hours ago. I want to reinterate that the analysts really do not understand this sector or more importantly, MGG. They look at the sector and lump all players in it together. The sector REALLY DOES suck; CIR is down, the Boyd Group stinks, the stations' casinos are horrible, Debbie Reynolds' casino just filed for bankruptcy, LV Hilton is half empty and the remodeled downtown area is marginal. However, MGG is a winner.

I don't want to sound like a smart-ass, but look back at my previous posts...everything I said came true; New York New York continues to shine, gambling earnings improved (especially bacarrat), occupancy revenue actually increased; and its because MGG is pulling from Luxor, Excalibur, Hilton, and other crappily run properties. All of this during a TOUGH quarter. I could see all that ahead of time and I'm just a country bumpkin down here in Lubbock, TX. The analysts remain suspect and ignorant. Speaking of ignorant, you wouldn't believe some of the stupid questions that came in from some of these brokerage houses during the conference call. Some of the guys fumbled so badly with their questions that Yemenidjian had to help them out and lead the question so that he could give an intelligent response.

For these reasons, I don't think we will see any kind of quick runup, but I do see a slow and steady increase over time. I'm going to park my money here for awhile and continue to accumulate. Unless I am missing something, I don't see anything in the debt plan that will be adverse to us. In fact, I am very excited about their plans. Listen to the call, you will see what I mean. There is much opportunity here for improvement with very little downside.

--Randy

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To: Randy Atkins who wrote (35)7/25/1997 6:56:00 AM
From: Randy Atkins
   of 96
 
From Reuters, Thursday, July 24...

"MGM Grand shares were up $6.25 at $34.81 on the New York Stock Exchange following its second quarter earnings report."

Hmmmm...don't we wish it were up $6.25?!<g>

--Randy

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To: Randy Atkins who wrote (36)7/25/1997 7:54:00 AM
From: battle beast
   of 96
 
Circus Circus was mentioned in the latest BW as a buyout target, possibly fetching $31 a share. It may bring some movement to the whole casino section.

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To: cboothe who wrote (34)7/25/1997 2:49:00 PM
From: Steven W.
   of 96
 
CB,

This debt thing is putting questions out there about future earnings. I
never understood why companies like MGG just couldn't sit back for
a year on expansion, earn ton's of money and watch their stock go
through the roof.

Trump has shown everyone in this business that greed is not good.
MGG doesn't get the respect that Steve Wynn from the Mirage gets.
The board has done a fine job with the company.

I plan on holding this puppy for a while. This has been the hardest for
me to predict movement in the last few months. One thing for sure,
earnings are very strong and the 2 flagship resorts are doing great.

Steve

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To: Steven W. who wrote (38)7/26/1997 2:21:00 AM
From: Randy Atkins
   of 96
 
I really thought we would get an earnings surprise this quarter. Everything was there and in place. The killer was the Tyson-Holyfield fight. Yemenidjian indicated that the resultant disruption to the casino (two hours of downtime) resulted in a loss of $22 million. He likened these big fights to their New Year's Eve celebrations. IF that situation hadn't occured, the additional revenue that was expected would have easily pushed the quarter over into a significant surprise.

Just meeting first call doesn't cut it in this market nowadays. Even with all time earnings. Had we beat the estimate by just 1 cent, I believe we would be at $36 right now.

Looking forward to this quarter, I am still optimistic. Reports I have read concerning advance bookings from major tour operators and airlines that feed the LV market are very positive for the second half of the year. They were not positive for the first half of the year. This should push room rates and occupancy higher. It is the new rooms that are driving casino revenue.

New York is still THE attraction, and will be until Bellagio comes on line. Over 1 million visitors PER WEEK to New York. Absolutely incredible. 99.5% occupancy. MGG is still 22% down from its high. The only negative I can see this quarter is the 600,000 shares in trust for Don King that will be dumped, due to the breakoff with MGG after the Tyson-Holyfield fiasco. Yemenidjian said that it would happen soon.

--Randy


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To: Randy Atkins who wrote (39)7/27/1997 12:19:00 PM
From: Randy Atkins
   of 96
 
Here is an interesting article from David Berman. He has a pretty good take on the Las Vegas situation.

hkproducts.com

--Randy

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To: Randy Atkins who wrote (40)7/28/1997 12:42:00 AM
From: Randy Atkins
   of 96
 
I'll go out on a limb here and predict that we will see some upward movement Monday. Friday's 15/16th's loss was due largely to a single 120,000 block sell.

We will regain some ground Monday.

If I'm wrong, next time I go to LV, I will buy you all a shrimp cocktail from Golden Gate. Plus crackers...

--Randy

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To: Randy Atkins who wrote (41)7/28/1997 1:58:00 AM
From: Robet Butkus
   of 96
 
A little blurb in Barrons..shold help some,

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To: Robet Butkus who wrote (42)7/30/1997 10:59:00 AM
From: Jesh
   of 96
 
I was just in Vegas a few days ago. No signs of slowdown, though traffic is still a problem. People still flock MGG & other places. Their EFX show is a sell out! Looks like this is a good time to BUY some MGG. CIR looks like a good buy as well.

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