| To: Steven W. who wrote (77) | 4/6/1998 8:54:00 PM | | From: Jon Dough | | | |
MGM Grand is a great deal at $35. Although over the next year or so, earnings growth will be limited because of the upcoming competitiveness in the Vegas market (Bellagio, The Venetian, Paris, and Mandalay Bay), MGM has foreseen this and is spending $700 million to upgrade its flagship property. This will give MGM the ability to hold on to its market share when all the new places open. I don't expect the renovation to increase their market share or earnings, but it will let them hold on to what they have now. MGM also owns half of NYNY and this is one of the best properties in Vegas. NYNY will hold its own when the new resorts come online.
The only way a casino's profits can substantially increase is by building (or acquiring) new properties. MGM will be building in Detroit and Atlantic City soon. They'll be in a great situation in Detroit, having one of the three precious gaming licenses. In Atlantic City, they'll be one of the new Vegas-style properties that Atlantic City currently lacks. Atlantic City casinos are currently warehouses for gambling. The "big" attraction there now is the new "Wild West" themed casino area at Bally's. The gamblers all flocked there for something new and fun, putting big profits on the bottom line of Bally's. Just imagine what MGM can do with an entire entertainment-themed resort there.
The MGM CFO expects 1998 earnings in the $2.00 to $2.10 range. That gives a forward P/E of about 17. Right now, investors are focused on the upcoming Vegas competition and have depressed MGG's price, but they haven't factored in the growth from Detroit and Atlantic City. In a few years, MGM will be one of the premier diversified gaming operators. With this kind of upside potential, MGG at $35 is a bargain. It's only a matter of time before investors look beyond the short term supply concerns in Vegas and see the big picture. |
| | MGM Grand Hotel and Casino Symbol MGG | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Jon Dough who wrote (82) | 6/23/1998 1:30:00 PM | | From: Astarte | | | |
** Hotel and casino giant MGM GRAND (MGG: 30-5/8, + 4), which has
suffered through two quarters of lower-than-expected gambling
revenues, said Tuesday its board has authorized the company's
purchase of up to 12 million common shares, representing about 20%
of the company's shares outstanding. Of those, 6 million would be
purchased at $35 per share in a tender offer. Separately, the
company anticipates that lower than average table games hold
percentage at MGM Grand Las Vegas will result in 2Q earnings in a
range of $0.25 to $0.30 per share, compared with estimates of
$0.41 per share, according to First Call. See Full Story at
infobeat.com.
Isn't this a big positive? I'm in @ 32 15/16. Would be interesting to hear some comments about the stock repurchase!
Astarte
|
| | MGM Grand Hotel and Casino Symbol MGG | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Astarte who wrote (83) | 7/22/1998 10:48:00 AM | | From: Vladimir Zeetser, M.D. | | | | |
MGG is definitely a buy, excellent fundamentals compared to the other casinos out there and their potential is to only go UP. I like the company's buyback to help the stock. They obviously have good business sense and care about investors. Unfortunately, I have holding this stock for 7 months, but I am positive that it will see a dramatic increase in price, if not in Nov-Dec, then Jan. Hell, I lose about $30,000 a year there. |
| | MGM Grand Hotel and Casino Symbol MGG | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Vladimir Zeetser, M.D. who wrote (84) | 8/3/1998 2:45:00 PM | | From: Vladimir Zeetser | | | | |
They say the house always wins.. On craps, I used to bet big red (7), because the house is 7 and it cleans up the table. However, I recently lost my ass playing 7 when the rollers through 34 rolls of the dice with no 7. That's how MGM must be feeling right now. I thought that this had to be the most safe investment that I have ever made, but it turns out to be the only stock on which I am losing a substantial amount of money. Obviously I am gonna stick with it until I break even or make a profit, but I'm just disgusted as to how long I have had so much money tied up in garbage. I knew I shouldn't have trusted that Armenian. |
| | MGM Grand Hotel and Casino Symbol MGG | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Vladimir Zeetser who wrote (86) | 11/9/1998 9:54:00 AM | | From: Troy Griffin | | | |
If you are interested in reinvesting some of your profits into
a gaming company that is presently trading at 1.25, and within
6 to 8 months could possibly be trading at mid to high digit prices I
suggest you look at sungold gaming international. (SGGNF).
They are presently involved in three projects
1. A casino in michigan, USA.
2. A horse racing track in richmond, B.C. Canada
3. A casino/resort in Korea 3km from the new inchon airport, the
biggest airport in the pacific rim
I suggest you do all your due diligence and also speak with the
CEO 1-604-222-3155 also check out their website.
www.sungoldgaming.com
I think you will find this company to be very interesting
Happy Investing |
| | MGM Grand Hotel and Casino Symbol MGG | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| |
