Quote:
Originally Posted by youtalkfunny
MGM/Mirage throws in the towel on Brimfield, MA. Smart move.........
My question: with MGM/Mir, HardRock, Mohegan Sun, and Ameristar looking west; the Wampanoags in the SE, with no apparent connection to any US gaming corporation just yet; Steve Wynn and Caesars being the only real names I've heard in the Boston district...
...are ANY of these companies NOT billions of dollars in debt? Is there a single healthy US Gaming corporation, and if so, are any of THEM looking at MA?
Well- yeah, I think. Mohegan remains on some solid ground, I think? With only two locales right now- NYT article said they were solid in CT, and all reports indicate they are on track in Wilkes-Barre. (probably high debt due to recent acq/build, but still on track) alas, privately held. who really knows?
I think Wynn has good earnings, due to making all profits in Macau, and being smart enough to just run his businesses in LV in savvy enough way to remain above H20. Stock has run up to 125 area, making his PE about 25.
Caesars looks good on paper- if you believe the paper its written on. SO much of their model is built on acquisition of properties via restructuring their debt.
Its why they are a slam dunk for SuffolkDowns- they own a huge piece of their debt. Currently unprofitable for its investors due to massive write-downs and stuff.
PennNational/Hollywood has been picking off properties wisely. Todays stock is $44 with a PE ratio of 19.
Ameristar I know very little about. EPS last report was 0.17 todays price is $19.00
Being UNprofitable is a sour economy isn't the worst thing in the world anyways. Construction coasts are lower, depreciation expenses can be long-term maxed to ensure lowest margins/taxes. When the economy picks up after the elections (perhaps), now you have more ownership of your phys.plant, less debt, and more room for profit.
Agree that MGM bow-out is actually a good thing for them. Massachusetts is corrupt and impossible to do business with for a large, outintheopen publicly-held corp like MGM.
My take on this is...the Wampanoags continue to miss the boat. If you want to go in the gaming business, don't you hire someone who knows what they are doing? ala Foxwoods,Mohegan? The Wamps want to hire thugs and threaten to build here, there, anywhere, but have never come up with viable plans and serious proposals, just press releases, blurby news bits, and then disappear for a while. They wanted stuff handed to them in Fall River New Bedford area, and that just doesn't happen.
I also continue to like Plainridge for a "slots-only" site, above the 3 state-approved full fledged casinos. Gary Piontkowski appears to be playing his cards correctly, within the political parameters.