MGM Stocks Shares Take a Beating
October 1, 2009 by Banker
Filed under Investing Journal
Today after recent news that the MGM company would not be able to fulfill their plan of a debt swap offer. This news drove MGM shares down several percent throughout the day, with a total loss of more than 10% on the share value and cost.
| 10.71 -1.33? (-11.05%?) Oct 1 4:01pm ET 10.70? -0.01? (-0.09%?) After Hours |
||||||||||||||
|
|
|||||||||||||
| Disclaimer | ||||||||||||||
The debt swap offer was called off due to the required minimum amount of notes not being tendered by holders, the debt exchange would have allowed current holders to exchange a portion of an existing $782 million in 8 .5% notes due in 2010, for the company’s 10 percent notes due in 2016.
(from StreetInsider MGM MIRAGE) – Hold rated, $13 price target. Soleil notes that MGM has dodged liquidity issues, but also points out that the casino operator “still faces debt maturities, Vegas capacity growth and a full valuation.” According to the firm, MGM trades inline with Las Vegas Sands and at a discount to Wynn on an earnings basis, but based on EBITDA multiple-to-growth, it trades at sharp premiums to the other two top names. MGM shares have tumbled nearly 9% today, most recently trading at $11.
Many experts are calling for a hold on the MGM shares with an expected value of only $13, personally it is believed to rise much higher, with the economic status of Las Vegas expected to rise in the tourist travel and the soon to be opened CityCenter.
Started daily holdings with 63 shares of MGM, dropped to the value of 10.76
Purchase another 55 shares of MGM.
| Positions (My Investments) | ||||||||
|
||||||||
Total Market Value: $1,281.48 |
||||||||
Total Invested – $1390.02
Ending Total Portfolio Value – $1281.48
Many experts agree that Las Vegas is set to begin a better local economic climate, and are approaching the Las Vegas stocks accordinly. Las Vegas sands is a strong buy recomendation from many analyst right now, and because of that it is begining to become over valued. The smart money is believe by us to be with MGM.
Popularity: unranked [?]
Betting on Vegas – MGM Stocks
September 29, 2009 by Banker
Filed under Investing Journal
MGM Stocks, are believed to be a safe bet.
Ok, after several days of lower then expected performance, many times losing a few dollars a day I have moved to what I believe to be a much safer round of holdings. With the economy turning around, I believe (and many agree) one of the first sub economy to improve is likely to be that of Las Vegas. Having been to Las Vegas, I personally know of the high quality and standard that the MGM casino and hotels abide by, so the company was a logical choice… Not to mention the soon to open CityCenter, which will open in stages and has been some what scaled back (from some reports), will be a huge success for MGM.
Today’s MGM Quote
| 12.70 +0.04? (0.32%?) Sep 28 4:01pm ET 12.73? +0.03? (0.24%?) After Hours |
||||||||||||||
|
|
|||||||||||||
Expected Hold Time – 9 months minimum
Total Invested – $790.02
Ending Total Portfolio Value – $810.07
There is not a great amount of action and change on a day to day basis, but with a new multiple tower resort and casino opening up on the Las Vegas strip, and the general increase in traffic that Las Vegas will encounter as the economy continues to improve… all of this means stability and growth. MGM is facing some serious debts, and thats what makes the stock so undervalued on the market today, but MGM is posed for serious growth over the next several months to a 1 year.
Popularity: 2% [?]
