http://online.wsj.com/article/SB122506790177270673.html?mod=rss_Business
I think most of you will find this interesting reading, and will give
more detail to what many of you already know.
WSJ Article On Harrahs, Gaming Sector 10/27/08
--- In vpFREE@yahoogroups.com, "paladingamingllc"
<paladingamingllc@...> wrote:
mod=rss_Business
I think most of you will find this interesting reading, and will give
more detail to what many of you already know.
I was just getting ready to post this. Looks like Gary still doesn't
understand how to draw more business in the doors. I expect a sell off
of regional casinos. They'll have to change their "earn them (TR
POINTS) in Biloxi, spend them in Vegas" campaign.
Dude, GBX and Showboat in AC have been on the block since before the
takeover announcement, with no takers (as if someone could find the
money to buy them right now). Rio was on the block as well at one
time, but it's off the block for now, Harrahs execs were very happy
with their numbers as of last summer.
People are tapped out right now, but I think that Harrahs appeals more
to their market than the higher-end Sands Las Vegas or MGM Mirage.
Note that the article states that Harrahs is doing better than MGG or
SLV (although everyone I know loves SLV right now at about $6/share;
MGG is in quite a bit of hurt, though. Sands has a presence in Macai,
MGM has CityCenter, which may turn out to be the wrong investment at
the wrong time-we'll see).
The Chinese Yuan and Japanese Yen will continue to appreciate, will it
appreciate enough to get those high-end customers to return to Vegas
and not Macau? Time will tell.
···
--- In vpFREE@yahoogroups.com, "brunoflipper" <jimmccollum@...> wrote:
--- In vpFREE@yahoogroups.com, "paladingamingllc"
<paladingamingllc@> wrote:
>
> http://online.wsj.com/article/SB122506790177270673.html?
mod=rss_Business
>
> I think most of you will find this interesting reading, and will give
> more detail to what many of you already know.
>
I was just getting ready to post this. Looks like Gary still doesn't
understand how to draw more business in the doors. I expect a sell off
of regional casinos. They'll have to change their "earn them (TR
POINTS) in Biloxi, spend them in Vegas" campaign.
"The cost of insuring against Harrah's defaulting on its debt, via
credit default swaps, is among the most expensive on the market."
The kiss of death.
--- In vpFREE@yahoogroups.com, "paladingamingllc"
<paladingamingllc@...> wrote:
mod=rss_Business
···
I think most of you will find this interesting reading, and will give
more detail to what many of you already know.
--- In vpFREE@yahoogroups.com, "paladingamingllc"
<paladingamingllc@...> wrote:
I think most of you will find this interesting reading, and will give
more detail to what many of you already know.
Very interesting article, thanks. Seems all the major LV casinos are
having stock market trouble. They all appear to be very risky
investments. If one (or more) of these companies can't meet their debt
obligations I assume, like WAMU, the stock becomes worthless. Is that
correct? However, the casinos would not actually close ... wouldn't
they be taken over by banks or others who hold the debt?
I came across a different approach to gaming, that seems to work no
matter what happens to a casino company, provided the casino remains
open. Check out Global Cash Access Holdings (GCA). They run the ATMS
and cash access machines in 1200 gaming businesses world wide (80% of
the total). Monday close was $2.51, down from the $20 range two years
ago. The stock keeps dropping, but business keeps growing! They have
booths #2622 and #3518 at the Nov.18-20 Global Gaming Expo in LV.
Thanks for this Paladin - all I have in response is WOW! Gotta be some pretty tight asses in the old HET offices right now. These guys are the poster child for the rampant excesses in the credit markets, huh? And they looked so smart a few years ago...(-;
Does anyone seem to kinda be rooting against them right now? What is that German word...? You don't really want anything bad to happen, but then again.......
It cracks me up to read the Harrah's board here on Yahoo! - "HET has cut my comps by 50% this year. If they don't be careful I'll be leaving them - soon!" That's like the abused woman who swears she is leaving the next time the old man beats her.........
Tourism is already way off. What happens if this gets real ugly? Say a 30 to 40% drop in numbers? HET will certainly fold, as will others. But then what? Will banks step in? I know I am not as excited about a declining game inventory, coupled with reduced comps. I can't envision going to Vegas and paying for rooms - but that is where I am getting to as my play drops in the face of declining opportunities.
Cheers!
Jigger
···
--- On Mon, 10/27/08, paladingamingllc <paladingamingllc@yahoo.com> wrote:
From: paladingamingllc <paladingamingllc@yahoo.com>
Subject: [vpFREE] WSJ Article On Harrahs, Gaming Sector 10/27/08
To: vpFREE@yahoogroups.com
Date: Monday, October 27, 2008, 2:52 AM
http://online.wsj.com/article/SB122506790177270673.html?mod=rss_BusinessI think most of you will find this interesting reading, and
will give
more detail to what many of you already know.------------------------------------
vpFREE Links: http://members.cox.net/vpfree/Links.htm
Yahoo! Groups Links
--- In vpFREE@yahoogroups.com, Jigger Woodruff <bayfieldkent@...>
wrote:
Does anyone seem to kinda be rooting against them right now? What
is that German word...? You don't really want anything bad to
happen, but then again.......
I think this is the word you were looking for:
Schadenfreude
Main Entry: scha·den·freu·de
Pronunciation: \shä-dən-froi-də\
Function: noun
Usage: often capitalized
Etymology: German, from Schaden damage + Freude joy
: enjoyment obtained from the troubles of others
Neil M.
···
Date: 1895
--- In vpFREE@yahoogroups.com, "paladingamingllc"
<paladingamingllc@> wrote:> I think most of you will find this interesting reading, and will
give
> more detail to what many of you already know.
>>>>>>>>
>>>>>>>>
Very interesting article, thanks. Seems all the major LV casinos
are
having stock market trouble. They all appear to be very risky
investments. If one (or more) of these companies can't meet their
debt
obligations I assume, like WAMU, the stock becomes worthless. Is
that
correct? However, the casinos would not actually close ...
wouldn't
they be taken over by banks or others who hold the debt?
I came across a different approach to gaming, that seems to work
no
matter what happens to a casino company, provided the casino
remains
open. Check out Global Cash Access Holdings (GCA). They run the
ATMS
and cash access machines in 1200 gaming businesses world wide (80%
of
the total). Monday close was $2.51, down from the $20 range two
years
ago. The stock keeps dropping, but business keeps growing! They
have
···
--- In vpFREE@yahoogroups.com, "brumar_lv" <brumar_lv@...> wrote:
booths #2622 and #3518 at the Nov.18-20 Global Gaming Expo in LV.