In a message dated 04/24/05 4:41:31 PM Eastern Standard Time,
brumar_lv@yahoo.com writes:
Also, I did not realize Wynn was "forced out"
at the Mirage. Why was that?
Bad for investors of the his stock.
[Non-text portions of this message have been removed]
"Forced out" is not entirely true. A historical look at the stock
shows that in May 1999, MIR stock was 26 3/8. By Feb 22, 2000, it had
fallen to 10 7/8. With such a huge drop in the equity component of the
company, the banks and other lenders were probably shocked. In times
like that, said lenders have been known to "suggest" that the company
be sold before more drastic actions are needed. So Wynn eventually
worked the deal with MGM at $21 a share later in 2000. Given what has
happened in the last 5 years here in Vegas with strip real estate
prices, $21 a share was a fire-sale price.
In a message dated 04/24/05 4:41:31 PM Eastern Standard Time,
brumar_lv@y... writes:Also, I did not realize Wynn was "forced out"
at the Mirage. Why was that?
"Forced out" is not entirely true. A historical look at the stock
shows that in May 1999, MIR stock was 26 3/8. By Feb 22, 2000, it
had
fallen to 10 7/8. With such a huge drop in the equity component of
the
company, the banks and other lenders were probably shocked. In
times
like that, said lenders have been known to "suggest" that the
company
be sold before more drastic actions are needed. So Wynn eventually
worked the deal with MGM at $21 a share later in 2000. Given what
has
happened in the last 5 years here in Vegas with strip real estate
prices, $21 a share was a fire-sale price.
I recall (its been awhile so I may be wrong) that Wynn traveled to
Wall Street to explain things and was received poorly. Then he went
to Washington DC to discuss gambling issues, which was a hot issue
then. One person he talked to was John McCain, who wants to
outlaw gambling entirely, and became even more discouraged. McCain
is very blunt and plain spoken. So he returned to LV scared and sold
the Mirage almost immediately. I think he worried McCain might
succeed, leaving him with nothing! He decided to stay on the
sidelines a few years to let the dust settle. Nothing happened, so
he jumped back in.
--- In vpFREE@yahoogroups.com, "Charles" <fromthevault@y...> wrote:
I recall (its been awhile so I may be wrong) that Wynn traveled to
Wall Street to explain things and was received poorly. Then he
went to Washington DC to discuss gambling issues, which was a hot
issue. One person he talked to was John McCain, who wants to
outlaw gambling entirely, and became even more discouraged. McCain
is very blunt and plain spoken. So he returned to LV scared and
quickly sold the Mirage. I think he worried McCain might
succeed, leaving him with nothing! He decided to stay on the
sidelines a few years to let the dust settle. Nothing happened, so
he jumped back in.
Thinking back, I believe McCain was sponsoring a bill to outlaw all
sports betting nationwide, not all gambling. But I think McCain
would like to outlaw all forms of gambling. I have great respect for
McCain, but disagree with him on this issue, including sports betting.
--- In vpFREE@yahoogroups.com, "brumar_lv" <brumar_lv@y...> wrote: