MGM - MGM MIRAGE

[rando]

Yeah I quickened the pace and am already out at 9.58. Too much market indecision, and I'd rather day trade the intraday reversals and trends, start with a clean slate at the open. Of course when I do that I usually daytrade UCO in premarket, for like 30 cents, who am I kidding. But the way MGM has been smashed recently, another downward correction may just happen this week, and if so, back in the pool.

[rando]

Tip you have any intel on the Aqueduct casino proposed for Queens, NY? PENN, WYNN, and MGM listed as bidders. Criteria for winning bid includes "proving to have the $200 MM available." I'm guessing that means MGM is the third horse in this race.

By A.D. Pruitt

Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--New York Gov. David Paterson is raising the ante for bidders vying to turn a dilapidated horse-racing track in Queens County into New York City's first casino-type destination.

Paterson's office recently notified six bidders, including gambling heavyweights Wynn Resorts Ltd. (WYNN), MGM Mirage (MGM) and Penn National Gaming Inc. (PENN) that the state wants a $200 million minimum upfront payment for the licensing fee. The interested parties have until Friday to respond and also to provide documentation that they have the funds on hand.

It's another twist in the bidding process for the 115-year old Aqueduct Race Track in Jamaica, N.Y. Some bidders privately expressed frustration that it is taking so long for the state to select a winner and said they received indications from Albany, the state capital, that a decision would be made by Labor Day. Nonetheless, about half of the bidders are on board with the new terms, including Penn National which already pledged $250 million upfront, the highest so far, as part of its initial proposal.

Morgan Hook, a spokesman for Patterson, would only confirm that a letter was sent to the bidders Friday and said a timetable for a decision was never established. The governor, speaker of the assembly and senate president must unanimously agree on the winning bidder.

The bidders are aiming to renovate Aqueduct with thousands of video slot machines and other entertainment and dining fare. The racino--a horse track which has a casino--stands to generate up to $1 million a day in revenue for the state.

"We have no problem meeting the terms outlined in the letter regarding a minimum upfront payment," said William Bissett, president of Delaware North Companies' Gaming & Entertainment subsidiary. Delaware North is leading the bid for Aqueduct Gaming LLC. The company, which originally proposed a $100 million upfront payment, actually won the Aqueduct contract last year, but failed to secure the necessary financing amid the credit crunch.

Don Peebles, a Washington D.C-based real estate developer and hotel owner who is spearheading a bid with MGM Mirage and Harbinger Capital, said his group will increase its minimum upfront and has already submitted the requested documentation.

He said the big question is what happens once the winner is announced.
"What assurances will the state provide that the process will move more expeditiously than it has so far?," he asked.

[Tiptopptrader]

Originally Posted by rando

Tip you have any intel on the Aqueduct casino proposed for Queens, NY? PENN, WYNN, and MGM listed as bidders. Criteria for winning bid includes "proving to have the $200 MM available." I'm guessing that means MGM is the third horse in this race.

I am guessing you would be right. It will be hard to beat out WYNN or PENN. Hard to say if Governor Patterson has any views on Steve Wynn's latest political views. It should not really matter but behind the scenes you never know.

[rando]

This one is moving up my watch list with reckless abandon as all the rats scurry for the pre-earnings exits. I might take a swing at some options before close but those premiums are just stupid. More likely looking for it to go sub 9.25 or so then i will consider a buy.

[Tiptopptrader]

Originally Posted by rando

This one is moving up my watch list with reckless abandon as all the rats scurry for the pre-earnings exits. I might take a swing at some options before close but those premiums are just stupid. More likely looking for it to go sub 9.25 or so then i will consider a buy.

It looks like this is being helped along by short pressure on the Big Four even with great data out of Macau...weak earnings from MGM could put a hurt on the gaming sector. Hopefully they have a good forecast. . .

[rando]

from my news feed:

Rumors going around of a secondary on MGM Mirage (NYSE: MGM). Shares down 3.2%
News Provided by Acquire Media Corporation

And this one, key points in bold:

Nov. 4--The casino licensing for CityCenter has warranted its own separate hearing from Nevada gaming regulators.

The Gaming Control Board tentatively plans to discuss the $8.5 billion project, which is a 50-50 joint venture between MGM Mirage and Dubai World, the investment arm of the Persian Gulf emirate, on Nov. 13 in Las Vegas. Next week's scheduled control board hearing in Las Vegas has a larger-than-average agenda.

Nevada Gaming Commission would then take up the CityCenter issue on Nov. 19 in Las Vegas. The control board makes recommendations to the five-member commission, which has the final say on licensing matters.
Control board Chairman Dennis Neilander said agents are still going over material for the hearing, including documents that need to be translated into English from Arabic.

Attorney Ellen Whittimore, who represents MGM Mirage, said CityCenter, the largest privately funded construction project ever undertaken in the United States, deserves a separate hearing.

The Strip development, which has taken more than five years of planning and construction and covers 67 acres between Bellagio and Monte Carlo, will have roughly 6,000 hotel rooms and 2,400 high-rise residential condominiums within five towers and 500,000-square-foot retail, dining and entertainment district. CityCenter opens in phases starting in December.

"This is a major project that deserves the full attention of the board members, especially because of what this projects means to the community," Whittimore said. "This way, the board members will receive a full presentation without feeling rushed."

Whittimore said it was unclear who will attend the hearing from Dubai World, which spent almost $6 billion in 2007 to buy half of CityCenter and 9.4 percent of MGM Mirage's outstanding shares.

Dubai World's investment has decreased dramatically in value. The entity paid $80 a share for MGM Mirage's stock, which closed Tuesday at $9.65 on the New York Stock Exchange.

In a filing with the Securities and Exchange Commission earlier this month, MGM Mirage said the value of its half of the CityCenter joint venture was worth $2.44 billion, meaning the project is now worth a little more than half the construction costs.

Dubai World needs to be licensed to share in the gaming revenues from the casino inside Aria, CityCenter's 4,004-room centerpiece. Vdara, a 1,500-room hotel and condominium tower, and the Madarian Oriental, are both nongaming boutique hotels.

A year ago, when gaming regulators approved Dubai World status as an investor and allowed the entity to increase its stake in MGM Mirage, officials asked that Dubai World Chairman Sultan Ahmed Bin Sulaymen and Chief Financial Officer Maryam Sharaf file routine gaming license applications with the state.

Dubai World's corporate structure is governed by the emirate's laws and regulations.

In March, Dubai World filed a surprise lawsuit against MGM Mirage in Delaware, saying its joint-venture partner had mismanaged the CityCenter's development costs. Dubai World also refused to make its half of monthly payments that were due to keep CityCenter construction moving forward.
MGM Mirage was able to gain approval to pay both its portion and Dubai World's portion of the payments, keeping CityCenter from shutting down and ending up in bankruptcy.

A month later, MGM Mirage and Dubai World ended their feud by agreeing to a comprehensive plan to fully fund and complete CityCenter. Dubai World dropped the lawsuit.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

By my quick and dirty math, Dubai World lost something like 1.4 BB on their 1.75 BB investment in company stock, and about 2.25 BB on their 4.5 BB investment in City Center. That's Las Vegas CRE 2006-2009 for you, in a nutshell!

[madstal]

November 5, 2009 - 8:30 AM EST


MGM Mirage Reports Third Quarter Financial Results
Operating Trends Continue to Improve; Credit Facility Amended to Provide Further Financial Flexibility
Nov. 5, 2009 (PR Newswire) -- LAS VEGAS, Nov. 5 /PRNewswire-FirstCall/ -- MGM MIRAGE (NYSE: MGM) today announced its financial results for the third quarter of 2009. The Company reported a third quarter diluted loss per share of $1.70 compared to income per share of $0.22 in the prior year third quarter. The current year results were impacted by non-cash impairment charges totaling $1.17 billion, or $1.72 loss per diluted share net of tax, including a pre-tax non-cash impairment charge of $956 million related to the Company's investment in CityCenter and a pre-tax non-cash charge of $203 million related to impairment of CityCenter's residential real estate under development.

[rando]

Amazing how these awful results are being embraced in the form of 7-8% gains in PM. That is a lot of losses.

[Tiptopptrader]

Originally Posted by rando

Amazing how these awful results are being embraced in the form of 7-8% gains in PM. That is a lot of losses.

I think it may be Seinfeld's Bizzaro world but I guess they beat estimates.

[Ducati]

Originally Posted by rando

Amazing how these awful results are being embraced in the form of 7-8% gains in PM. That is a lot of losses.

hahaha, i for one hope it holds most likely not ....