Caesars Entertainment Corp
Must-know: Important performance metrics for casino resorts
The occupancy rate is very important for casino resorts. The occupancy rate shows the relationship between the number of occupied rooms and the total number of rooms.
Must-know: The most popular casino games
Casinos’ popularity is growing. This suggests that people like to gamble occasionally. Unfortunately, they don’t always win. For most of the people, the real fun is playing the game—not necessarily winning.
Why Caesars Entertainment has a massive $24 billion debt
Texas Pacific Group and Apollo Management took Harrah’s Entertainment, now Caesars Entertainment, private in a leveraged buyout deal valued at $30.7 billion in 2008.
Why Pinnacle’s leverage ratio could be a concern for investors
Pinnacle Entertainment (PNK) has a massive debt-to-equity ratio of 15.4. This indicates that PNK is very aggressive in financing its operations with debt.
Soros Fund Management’s Major Picks amid Trade War
Soros Fund Management’s top five buys in the second quarter were Invesco QQQ Trust (QQQ), Alphabet, eBay, Symantec, and Red Hat.
Fixed income ETF must-knows: Comparing Treasuries and other ETFs
Credit spreads associated with lower rated bank loans found in SNLN and BKLN could underperform as corporations see cash flow decline and their ability to service their debt is compromised.
Macro investment recovers: Time to short the long end of the curve?
This article considers the possibility of rising rates and the case for taking a bearish view on bond prices.
Why the US online gambling industry could be $5.2 billion by 2020
Morgan Stanley expects that exponential growth in the U.S. online gaming market could happen through interstate online poker and wide-area progressive slots.
Why investors should learn about MGM’s top shareholders
As an investor, you should know whether or not MGM’s (MGM) management is committed to its future. Management shows its commitment by owning shares.
Fixed income must-know: Why the Fed struggles to create inflation
This article considers the Federal Reserve Bank’s continued struggle to reach its inflation target and the implications for fixed income investors.
Why investors should look at MGM’s operating segments
Currently, MGM operates 15 wholly-owned resorts in the U.S. MGM China’s operations include MGM Macau and the development of MGM Cotai.
Why the federal budget deficit is returning to normal levels
This article considers the ongoing decline in the federal budget deficit and considers the implication for fixed income investors.
Bear strategy: Profit from rising rates with fixed income ETFs
Investors could consider hedging their short-term duration risk (HYG: 3.98 years, JNK: 4.20 years) with a short position in longer-dated bonds.
The George Soros Fund Shares 13F Analysis
On November 14, The George Soros Fund Management LLC filed 13F. The firm’s total market value was around $3.6 billion at the end of Q3 2019.
Scientific Games Merger Expected To Yield Cost Synergies
Scientific Games expects to achieve ~$220 million in cost synergies and $25 million in capital expenditure savings by consolidating operations.
Profitability analysis of Pinnacle Entertainment
Pinnacle Entertainment’s compounded annual growth rate of adjusted property EBITDA over a three-year period ending on December 31, 2013, stood at 20.2%.
How George Soros Played the Market in Q4
On February 14, George Soros reported his fourth-quarter portfolio holdings. His fund’s portfolio value declined 28% to $3.3 billion at the end of the fourth quarter.
AAA and AA credit versus the below-investment-grade Sprint
This article considers the trade-offs between high-quality, low-yielding fixed income opportunities and lower-quality higher yields in the current improving economic environment.
Flight from quality and duration: Going to Vegas with SNLN and BKLN
Ultra-short duration: Avoiding losses in a rising rate environment The below graph reflects changes in popular fixed income ETFs since the 2008 crisis. As the bond market rally has softened and interest rates have risen, longer-duration bonds, as reflected in the iShares Core Total U.S. Bond Market ETF (AGG), with a duration of 5.11 years, […]
Must-know: Caesars Entertainment’s recent 2Q14 results outlook
Caesars Entertainment reported a Q2 loss of $466.4 million, or $3.24 a share, as compared to last year’s Q2 loss of $212.2 million, or $1.69 a share.
Fixed income ETFs: Key differences in duration and quality
This article considers the trade-offs between high-credit-quality and lower-credit-quality, as well as shorter-duration and longer-duration, fixed income ETFs.
Must-know: An overview of MGM Resorts
MGM Resorts (MGM) was founded in 1986. MGM is based in Nevada. It’s one of the leading global hospitality and entertainment companies.
Overview of Caesars Entertainment and its complicated past
Caesars Entertainment has 51 casinos in 13 U.S. states and five countries. 38 are in the U.S. and primarily consist of land-based and riverboat casinos.
Las Vegas Sands’ major sources of revenue
Tables contribute only 6% to the total number of slot machines and tables combined in the U.S. Clearly, table games are more popular in Asia than in the U.S.
Why Caesars Entertainment’s stockholders’ equity is negative
Caesars Entertainment’s (CZR) stockholders equity is negative, according to its latest balance sheet. Stockholder equity consists of capital contributed and retained earnings.
Online Gambing Generated Over $100 Million In New Jersey
New Jersey allows gambling on casino games and poker. Currently, it dominates the market. It has ~90% of total US online gaming revenue.
Caesars Entertainment’s New Corporate Structure and Governance
On December 22, 2014, CZR and Caesars Acquisition Company (CACQ) entered into a definitive agreement to merge in an all-stock transaction.
A Quick Guide To The Bifurcation Of Caesars’s Operating Leases
The initial term of each lease will be for 15 years with four five-year renewals. CZR will guarantee payments and performance of the OpCo’s obligations.
Pinnacle Entertainment’s use of capital
Capital employment Casino companies fund their acquisitions with a significant amount of debt capital. ROIC (return on invested capital) is an important metric that shows how effectively a company makes use of its capital. To calculate ROIC, divide EBIT (earnings before interest and tax) by the employed capital. A higher ratio denotes that more profit […]
Why The Casino Business Is Affected By Inflation
When inflation is low, consumers have greater purchasing power. They have a higher spending capacity. Greater purchasing power is a positive sign for casino resort companies.
Wynn Resorts: A revenue breakdown
Wynn Resorts (WYNN) earns its revenues through casinos, hotels, food and beverages, and entertainment and retail operations.
Wynn Resorts’ management team brings a lot of experience
Wynn Resorts’ strong management Strong management is the backbone of a successful organization. Wynn Resorts’ (WYNN) senior executive team has an average of more than 25 years of experience in the hotel and gaming industries. Wynn Resorts is part of an exchange-traded fund (or ETF) like the Consumer Discretionary Select Sector Standard and Poors depositary […]
An overview of Penn National Gaming’s diverse holdings
PENN’s operated facilities feature ~31,000 gaming machines, 760 table games, and 3,100 hotel rooms. PENN owns and operates gaming and racing facilities with a focus on slot machines.
Leveraged loans maintained a 94th straight week of positive inflows
The U.S. leveraged loan market registered a straight 94th week of increase in net investors’ cash flows according to Lipper, a division of Thomson Reuters.
Acquisitions Help Casinos Grow Inorganically
Scientific Games agreed to buy WMS Industries for $1.5 billion, emerging as a global supplier of lottery equipment and slot machines to casinos.
Melco Crown Burdened With Heavy Gaming Taxes
MPEL’s room expenses comprise ~1% of its direct costs, mainly representing the costs in operating its hotel facilities at Altira Macau and City of Dreams.
Why Melco Crown Is Profitable In The Casino Space
MPEL derives ~94% of revenues from casino operations. Its casino business gross margin is 50% for the trailing 12-month period ending September 30, 2014.
Cost of Equity Deteriorating Melco’s WACC
Melco Crown Entertainment’s ROIC has been lower than its weighted average cost of capital for most of the last three years.
Must-Know: Melco Crown’s Major Shareholders
Members of management owning shares of their company shows confidence in the firm’s direction and outlook.
Carl Icahn: Analyzing Q3’s Top Buys
On November 14, Carl Icahn’s Icahn Capital Management filed its form 13F. In the third quarter, it included two new stocks.
Yellen weighs in on banks’ liquidity risk and capital requirements
On April 15, Fed Chair Janet Yellen made the opening remarks at the Federal Reserve Bank of Atlanta’s 19th Annual Financial Markets Conference, held on April 15–16, 2014, in Atlanta.
Cloudera Stock Surges on News of Icahn’s Stake
Yesterday, Carl Icahn revealed his 12.6% stake in data analytics company Cloudera (CLDR), causing its shares to jump.
Analyzing Soros Fund Management’s Largest Holdings in 4Q17
In this article, we’ll analyze Soros Fund Management’s largest holdings in 4Q17.
Liquidity analysis for Pinnacle Entertainment
The current ratio for Pinnacle Entertainment (PNK) had declined severely to 0.7 as of September 30, 2014, from 2.9 as of December 31, 2012.
Why Caesars Entertainment shut down its Atlantic City casino
Recently, Caesars Entertainment (CZR) closed down its profitable Atlantic City casino Showboat, which had operated for 27 years.
Must-know: Caesars’ performance since its memorable IPO
Caesars Entertainment’s first trade day was one of the best initial public offering performances in the history of the U.S. stock market.
Must-know: A SWOT analysis of Las Vegas Sands
The strengths, weaknesses, opportunities, and threats (or SWOT) analysis is a useful tool for decision-making in businesses and organizations. It helps companies identify the positive and negative factors inside and outside an organization.
Why the casino industry has huge growth potential
The development of gaming entertainment can create tens of thousands of jobs. It can generate substantial amounts of tax revenue. Gaming can attract massive amounts of foreign investment. It can also create tourist destinations. The market is expected to grow in the future.
Why governments want to encourage and legalize casino operators
Casino tourism revenues can provide major benefits for cities and entire countries. As a result, governments want to encourage and attract casinos. The potential for tax revenues is one of the main drivers behind the growth in the casino industry. National and state governments worldwide are more willing to legalize and license online gaming operators.
Why new entrants haven’t been a threat for the casino industry
The casino industry has heavy capital expenditures in gaming machines. This contributes significantly to the total output that’s generated by a casino operator. This is why the threat of new entrants to the industry has been low.
Why the casino industry’s growth trend continues
Even though casino expansion is cannibalizing existing market revenues, the growth trend doesn’t appear to be slowing down. State legislatures continue to view gaming as an easy way to earn a significant amount of taxes. In 2012, state gaming tax revenues increased by 8.5%—or $661.4 million.
Why the casino industry is rapidly expanding into new markets
The international gaming industry is growing quickly. It’s expanding to new jurisdictions. Many U.S. commercial casino companies, including Las Vegas Sands (LVS) and Wynn Resorts (WYNN), have helped the industry become an important part of the global economy.
Why the commercial gaming market is increasing for casinos
Casino gaming is the largest part of the commercial gaming market. It continues to grow in popularity. There has been a surge in demand for casino games. As a result, new casino destinations have been created. Existing casinos have also been expanded.
Why global growth is driving long-dated bond yields higher
This article considers the improving real GDP growth rate in the U.S. economy and the implications for fixed income investors.
Comparing leveraged loans and high yield bonds: Important ETFs
There are many ETFs that track the high yield bond market. The prominent ones are HYG and JNK, which collectively hold ~95% of the high yield bond ETF market share, and PHB.