Archive for April, 2009

MGM Gets a Sell Rating

Wednesday, April 8th, 2009

It seems that stock advisors change their recommendations about as often as they brush their teeth. From a “buy” recommendation one day to a “sell” recommendation not even 24 hours later.

MGM stock prices have been rallying in the last couple of days, this is largely due to announcements that the company may get funding support from outside sources or may sell of a few of their assets in order to continue on with the City Center project.

Unfortunately most advisors are currently saying that the rally of the stocks is quite premature and there is not concrete indication that the company is anywhere close to being out of the debt that they are currently in.

The MGM Company as a whole has approximately a 10 billion debt that will be due early in 2011. If business does not pick up and surpass projections it will be quite difficult for the company to stabilize and get back onto their feet like they have in the past.

Company reps were contacted for them to comment on the situation that they were in but there have been no responses from reps at this time.

The company and its shareholders are likely optimistic for some funds to be invested into their projects but the unfortunate truth of the economy remains the same and no one really knows for sure when businesses will be back to normal operating standards or when the economy is due to bounce back.

Some financial analysts are hopeful that things can be back to the way we were used to as early as the beginning of 2010.

MGM This Weeks Top Stock Pick

Monday, April 6th, 2009

Casino stocks have been all the talk in recent times and MGM is at the top of the list this week as financial analysts are recommending a “buy” call. The company is planning on liquefying certain properties in order to re-coup some of the billions in debt that have built up due to the struggling economy and the many construction projects that are still underway.

The MGM stock price is currently up to $6.18 which is up more than 50% over the numbers that the company saw last week and the weeks prior to this.

The casino company has hotels and casino all over the US as well as several other properties throughout major tourists destinations in other areas of the world.

The MGM company recently hired Morgan Stanley to help control the sale of two very lucrative hotels for the company these hotels and casinos being rumoured to be the MGM Grand Detroit and Biloxi’s Beau Rivage Casino.

The company hopes that this will help to pay off $13.5 Billion dollars in debt across the board as well as aid in some cushion for the $8.6 Billion dollar city center project that is still only footsteps underway and have a long way to go before nearing completion.

The budgets for the city center are an educated estimated amount; however experts are saying more money may be needed to complete this project since the budgets were made originally with this year in mind for completion.

MGM company reps say that the company is not happy to be losing properties but is certain that they will see a positive turn around sometime in the near future and will grow the company and pick up new business ventures along the way.

Good News for Las Vegas Sands

Friday, April 3rd, 2009

It is about time that the Las Vegas Sands companies have some good news to report to its stock holders and investors. For weeks and weeks we have been hearing nothing other than disappointing news out of Las Vegas based companies such as the Las Vegas Sands Corp, MGM, Wynn, Harrah’s and other players in the industry.

For the first time in a while the Las Vegas Sands is reporting that they will resume their planned Macau project to finish the hotel by the end of 2009. While this is just a preliminary plan for the company, executives are saying that they are hoping that many things will begin to turn around by the end of the year.

Just weeks prior to this news the hotel stock looked as if it was approaching bankruptcy nearing the $1 mark. The company is happy to see a bit of a rally along with other companies that are happy to be experiencing the same thing this week. The LVS stock is currently at $4.15 which is near the $4.40 mark when financial analysts gave it a buy rating say that they stock is likely to reach at least $9 this year.

LVS Corp will be happy to have all their projects around the world resumed and back to plans as they were going strong in 2007. The crash in the economy came as a surprise to many but some are saying that they are slowly picking up the pieces and hope to have most elements restored and thriving by 2010.