SUN: Racing's media makeover paying off

[philcski]

Originally Posted by Cannon Shell

The arent that far from profitability. Ok.

They have already marked the condo prices down 30% and they had as many people walk away and give up their deposits as people who bought places. They have to provide all the financing for the few people that do want to buy. Thier centerpiece hotel opened and is 23% off the rest of the strip in occupancy. They have a $500 million dollar construction expense dispute.

So virtually no one is buying their condos. As many people walked away as bought. The few that did buy cant get financing anywhere else. No one is staying in their hotel. And you claim that they are close to profitability. I suppose that MGM stock should be a strong buy that $14 then? How much MGM stock do you own since you seem to be closing your eyes and wishing that all the bad news clouds would disappear?

I am not saying that City center was the entire reason that the stock tanked but the fact is that companies flush with cash will operate in a different plane than those who are having losing quarters.

I've never been a proponent of the project, because I think it's far too ambitious in terms of residential plans in the current (new) economy especially given their debt load when the project started- and on top of that siphons off business from their premier product next door, but the fact is they will be profitable at 75% occupancy at their current room rates based on their most recent 10Q and independent research. So- they are in fact close to profitability.

[Cannon Shell]

Originally Posted by philcski

I've never been a proponent of the project, because I think it's far too ambitious in terms of residential plans in the current (new) economy, and on top of that siphons off business from their premier product next door, but the fact is they will be profitable at 75% occupancy at their current room rates based on their most recent 10Q and independent research. So- they are in fact close to profitability.

The hotel being at 75% capacity makes the entire project profitable? That seems impossible.

[philcski]

Originally Posted by Cannon Shell

The hotel being at 75% capacity makes the entire project profitable? That seems impossible.

http://finance.yahoo.com/news/CityCe....html?x=0&.v=5

Bottom of the article.

Yes- 75% means they are in the black operationally, obviously they have to have some pretty robust years to recoup the cost of the project.

[Cannon Shell]

Originally Posted by philcski

http://finance.yahoo.com/news/CityCe....html?x=0&.v=5

Bottom of the article.

Yes- 75% means they are in the black operationally, obviously they have to have some pretty robust years to recoup the cost of the project.

Yeah that just means they arent losing money on the operation of the hotel though. The residential side has to be a bloodbath and the debt service on the $8 billion dollars it cost to build it has to be massive.