Did a pitch to my university’s business club about MGM stock and it is a no go.
Reasons are ---
-New supplies are going to pressure pricings
-CityCenter may not be able to fulfill its covenant, leading to bankruptcy of CityCenter
However, a massive recovery in LAS VEGAS is the only reason that may boost MGM stock way up.
If REVPAR or ADR (room rates) goes up 10%, then MGM has huge upside.
Otherwise, good bye MGM.
It’s a no by STERNIES (Stern Business School Kids). They don’t like gambling on MGM stock.
BRILLIANT DEBT play though. BUY MGM Bonds, not stocks.
I am cancelling buy orders for MGM for now. I will only be convinced of MGM’s recovery if VEGAS shows some potential of a possible recovery.
NO TO MGM
3 comments:
Really!!!!! Ok, let's short this stock right now.
hi tolits, I don't dare to short this stock given the crazy upside if anything good happens... This is too huge a gamble! I will just stay out of this company.
the cosmo opening right between cc and bellagio might be the last nail in the coffin, I was just at cc ghost town, smart move to avoid
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