Comments on: Portfolio Update http://blog.sterniag.com/2009/12/11/portfolio-update-2/ where the weekend starts Thu, 02 Sep 2010 22:56:19 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: ken http://blog.sterniag.com/2009/12/11/portfolio-update-2/comment-page-1/#comment-19 ken Fri, 11 Dec 2009 23:00:31 +0000 http://blog.sterniag.com/2009/12/11/portfolio-update-2/#comment-19 That's fair, what kind of valuation metric are we looking at though? Since it doesn't seem they'll have difficulty servicing debt at least for a few years, what's a fair value for the equity holders? That’s fair, what kind of valuation metric are we looking at though? Since it doesn’t seem they’ll have difficulty servicing debt at least for a few years, what’s a fair value for the equity holders?

]]> By: Nicu http://blog.sterniag.com/2009/12/11/portfolio-update-2/comment-page-1/#comment-18 Nicu Fri, 11 Dec 2009 19:00:13 +0000 http://blog.sterniag.com/2009/12/11/portfolio-update-2/#comment-18 They have a credit facility on which they mostly relied to flip things over. The credit facility will expire in 2011 however. I am not saying that MGM will go down, it's just that equity is overpriced as last claim on revenues. They have a credit facility on which they mostly relied to flip things over. The credit facility will expire in 2011 however. I am not saying that MGM will go down, it’s just that equity is overpriced as last claim on revenues.

]]> By: ken http://blog.sterniag.com/2009/12/11/portfolio-update-2/comment-page-1/#comment-17 ken Fri, 11 Dec 2009 10:47:12 +0000 http://blog.sterniag.com/2009/12/11/portfolio-update-2/#comment-17 Agreed that the link with Dubai is not attractive although management seems to have no qualms about it since they just struck another deal together, however do you know how much of the debt is coming current over the next 6 months (since this seems to be a bet on them having problems rolling over LTD)? Also just glancing at their balance sheet, they were able to flip over 14.356 billion in maturing debt when the markets were in a lot more turmoil than they are now. That seems to remove a lot of the concern that they won't be able to do so moving forward.. although I'm not predicting great things for casinos something drastic has to happen for an operator as big as MGM to go down. Agreed that the link with Dubai is not attractive although management seems to have no qualms about it since they just struck another deal together, however do you know how much of the debt is coming current over the next 6 months (since this seems to be a bet on them having problems rolling over LTD)?

Also just glancing at their balance sheet, they were able to flip over 14.356 billion in maturing debt when the markets were in a lot more turmoil than they are now. That seems to remove a lot of the concern that they won’t be able to do so moving forward.. although I’m not predicting great things for casinos something drastic has to happen for an operator as big as MGM to go down.

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