Seems that debt stricken companies (unfortunately in some cases even sovereigns) subdued in strength to generate cash and support creditor payments are having a tough time. One interesting example is MGM which paired in a glut expansion that is hard to sustain. Pairing up with Dubai World in Las Vegas City Center does not sound like a winning strategy. It will be hard to maintain their poker face with 15B in LTD on their balance sheet and with a credit line maxed up by bankers; the only thing they can to is to keep keep rolling the dices–unfortunately, the odds seem to be against the house this time–
Shorted 1500 shares this week.
