The Wall Street Journal points out that MGM is in full meltdown mode.
MGM Mirage reported third-quarter net income fell 67% and said it was suspending plans to build new casino properties in Las Vegas and Atlantic City because of the credit crunch.Predevelopment work has been done on the MGM Grand Atlantic City, but the company will halt development until the economy and capital markets "are sufficiently improved," said Chairman and Chief Executive Terry Lanni.
We sort of thought that when Kirk Kerkorian said he was packing up his automotive (ahem) bet in order to focus on MGM (he's the largest shareholder) it was just a cover story to save face. Well, maybe MGM really was in need of the Kirk's full attention after all.
It is not a good time for mega-resorts (Kirk is the King thereof). Gas prices alone make Las Vegas an even more annoying destination than usual.
Our crankiness about Kirk aside, we are rooting for him. If he prevails it would sort of be like your grandfather (or great grandfather, perhaps) taking over RJR.
MGM Mirage Suspends Casino Projects as Profit Falls [The Wall Street Journal]
Posted by guest , Oct 29, 2008 1:53PM
stupid bastards!!!!
Posted by guest , Oct 29, 2008 2:00PM
Hopefully Najarian put his money where his mouth was when it was ~ 15 and he pimped it to the sheep on CNBC.
I keep confusing Fast Money with The Shield. Blald guy named Mackie who hangs with criminal Armenians.
Posted by IA , Oct 29, 2008 2:05PM
Gas prices? Seriously? You mean the gas prices that have fallen $1/gallon in just the past month?
Posted by guest , Oct 29, 2008 2:38PM
I was just in Detroit for a client meeting, and I stayed at the MGM Grand Detroit, which I must say is one of the most beautiful casinos/hotels I've seen.
Perhaps Kirk finally learned his lesson and will stick with a business he knows and stay away from the auto business.
Posted by guest , Oct 29, 2008 2:41PM
detroit ?? are you in the mafia?
Posted by Anal_yst , Oct 29, 2008 3:50PM
All those super-lux condo/time share projects on/around the Strip are so royally effed, MGM's included. Not that there's much reason to in the next year or two, but soon they'll be available for a song.
Ditto for south florida properties. Beach-front (or across the street, whatever) condos can be had for as little as $200/sqft and its still going down.
Unsold inventory down there (and they're still building!!!) is ridiculous.
Posted by guest , Oct 29, 2008 3:53PM
up 40% today alongside your LVS buddy, maybe all they needed was a shout out from the Journal to get things going!
Posted by guest , Oct 29, 2008 4:06PM
@7 you have your ass so deep in your brain that you think with your ass