Tag Archives: Kirk Kerkorian

Business, Finance, Occupation & Industry

Why Kirk Kerkorian Is Important to MGM Resorts

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By Travis Hoium, The Motley Fool

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News yesterday that Kirk Kerkorian has intentions to raise his stake in MGM Resorts isn’t something investors should sweep under the rug before remembering what he has meant to the company over the years. Kerkorian isn’t as well known as Steve Wynn of Wynn Resorts, or Sheldon Adelson of Las Vegas Sands, but he has played a similar visionary roll in MGM‘s history.

Kerkorian began his dealings in Las Vegas in 1962 when he bought the land that Caesars Entertainment’s flagship casino Caesars Palace sits on. When he sold the land to the company, he ended up building MGM Grand, and naming it after the MGM movie studio, which he also owned. Decades later, Kerkorian was behind the merger of MGM and Mirage, which was the company Steve Wynn built, bringing the Mirage, Bellagio, and Treasure Island into MGM.  

If Kerkorian wants to increase his 18.6% stake in the company, he must be bullish on both Las Vegas and the economy as a whole.

Bullish on economy
Kerkorian last tried to up his stake in MGM in 2006 when the economy and markets were going bonkers. After the financial collapse, he backed off MGM, but now that he’s on board, I think it’s a strong sign that one of Las Vegas‘ biggest investors is bullish on the economy as a whole and, therefore, Las Vegas.

Kerkorian also has seats on the board, meaning he has insider access to MGM‘s financials. Insider buying is often a very bullish sign for a stock, because insiders know things about a company’s operation that goes beyond what outside investors can know.

What this means for gaming stocks
Before you go out and buy a basket of gaming stocks, it’s important to understand the difference between MGM and other companies. Wynn and Las Vegas Sands are Asian-centric so, if Kerkorian is bullish on MGM, it doesn’t really mean anything for them. Caesars is in a similar position to MGM with high exposure to Las Vegas, but instead of having exposure to Macau, like MGM does, it has exposure to regional gaming in the U.S. If you’re bullish on Las Vegas, MGM is the way to go, not Caesars.

A deep dive into MGM Resorts

When MGM Resorts began constructing the CityCenter in Las Vegas, it was an audacious plan that seemed like a sure bet with its prime location in the center of The Strip. But Las Vegas hit a rough patch during the Great Recession and has yet to fully recover, so MGM has since turned its attention to a new market in Macau. This Chinese gaming enclave now holds the key to the company’s future, and a new resort on Cotai may relieve the company from crushing debt. For expert analysis on whether this former high-flying stock can regain its form on the back of a growing presence in Asia, you’re invited to check out The Motley …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Kirk Kerkorian Wants to Increase Stake in MGM Resorts

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By John Divine, The Motley Fool

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Ninety-five year-old billionaire investor and mogul Kirk Kerkorian let his continued interest in the struggling casino MGM Resorts be known in a filing with the SEC yesterday. Kerkorian, whose net worth Forbes puts at $3.3 billion. already owns 18.6% of MGM‘s stock through Tracinda Corporation, a private investment company in which he is the sole shareholder.

Wednesday’s 13D/A filing discloses Tracinda’s intentions to increase its stake in the casino to up to 25%, though whether it will end up with that much of the company depends on “market conditions.” Per MGM‘s trading policy, Kerkorian isn’t even allowed to buy additional shares until the third trading day after MGM‘s next quarterly earnings release. With earnings not slated to be announced until Friday, May 3,, Kerkorian won’t be able to add to his 91 million share, $1.2 billion stake in the company until at least Wednesday, May 8, when market conditions could have dramatically changed from where they stand today.

MGM shares were up as much as 7% on the news. 

The article Kirk Kerkorian Wants to Increase Stake in MGM Resorts originally appeared on Fool.com.

Fool contributor John Divine has no position in any stocks mentioned. 
You can follow him on Twitter

@divinebizkid

and on Motley Fool CAPS

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The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance