Las Vegas Sands Goes KOBATA (NYSE: LVS) (NYSE: WYNN) (NYSE: NFLX)

NEW YORK - Las Vegas Sand Corporation (LVS) reported record revenue and record profit for their fiscal third quarter. Allan Edwards the CEO of The Markets Are Open said "LVS just went KOBATA." KOBATA is Wall Street lingo for knocked it out of the ball-park above top anticipations. Edwards continued "KOBATA is a rare term seldom used on the street, dare I whisper that LVS has just hit the KOBATA nail on the proverbial head." LVS reported revenues of $1.91 billion, with net income of $268 million, $168 attributable to common shareholders which is 21 cents a share. Adjusted EBITDA which is earnings before income tax and depreciation came in at $335 million. The reason net income attributable to common shareholders is significantly lower than net income has to do with LVS's obligations for preferred shares and non controlling interests.

Shares are currently up 10% in after hours trade which is from the time the markets close until 8 PM where shares continue to trade usually at a lower volume. This rally has seeped over into fellow casino operators, Wynn Resorts and MGM Resorts International whose shares are up 4% and 2% respectively.

Edwards was asked if he had any closing remarks he replied "LVS is starting to remind me of Netflix, the company's market cap is approaching record levels, the only difference is I like it more, but I would be very cautious here."

MGM Is Still A Mirage (NYSE: MGM)

Las Vegas- MGM shares have sunk 22% sine reaching a high of $14.10 on October 12 after reports that more people were visiting Las Vegas. Shareholders are concerned that MGM has announced the sale of their 50% ownership in The Borgata Resort in Atlantic City and have pre-announced another quarterly loss expected in quarter three. MGM also announced they have once again impaired the value of the City Center which is the largest privately funded construction project in the history of the U.S.

The pre-announcement of its quarter three loss likely did not come as a surprise to shareholders but there were several other surprises in the report. Investors should be concerned about the value MGM received for the Borgata which is substantially below the book value. Allan Edwards the CEO of The Markets Are Open estimated the fair market value of MGM's Borgata stake to be $400 million for MGM's 50% stake but MGM will only receive approximately $250 million for the sale. In 2008 at the beginning of the recession MGM sold Treasure Island a smaller hotel located on the Las Vegas strip for $775 million. Even though the Borgata is in Atlantic City and not Las Vegas one would have expected similar or higher price regarding the value of the Borgata as compared to Treasure Island. Shareholders also are looking into another secondary offering which will dilute existing shareholders.

With MGM's blunder on the sale of the Borgata it can either be determined that management made a large mistake or the company is facing financial stress.

To see the full MGM report Click Here

It's Not Always Sunny In Vegas (NYSE:MGM)

Las Vegas- MGM shares sunk 11% on Wednesday after the company announced a secondary offering and pre-announced Q3 results. A secondary offering is when a company issues stock after its initial public offering (IPO).

MGM expects to lose 71 cents a share in Q3. The reasons for the larger loss than expected can be attributed to a further impairment on the MGM City Center for approximately 100 million dollars. Catching investors by surprise is the $80 million impairment that will occur on the sale of the Borgata which MGM has a 50% stake in. Allan Edwards the CEO of The Markets Are Open estimated the fair market value of MGM's Borgata stake to be $400 million, but MGM will receive approximately $250 million for the sale. In 2008 at the beginning of the recession MGM sold Treasure Island a smaller hotel located on the Las Vegas strip for $775 million. Even though the Borgata is in Atlantic City and not Las Vegas one would have expected similar or higher price regarding the value of the Borgata as compared to Treasure Island.

With MGM's blunder on the sale of the Borgata it can either be determined that management made a large mistake or the company is facing financial stress.

To see the full MGM report Click Here