MGM: **Updated. Do you see the convergence? I made a mistake and forgot to draw in the convergence. I always use a Macd. I hope this makes the picture clearer. Refer to my other post for a detailed analysis of the price gap. Cheers.
Mgmresorts
MGM 2 scenarios for shortMGM has 2 possible scenarios:
1- break the rising wedge right now and retest the support
2- go up in the wedge until the top of the wedge which is strong resistance at the same time and then due to some fundamentals like delay in opening Vegas or quarter reports decrease. lets observe next 4hrs candles and then we can be more confident.
MGM Uptrend support and wedge pattern have broken to the downsidMGM has broken uptrend support. Daily RSI did not break the downtrend. It looks a good opportunity to short. Disclosure I bought puts and credit spreads last Friday.
MGM losing the houseHuge put sweep on 3/20 $36 puts, this looks good below 17.23. These options do not move much so if this does drop below, ITM options afew weeks out will be a safe trade to make, it wont be more than 50% but it will be less risky than most
MGM Resorts International Sells Its Most Prominent CasinoMGM Resorts International Sells Its Most Prominent Casino
Recently, the Las Vegas Strip’s business landscape experienced two dramatic developments. It is when the MGM Resorts International sold two of its most outstanding casino assets.
Moreover, Nevada gaming officials moved to bar a humiliated industry legend from doing business in Sin City.
MGM Resorts has sold the Circus Circus to casino entrepreneur Phil Ruffin, owner of the Treasure Island Hotel and Casino. It was purchased in deal value of $825 million, including $662.5 million in cash.
According to a news report, by the end of fiscal 2019, the transaction is expected to close.
In a partitioned deal valued at $4.25 billion, MGM indicated it would place the Bellagio into a shared real estate venture. This is with the Blackstone Group as a governing associate.
MGM will hold a five percent share in the deal. In addition, it will retain the functional control over the Bellagio for $245 million in rent.
In a statement, MGM Resorts CEO and Chairman Jim Murren stated, “This transaction confirms the premium value of our owned real estate assets, highlights the unique value of Bellagio as a premier asset in gaming and solidifies our status as a premier operator of gaming and entertainment properties.”
Assessment of Potential Real-Estate Sales www.financebrokerage.com
He also added, “We will use the proceeds from this transaction, together with the proceeds from the pending sale of Circus Circus Las Vegas, to build a fortress balance sheet and return capital to shareholders.”
The two combined transactions will let MGM have a net of more than $5 billion.
The casino chain has always been evaluating potential real-estate sales. This is as a means of paying down its responsibility and providing insurance during times of financial downturns, such as a recession.
According to the Las Vegas Review-Journal, the Bellagio and Circus Circus were two of the last three remaining properties on the Strip, where MGM possesses the underlying real estate.
The MGM Grand was the third hotel on the Strip.
So far this year, its stocks are up more than 10 percent. Meanwhile, MGM shares were flat after the trading on Tuesday.
