HorseJeff
HorseJeff
Joined: Feb 21, 2012
  • Threads: 12
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November 12th, 2012 at 6:16:18 AM permalink
Completely fwiw: This morining on Mad Money on CNBC, investment guru Jim Cramer was asked about buying Caesars Entertainment stock. If you've ever wathced MM you know his lightning-quick style of answering questions. His response to whether or not CZR ($5.14) was a good invetment was about 3 seconds long:"No. Terrible stock; never should have gone public."

Jim is not the last word in investment advice but he's right far more often than he's wrong. And the value of CZR shares certainly doesn't affect my decision whether or not to increase my bet with a count of +4.

Again, simply fwiw.

--Jeff
The only thing more pathetic than watching a gambler who's afraid to lose is watching a gambler who is afraid to win. And I've seen plenty of both.
AZDuffman
AZDuffman
Joined: Nov 2, 2009
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November 12th, 2012 at 6:20:15 AM permalink
Should have been broken up for parts after the LBO.
All animals are equal, but some are more equal than others
odiousgambit
odiousgambit
Joined: Nov 9, 2009
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November 12th, 2012 at 1:10:37 PM permalink
Quote:

Terrible stock; never should have gone public



Maybe so, but the market should have by now factored all considerations into the price.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
Pokeraddict
Pokeraddict
Joined: Feb 21, 2012
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November 12th, 2012 at 1:18:49 PM permalink
Quote: odiousgambit

Maybe so, but the market should have by now factored all considerations into the price.



One of two things happen by 2015 when about 20% of their $21 billion debt matures:

1) They sell many of their properties to pay the billions in bonds due

2) They file for bankruptcy

They do not even make enough money to service the debt and their ability to borrow is difficult. They already sold a good chunk of the WSOP's interactive division. They have sold the St Louis property and certainly there are others for sale behind the scene. I don't think the likely severe change in business plan is factored in to the $654 million value given to the company by today's closing price. The debt is higher than the enterprise value and the book value per share is $.27. The company has lost over $1 billion in the past year, most of it is just the interest on the debt.

If you buy this stock the you should expect to lose all of your money in the next 3 years unless by some miracle Las Vegas tourism and local casino markets come exploding back.
JohnnyQ
JohnnyQ
Joined: Nov 3, 2009
  • Threads: 234
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November 12th, 2012 at 5:37:43 PM permalink
So it will be interesting to see if their aggressive
marketing helps or hurts ( Race to Rewards
comes to mind ).
Like the castle in its corner In a medieval game; I foresee terrible trouble And I stay here just the same
Boz
Boz
Joined: Sep 22, 2011
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November 12th, 2012 at 6:56:49 PM permalink
Yet the same man (James Cramer) rated this a buy in April. What has changed? Nothing has changed, so once again, it seems like Uncle Jimbo is following the pack on this stock. For once Jimmy, give us something to actually risk money on, or are you as the disclaimer says, for entertainment only???

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