pacomartin
pacomartin
Joined: Jan 14, 2010
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May 13th, 2010 at 4:32:21 PM permalink
The recreational parachute business survives just fine, and it has to deal with several grisly deaths often of young people every year that are all judged to be caused by human failure of some sort.

This ride is not dangerous. Bungee jumping if not done correctly can be dangerous. This ride is only the illusion of danger. My comments previously have to do with nuisance lawsuits. I don't genuinely think there is an ounce of real risk in this ride.

There will be more people hurt on roller coasters this year, simply because 100 million people will ride a roller coaster. Somebody will do something stupid. Nobody is going to get hurt out of the 100 people a day who do this sky jump.
FleaStiff
FleaStiff
Joined: Oct 19, 2009
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May 13th, 2010 at 4:47:50 PM permalink
I don't know if the "crew" related to ticket sellers and crowd control or reservations personnel.
If it referred to operational personnel, good for them! they didn't try to open up with excessive overtime or poorly trained personnel.

Anyway, the SkyJump will make headlines and memories and photo opportunities, but it won't pull in all that many people and most who use it will stay elsewhere.

Most of the developments in Vegas are really taking place on Wall Street anyway. Move stock price or per share earnings and get a zillion dollar bonus, move some fresh furniture into a room and all you get is a sore back.
pacomartin
pacomartin
Joined: Jan 14, 2010
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May 14th, 2010 at 7:02:56 AM permalink
Quote: FleaStiff

Most of the developments in Vegas are really taking place on Wall Street anyway. Move stock price or per share earnings and get a zillion dollar bonus, move some fresh furniture into a room and all you get is a sore back.



When Goldman Sachs bought this company they valued the Stratosphere and the vacant 17 acre lot next to it at $640 million. What kind of commissions did that bring? Last quarter it earned a gross revenue of $36.7 million dollars on an average daily room rate of $43.39.

The sky jump may bring a million dollars gross out of which they have to pay crew and maintenance costs.
pacomartin
pacomartin
Joined: Jan 14, 2010
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May 14th, 2010 at 11:19:43 AM permalink


This graph provides a 6 year revenue history for the company. The original 3 casinos were all acquired by Carl Icahn over 10 years ago. He was still in the process of renovating the recently acquired Aquarius Laughlin (formerly the Flaming Laughlin) when he began negotiations to sell to Goldman Sachs.

The company was sold as a group and formerly had an appraised value of just over $300 million. When it was sold for $1.3 billion Goldman Sachs attached a dollar amount on each property to back up the $1.1 billion dollar loan. The values are indicated on the chart. The vacant lot by the Stratosphere is 17 acres, and was considered primary for future development.

If possible the chart traces revenue for the original three properties. The Laughlin Aquarius is the only one that increased revenue last quarter.

The dotted red lines are projections based on a document that was leaked to the web that showed the basis for the sale. Obviously they didn't make it even for the first quarter of the sale.

The massive losses over the last 2 years means that Goldman Sachs has been doing some very creative financing. I am not sure I understand it, but somehow I think they shifted the losses to the company as a whole so that they could exploit the bailout money.

I put the blue swooping arrow to give you an idea of the statistic quoted in the press release. The executives pointed out that the percentage drop in 2010 (1st quarter) was not as bad as the percentage drop in 2009. They also pointed out that revenue in Laughlin had gone up. Most of the rest of the press release was about Skyjump and the new furniture.

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