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Howard Jay Klein  

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  • There's Still Time To Buy A Ticket On The MGM Bullet Train Before It Leaves The Station [View article]
    Thanks all for great comments. I think we all agree that MGM as now constituted is not poised for a big move unless they take one of the directions indicated in my article. That basically was my point. They are just sitting there pregnant for a big move IF they make the move. My view also is that the Kerkorian piece might be the catalyst here if they continue to shuffle around and don't move. At some point, even though the Tracinda guys are in sync with management, they're going to get antsy and start making noises about selling that block to someone like Ican to stir the pot.
    Watch for the signs in my article over the next 90 days.
    Jul 28, 2015. 07:57 AM | Likes Like |Link to Comment
  • There's Still Time To Buy A Ticket On The MGM Bullet Train Before It Leaves The Station [View article]
    Agree--the City Center was an edifice complex excercise of major proportions by MGM management. Wynn's legacy properties in LV are without doubt the best of breed on the strip. You don't build these places on research, forecasts, focus groups alone. There is a special instinct I've seen through out my gaming career that resides in very few casino developers toolkit. Steve Wynn is one of the very few who have demonstrated over and over that he can build buildings better than anyone else. And its because of the buildings that rolled into MGM after Kerkorian outmaneuvered Steve and forced his sale, that the company should be valued a lot higher than the market says its worth.
    Jul 27, 2015. 03:11 PM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    My guess: Totally correct. When LVS earnings call is done Sheldon will be as ebullient as ever no matter what the downside may be--or even flat. Wynn tends to be more muted in his statements. Either way what this market is not yet understanding about these two stocks and these two men is that the magnetic attraction of the merger I suggested or the acquisition you did will indeed produce the monster deal of the industry making the Global Apollo deal for Caesars back in '08 look just as dumb as it turned out to be.
    Jul 22, 2015. 08:05 AM | Likes Like |Link to Comment
  • Why Churchill Downs Is Overpriced At $131 And Could Fade In The Stretch [View article]
    Bravo Vince--you nailed it. Totally correct. The core issue here is perception by a genral market that is not always thinking on its feet just knee-jerking to events or what they perceive to be what the so-called "smart guys" in the hedge funds are buying. For my money I consider hedge funds fine, but in effect, they are wholesalers of securities. They buy in bulk at price A, use their collective bullishness to stimulate interest B, then here comes the dumb money in so they can C softly back pedal and reduce positions, taking the dumb money off the table. As I wrote Churchill's a good company but the rationale for its price totally escapes me.
    Jul 21, 2015. 09:39 AM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    My guess at this point: Caesars Palace is the flagship now and must remain so in any post-bankruptcy configuration. No doubt the holding company I envisioned could easily finance the purchase well into the billions. However, without that iconic property, the company loses whatever brand value it has big time. But as you suggest, LVS would have numerous options in LV. MGM would be a buffet and I wouldn't be shocked if one or more of their signature properties would be on offer in an effort to quicken the pace of deleveraging without impairing Murren's ambitions to diversify into a multi-faceted entertainment company.
    Jul 20, 2015. 11:59 AM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    None in the US according to my legal friends. The Chinese are less clear but remember they are a Communist govt, everything there is a monopoly. Actually they'd probably understand it better than we'd be inclined to think here.
    Jul 19, 2015. 06:05 PM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    If Wynn drops to the $80 range you are correct but I truly believe LVS wouldn't be the only suitor. It would trigger a battle royal led probably by the Carl Icans of this world and clearly bid up the stock. If however SA could buy it at that price, it would be the biggest gift imaginable to shareholders to both companies.
    Jul 19, 2015. 11:15 AM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    You are correct of course. Gold rules since the Neolithic Age for sure. My idea for the holding company structure is a way to harness two massive egos to the common benefit of both. Regardless of the disparity between the equity chunks I still think the management plus here is so huge so as to trump the temptation for SA to bully the situation. This to me is analogous to an exec management team where the distribution of options are always uneven depending on position. The disparity between the numbers held by the CEO for example, are usually wildly fatter than those of the best c-level operating executives. And in good companies this doesn't make a difference as long as everyone makes money. And everyone recognized that each member has made a distinct contribution to the success of the operation. Here its clear that SA and SAW both have unique talents that when blended will make them both much richer. And for these guys, more than plenty of ego tripping in the media to go around for both.
    Jul 18, 2015. 08:13 AM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    All good points but I really believe that these two guys together make three. Their strengths complement each other immensely and their weaknesses shore each other up as well. And no matter what you may have heard otherwise, my sources totally believe they can operate under the holding company I suggested and lets put it this way, they should know.
    Jul 17, 2015. 03:10 PM | Likes Like |Link to Comment
  • Chinese stock market decline seen impacting Macau VIP revenue [View news story]
    Strongly disagree with Ms. Tang's conclusion. I've found over 25 years marketing to Asian players for my US casinos that their attitudes toward the stock market tend to be cynical in that there is widespread belief that investing in stocks is just another form of gambling.. There are also skeptics who believe its a luck /timing thing and cynics convinced all markets are rigged in one way or another. So they tend to be fatalistic about the gyrations of the stock market even when they're on the losing end, as is often the case in the casino. The wealth effect may have some impact on average bets short term yes but I'm convinced its not great. To the literally thousands of Asian players my people have dealt with over 25 years my sense is that they see the stock market as a hobby--but the casino is a religion. We should get a better sense of that in the August/ September Macau numbers.
    Jul 16, 2015. 03:06 PM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    jensan96: Totally on board with your view. And I would add this:The merged company I envision would have a critical mass of revenue, surplus cash and access to whatever additional capital may be needed to expand both in gaming and in non-gaming resorts. And they would easily break into the rarified air zone of the share price you suggest.
    Jul 14, 2015. 02:14 PM | Likes Like |Link to Comment
  • Fantasy Sports Sites Poised For IPOs In 2016 May Have Amaya Lying In Wait For Them [View article]
    Thanks for your comments. If you think fantasy sports isn't gambling then I have a bridge across the East River I'd like to sell you. The consensus among people in the industry and observing it is this: When there are winners and losers in a game that nobody can really forecast the outcome on, brother its gambling. Amaya may have their problems but their dominance in the space remains. Sooner or later, seeing the barriers to legalization here, mere common sense tells you they're going to move into fantasy sports. The real fantasy about fantasy sports is that its not gaming. Just as you make a living at it--and good for you--there are horseplayers who make a living at the track as well. You can spend hours "skillfully picking" a quarterback with a solid stats that tell you he's going to throw for x number of yards in a given game. Then the guy has an "off day" and throws 3 interception, or injures his thumb, or takes a brutal hit and is taken out of the game. Can't tell you how many so called skill players who regularly bet football I know who wound up working three jobs to pay off the bookmakers.
    Jul 14, 2015. 12:06 PM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    Totally agree. But I'm a bit more bullish than the $180-$200 range though I strongly support its logic. The reason I think is the performance we will see out of Wynn Everett and the expanded Sands Bethlehem presence in the 2018 out years will add immense power and balance to EBITDA. And the cash surpluses might be a tad bigger for new ventures but overall I think you've pretty much nailed the vision I see for this initiative. In short while I agree with some commenters that there are complexities and difficulties in this merger, I maintain that the underlying logic of this combination will in the end trump any potholes. I think the hedge funds would see a huge upside despite the family holdings because the numbers work so well for everyone in the deal, and most importantly salivate over the prospect of Wynn and Sheldon teaming to make very savvy acquisition/ investment decisions.
    Jul 14, 2015. 11:01 AM | Likes Like |Link to Comment
  • How And Why A Las Vegas Sands/Wynn Resorts Merger Could Be The All Time Blockbuster In The Gaming Space [View article]
    Thanks all for the comments--all appreciated. Here's my view:
    1. Jense96's point is well taken. I do think Elaine's holding can be taken out because she and her family would stand to make a ton. I also think its not crazy to think that a new holding company board controlled by the two guys might agree to giving her some role going forward in exchange. I'v met her years and years ago.She's a very bright woman who wants to remain relevant in the company more as a contributor to what clearly would be a new enterprise that would be the most exciting in gaming. She'd walk away a bigger billionaire than she is now.As to the Asia subs, the government etc. I have always found that the stiffest opposition can be overcome because of bottom line dollars and I also believe the Chinese govt is not as rigid as you may believe. I know that for certain.The deal would have to jump over govt hoops for certain but as we know Macau is no place for wannabees. There are big, viable competitors there and the govt knows it. As to Jim Cramer's comment: Agree--lots of people don't take his bluster shtick very seriously but he has a large audience. My point was that sometimes his commentary does move stocks but in this case it did nothing--as we all suspected but L&B used it to bolster their case. It was a bit dopey of them but there it is. As to the valuation: $140 to $150 with a $5 dividend in the resultant shares sound definitely in the ballpark to
    me. My numbers move on from there to a range of $200-$225 and a dividend flow that could reach $6 depending on how savvy their acquisitions are. And with these two guys I am convinced they would be tremendous.
    Jul 14, 2015. 07:18 AM | Likes Like |Link to Comment
  • Macau stocks higher amid smoking news and China rally [View news story]
    Macau bears: Please don't misconstrue this comment as see, I told you so months ago that the smoking problem was a bit of a chimera. But I have been saying for months exactly what has happened, namely once the demands of "face" have been satisfied by govt offcials, some kind of comprimise will come down that will not be as draconian as some believed. Look for a further flow of some moderating talk on all Macau related issues. And then watch the cigars explode in the face of the bears.
    They want to do the right thing about smoking and thats good. Its a real health issue. But if one thing was proven by the China stock market turmoil of the past week is that when it comes to cash---they'll back off a bit and maybe "butt out"--terrible pun intended.
    Jul 13, 2015. 02:24 PM | 1 Like Like |Link to Comment
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