During the IPO season Francis Gaskins, editor of IPOdesktop.com, regularly appears on CNBC TV, Bloomberg, thestreet.com & other financial cable channels. On the day of the Visa IPO he appeared on four cable TV financial shows including Bloomberg & CNBC. Over the past five years he has been quoted over 500 times by such financial media as the Wall Street Journal, Bloomberg, Reuters, Associated Press, USA Today among others. Those quotes are available at IPOdesktop.com. His varied personal interests include violin playing. For example, he is concertmaster of the Palisades Symphony. He also holds an MBA from Harvard Business School (finance) and an AB from Princeton University (economics). http://www.facebook.com/profile.php?id=100001524943912 IPOdesktop http://seekingalpha.com/author/ipodesktop/instablog http://seekingalpha.com/instablog/393119-ipodesktop/130700-why-medley-capital-s-ipo-mcc-priced-below-range?source=feed 130700
Just as $13.50 was too high, $11 was too low on a valuation basis.

At $13.50 MCC was trying to get a 1.8% premium to net asset value.  That didn't work because typically Business Development Corps (BDC's) don't get a premium to net asset value. 

For example, Golub Capital (GBDC), THL Credit (TCRD) and Gladstone Cap (GLAD) were selling yesterday at discounts to net asset value of 0%, -2% and –2% respectively.




Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> Thu, 20 Jan 2011 15:07:58 -0500
Just as $13.50 was too high, $11 was too low on a valuation basis.

At $13.50 MCC was trying to get a 1.8% premium to net asset value.  That didn't work because typically Business Development Corps (BDC's) don't get a premium to net asset value. 

For example, Golub Capital (GBDC), THL Credit (TCRD) and Gladstone Cap (GLAD) were selling yesterday at discounts to net asset value of 0%, -2% and –2% respectively.




Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
]]> gbdc tcrd glad IPO Analysis http://seekingalpha.com/instablog/393119-ipodesktop/110798-zogenix-zgnx-ipo-interesting-new-product-needs-to-reduce-sg-a?source=feed 110798 Nov 15wk IPO calendar

Zogenix (ZGNX) $78mm IPO
with a market cap of $299mm at the prince range mid-point of $13
Scheduled for Wednesday, November 17, 2010

ZGNX Valuation Metrics

CONCLUSION
. Interesting company successfully introducing a new product that generated $15mm in sales since introduced in January of 2010
. However, SG&A expenses ballooned to an annual run rate of $54mm for the nine months ended September 30, 2010.  The nine month loss was $51mm
. Zogenix is worth watching if it in fact IPOs and reduces SG&A expenses so that breakeven is in sight

BUSINESS
Products for the treatment of central nervous system disorders and pain, especially migraine and cluster headache
. First commercial product, Sumavel™ DosePro™ (sumatriptan injection) Needle-free Delivery System, was launched in January 2010.

EXPERIENCE TO DATE
Prescription Trends.
Monthly prescription data shows that more than 11,500 aggregate prescriptions of Sumavel DosePro have been dispensed and that monthly total prescriptions have increased in each month since launch. In June 2010, more than 3,000 total prescriptions were dispensed and nearly 24% of total prescriptions were classified as refill prescriptions.
Prescriber Base
Weekly prescribing data shows that more than 4,300 physicians have prescribed Sumavel DosePro. In each month since launch, the number of repeat prescribers for Sumavel DosePro has increased. In addition, 32% of Sumavel DosePro prescribers had not written a prescription for needle-based sumatriptan injection in the previous 12 months and an additional 35% of prescribers had written, on average, less than one prescription per month for needle-based sumatriptan injection.
Patient Dynamics.
Analysis of patient data indicates that approximately 37% of patients filling a Sumavel DosePro prescription were new to the triptan market (i.e., had not filled a triptan prescription in the prior 18 months), 34% had active prescriptions for Sumavel DosePro and at least one additional triptan and 17% of patients had converted to Sumavel DosePro from another triptan. The remaining 12% of patients were continuing users of Sumavel DosePro. Importantly, of the patients who converted from another triptan, 75% converted from oral triptans, including tablets and fast melt formulations. (Source® Lx APLD January 2010 – June 2010)
Patients’ Experience
Patients’ experience with Sumavel DosePro has been positive based on feedback provided via the Connects Program from Infomedics. This internet-based program invites patients that received a Sumavel DosePro prescription to register online at the time of their prescription and then provide feedback after they have used the product to treat a migraine episode. Through August 7, 2010, 877 patient respondents who had used Sumavel DosePro have rated their satisfaction with Sumavel DosePro at an average score of 7.1 versus 5.5 for their prior migraine medication (9-point satisfaction scale, with 9 being “very satisfied”)

USE OF PROCEEDS
$71mm
.  $35mm to fund Phase 3 clinical trials and related development activities for ZX002
. $35.4mm to fund the ongoing commercialization of Sumavel DosePro and for working capital and other general corporate purposes.

ZGNX Valuation Metrics


]]> Sat, 13 Nov 2010 02:36:42 -0500 Nov 15wk IPO calendar

Zogenix (ZGNX) $78mm IPO
with a market cap of $299mm at the prince range mid-point of $13
Scheduled for Wednesday, November 17, 2010

ZGNX Valuation Metrics

CONCLUSION
. Interesting company successfully introducing a new product that generated $15mm in sales since introduced in January of 2010
. However, SG&A expenses ballooned to an annual run rate of $54mm for the nine months ended September 30, 2010.  The nine month loss was $51mm
. Zogenix is worth watching if it in fact IPOs and reduces SG&A expenses so that breakeven is in sight

BUSINESS
Products for the treatment of central nervous system disorders and pain, especially migraine and cluster headache
. First commercial product, Sumavel™ DosePro™ (sumatriptan injection) Needle-free Delivery System, was launched in January 2010.

EXPERIENCE TO DATE
Prescription Trends.
Monthly prescription data shows that more than 11,500 aggregate prescriptions of Sumavel DosePro have been dispensed and that monthly total prescriptions have increased in each month since launch. In June 2010, more than 3,000 total prescriptions were dispensed and nearly 24% of total prescriptions were classified as refill prescriptions.
Prescriber Base
Weekly prescribing data shows that more than 4,300 physicians have prescribed Sumavel DosePro. In each month since launch, the number of repeat prescribers for Sumavel DosePro has increased. In addition, 32% of Sumavel DosePro prescribers had not written a prescription for needle-based sumatriptan injection in the previous 12 months and an additional 35% of prescribers had written, on average, less than one prescription per month for needle-based sumatriptan injection.
Patient Dynamics.
Analysis of patient data indicates that approximately 37% of patients filling a Sumavel DosePro prescription were new to the triptan market (i.e., had not filled a triptan prescription in the prior 18 months), 34% had active prescriptions for Sumavel DosePro and at least one additional triptan and 17% of patients had converted to Sumavel DosePro from another triptan. The remaining 12% of patients were continuing users of Sumavel DosePro. Importantly, of the patients who converted from another triptan, 75% converted from oral triptans, including tablets and fast melt formulations. (Source® Lx APLD January 2010 – June 2010)
Patients’ Experience
Patients’ experience with Sumavel DosePro has been positive based on feedback provided via the Connects Program from Infomedics. This internet-based program invites patients that received a Sumavel DosePro prescription to register online at the time of their prescription and then provide feedback after they have used the product to treat a migraine episode. Through August 7, 2010, 877 patient respondents who had used Sumavel DosePro have rated their satisfaction with Sumavel DosePro at an average score of 7.1 versus 5.5 for their prior migraine medication (9-point satisfaction scale, with 9 being “very satisfied”)

USE OF PROCEEDS
$71mm
.  $35mm to fund Phase 3 clinical trials and related development activities for ZX002
. $35.4mm to fund the ongoing commercialization of Sumavel DosePro and for working capital and other general corporate purposes.

ZGNX Valuation Metrics


]]> http://seekingalpha.com/instablog/393119-ipodesktop/110795-anacor-pharma-anac-collaborations-with-gsk-lly-help-the-ipo?source=feed 110795 Nov 15wk IPO calendar

Anacor Pharmaceuticals (ANAC) $80mm IPO
with a market cap of $294 at the price range mid-point of $17
Scheduled for Thursday, November 18, 2010

ANAC Valuation Metrics

CONCLUSION
. Anacor is worth watching because of it’s top flight partners
. Collaborating with GSK & LLY
. Loss rate declining.  
. However, 75% of contract revenue from related parties

BUSINESS
Biopharmaceutical development company specializing in a boron chemistry platform

COLLABORATIONS
. GlaxoSmithKline (GSK) $100bb market cap
. Eli Lilly (LLY) $40bb market cap

USE OF PROCEEDS
$71.6mm plus $44.5 of cash on hand
. $46.7 million to fund Phase 3 clinical trials of AN2690 for onychomycosis and preclinical and clinical activities through the initial Phase 3 clinical trial of AN2728 for psoriasis; and
. $9.0 million to repay debt
. Remainder for R&D and working capital

ANAC Valuation Metrics

]]> Sat, 13 Nov 2010 02:29:40 -0500 Nov 15wk IPO calendar

Anacor Pharmaceuticals (ANAC) $80mm IPO
with a market cap of $294 at the price range mid-point of $17
Scheduled for Thursday, November 18, 2010

ANAC Valuation Metrics

CONCLUSION
. Anacor is worth watching because of it’s top flight partners
. Collaborating with GSK & LLY
. Loss rate declining.  
. However, 75% of contract revenue from related parties

BUSINESS
Biopharmaceutical development company specializing in a boron chemistry platform

COLLABORATIONS
. GlaxoSmithKline (GSK) $100bb market cap
. Eli Lilly (LLY) $40bb market cap

USE OF PROCEEDS
$71.6mm plus $44.5 of cash on hand
. $46.7 million to fund Phase 3 clinical trials of AN2690 for onychomycosis and preclinical and clinical activities through the initial Phase 3 clinical trial of AN2728 for psoriasis; and
. $9.0 million to repay debt
. Remainder for R&D and working capital

ANAC Valuation Metrics

]]> gsk lly http://seekingalpha.com/instablog/393119-ipodesktop/110794-lizhan-lzen-ipo-low-p-e-multiple-will-sales-growth-continue?source=feed 110794 Nov 15wk IPO calendar

Lizhan Environmental (LZEN) $10mm IPO
with a market cap of $72 at the price range mid-point of $5.50

LZEN Valuation Metrics

CONCLUSION
. Worth watching to see if the profitable, geometric sales increases can reoccur
. Been in operation since 2008
. For the nine months ended September 30, 2010 sales grew to 218% to $35mm from $16mm in the year earlier period
. Gross profit of 25% suggests relatively low proprietary value added

BUSINESS
. Makes synthetic leather and other fabrics from recycled leather waste
. Sells products to furniture, automotive upholstery and garment manufacturers, as well as fabric distributors.
24% of revenues from export sales

COMPETITION
The synthetic fabric industry in China is very large and fragmented.

INTELLECTUAL PROPERTY
Five design patents and three new utility model patents

USE OF PROCEEDS
$8.5mm
Installation of three production lines (production lines 2, 3 and 4) in the Evergreen Product facility that LZEN is in the process of completing.

LZEN Valuation Metrics

]]> Sat, 13 Nov 2010 02:22:11 -0500 Nov 15wk IPO calendar

Lizhan Environmental (LZEN) $10mm IPO
with a market cap of $72 at the price range mid-point of $5.50

LZEN Valuation Metrics

CONCLUSION
. Worth watching to see if the profitable, geometric sales increases can reoccur
. Been in operation since 2008
. For the nine months ended September 30, 2010 sales grew to 218% to $35mm from $16mm in the year earlier period
. Gross profit of 25% suggests relatively low proprietary value added

BUSINESS
. Makes synthetic leather and other fabrics from recycled leather waste
. Sells products to furniture, automotive upholstery and garment manufacturers, as well as fabric distributors.
24% of revenues from export sales

COMPETITION
The synthetic fabric industry in China is very large and fragmented.

INTELLECTUAL PROPERTY
Five design patents and three new utility model patents

USE OF PROCEEDS
$8.5mm
Installation of three production lines (production lines 2, 3 and 4) in the Evergreen Product facility that LZEN is in the process of completing.

LZEN Valuation Metrics

]]> lzen http://seekingalpha.com/instablog/393119-ipodesktop/110793-china-bitauto-bita-ipo-has-longer-term-potential?source=feed 110793 bitaNov 15wk IPO calendar

Bitauto Holdings Limited (BITA) $113mm IPO
with a market cap of $454mm at the price range mid-point of $11
Scheduled for Thursday, November 18, 2010

BITA Valuation Metrics

CONCLUSION
. At 155 times annualized, adjusted earnings for the nine months ended September 30, 2010 BIA seems richly priced
. However, BITA appears to be the leader in the  fast growing Internet-based automobile advertising market sector in China
. With a 64% gross margin, BITA’s bottom line could benefit significantly from (potential) rapid increases in top line revenue

BUSINESS
. Internet content and marketing services for China’s automotive industry
. Through a “vertical plus portal” model, also distributes dealer customers’ automobile pricing and promotional information through 67 partner websites, including major portals operated by Tencent, Sina, Netease, Yahoo China and Tom Online.
. Largest Internet advertising agency for automakers in China, placing advertisements representing more than 30% of the overall online advertising spending by automakers in China in 2009, according to iResearch

MARKET GROWTH
. Total online automobile advertising spending in China has also increased at a CAGR of 54.3% from RMB254 million in 2005 to RMB1,440 million in 2009
. Expected to grow further at a CAGR of 27.5% to reach RMB3,806 million in 2013, according to iResearch

CUSTOMERS
Nationwide dealers customer base
. New automobile dealer subscribers have increased from 981 in 2007 to 2,783 in the first nine months of 2010
. Used automobile listing customers have increased from 265 in the first half of 2009 to 1,094 in the first nine months of 2010.
Automakers
Of the 80 major automakers in China, consisting of international and Chinese automobile manufacturers and their joint ventures, 55 placed advertisements on the bitauto.com website in the nine months ended September 30, 2010.

SEGMENTS
With per cent of revenue generated for the nine months ended September 30, 1020
. bitauto.com business 63% -- revenue from website advertising customers, auto dealers & makers
. Digital marketing solutions business 33% -- service fees paid by customers, principally automakers,
. ucar.cn business 4%:  listing services to used automobile dealers

CUSTOMER CONCENTRATION
. Limited number of automaker customers for BITA’s digital marketing solutions business.
. In 2009 and the first nine months of 2010, revenues from the top three automaker customers accounted for 28.9% and 24.9%, respectively, of digital marketing solutions revenues
. In particular, the largest automaker customer accounted for 21.4% and 17.4% of digital marketing in 2009 and the first nine months of 2010, respectively.

COMPETITION
bitauto.com
. Faces competition from many market participants. With respect to our new automobile advertising services, faces competition from China’s automotive vertical websites, such as pcauto.com.cn and autohome.com.cn, as well as the automotive channels of major portals and traditional forms of media.
. Competition with other websites is primarily centered on website traffic and brand recognition among general Internet users, spending by automakers and automobile dealers, and customer retention and acquisition.
. With respect to new automobile dealer subscription services, we also face competitions from pcauto.com.cn and autohome.com.cn in terms of automobile inventory, timeliness and accuracy of automobile pricing information and website traffic.

ucar.cn
. Faces competition from other used automobile websites, such as 51auto.com and hx2car.com, as well as other websites and media that publish used automobile information in China.
. Parameters of competition are similar to those of the bitauto.com business, except that the competition for the ucar.cn business is more focused on the size of used automobile inventory and market penetration among used automobile dealers.

Digital marketing solutions
Faces competition from other Internet marketing service providers in China, including well-established international advertising agencies such as Dentsu and WPP as well as local agencies that specialize in providing online marketing services, including AllYes Online Media, Hylink Advertising and Beijing Catch Stone Advertising.

USE OF PROCEEDS
9mm ADSs, shareholders intend to sell 1.6mm ADSs
$89mm to BITA
. $25.0 million of the net proceeds for product development
. $25.0 million of the net proceeds for sales and marketing
. Balance for general corporate purposes, including working capital, $3.0 million to pay a RMB20 million loan

BITA Valuation Metrics



Disclosure: none]]> Sat, 13 Nov 2010 02:17:36 -0500 bitaNov 15wk IPO calendar

Bitauto Holdings Limited (BITA) $113mm IPO
with a market cap of $454mm at the price range mid-point of $11
Scheduled for Thursday, November 18, 2010

BITA Valuation Metrics

CONCLUSION
. At 155 times annualized, adjusted earnings for the nine months ended September 30, 2010 BIA seems richly priced
. However, BITA appears to be the leader in the  fast growing Internet-based automobile advertising market sector in China
. With a 64% gross margin, BITA’s bottom line could benefit significantly from (potential) rapid increases in top line revenue

BUSINESS
. Internet content and marketing services for China’s automotive industry
. Through a “vertical plus portal” model, also distributes dealer customers’ automobile pricing and promotional information through 67 partner websites, including major portals operated by Tencent, Sina, Netease, Yahoo China and Tom Online.
. Largest Internet advertising agency for automakers in China, placing advertisements representing more than 30% of the overall online advertising spending by automakers in China in 2009, according to iResearch

MARKET GROWTH
. Total online automobile advertising spending in China has also increased at a CAGR of 54.3% from RMB254 million in 2005 to RMB1,440 million in 2009
. Expected to grow further at a CAGR of 27.5% to reach RMB3,806 million in 2013, according to iResearch

CUSTOMERS
Nationwide dealers customer base
. New automobile dealer subscribers have increased from 981 in 2007 to 2,783 in the first nine months of 2010
. Used automobile listing customers have increased from 265 in the first half of 2009 to 1,094 in the first nine months of 2010.
Automakers
Of the 80 major automakers in China, consisting of international and Chinese automobile manufacturers and their joint ventures, 55 placed advertisements on the bitauto.com website in the nine months ended September 30, 2010.

SEGMENTS
With per cent of revenue generated for the nine months ended September 30, 1020
. bitauto.com business 63% -- revenue from website advertising customers, auto dealers & makers
. Digital marketing solutions business 33% -- service fees paid by customers, principally automakers,
. ucar.cn business 4%:  listing services to used automobile dealers

CUSTOMER CONCENTRATION
. Limited number of automaker customers for BITA’s digital marketing solutions business.
. In 2009 and the first nine months of 2010, revenues from the top three automaker customers accounted for 28.9% and 24.9%, respectively, of digital marketing solutions revenues
. In particular, the largest automaker customer accounted for 21.4% and 17.4% of digital marketing in 2009 and the first nine months of 2010, respectively.

COMPETITION
bitauto.com
. Faces competition from many market participants. With respect to our new automobile advertising services, faces competition from China’s automotive vertical websites, such as pcauto.com.cn and autohome.com.cn, as well as the automotive channels of major portals and traditional forms of media.
. Competition with other websites is primarily centered on website traffic and brand recognition among general Internet users, spending by automakers and automobile dealers, and customer retention and acquisition.
. With respect to new automobile dealer subscription services, we also face competitions from pcauto.com.cn and autohome.com.cn in terms of automobile inventory, timeliness and accuracy of automobile pricing information and website traffic.

ucar.cn
. Faces competition from other used automobile websites, such as 51auto.com and hx2car.com, as well as other websites and media that publish used automobile information in China.
. Parameters of competition are similar to those of the bitauto.com business, except that the competition for the ucar.cn business is more focused on the size of used automobile inventory and market penetration among used automobile dealers.

Digital marketing solutions
Faces competition from other Internet marketing service providers in China, including well-established international advertising agencies such as Dentsu and WPP as well as local agencies that specialize in providing online marketing services, including AllYes Online Media, Hylink Advertising and Beijing Catch Stone Advertising.

USE OF PROCEEDS
9mm ADSs, shareholders intend to sell 1.6mm ADSs
$89mm to BITA
. $25.0 million of the net proceeds for product development
. $25.0 million of the net proceeds for sales and marketing
. Balance for general corporate purposes, including working capital, $3.0 million to pay a RMB20 million loan

BITA Valuation Metrics



Disclosure: none]]> bita http://seekingalpha.com/instablog/393119-ipodesktop/110787-caesars-entertainment-ipo-is-risky?source=feed 110787 Nov 15wk IPO calendar

Caesars Entertainment (CZR) $980mm IPO (see '"how many shares" below)
with a market cap of $5.4bb at the price range mid-point of $15.  Scheduled for Friday, November 19, 2010

CZR Valuation Metrics

CONCLUSION
CZR is risky at the price range mid-point of $16
Weak & compromised balance sheet
. $20 billion of debt
. Negative tangible book value of $6.7bb, post-IPO
Weak Income statement -- for the nine months ended September 30, 2010
. Revenue decreased to $6.7bb from $6.8bb
. Profit dropped to -$634mm from a plus $532mm
. Interest charges of 22% of revenue crippled the income statement
Dividends not expected (weak balance sheet & income statement)

Expansion?  CZR wants to use IPO proceeds to expand, but there is significant over capacity in the gaming business, especially in Las Vegas.

HOW MANY SHARES IN THE IPO
31 million or 61 million?
On page 11 in the November 5, 2010 S-1 filing “Summary of the Terms of the Common Stock”
“Shares of common stock offered for resale by the Selling Stockholders in this offering:  30,243,126 shares" and
“Shares of common stock offered by Caesars in the IPO: 31,250,000 shares

On page 37 “Use of Proceeds” page 37
CZR says “We are registering these shares of common stock for resale by the selling stockholders in connection with the Private Placement. We will not receive any proceeds from the sale of the shares offered by this prospectus. The net proceeds from the sale of the shares offered by this prospectus will be received by the selling stockholders.”

On page 40 “Dilution”
“After giving effect to the receipt and our intended use of approximately $469.4 million of estimated net proceeds from our sale of 31,250,000 shares of common stock in the IPO at an assumed offering price of $16.00 per share”

COMPARE STOCK PRICES
from December 31, 2009 to November 10, 2010
. Las Vegas Sands (LVS) increased to $50 from $15
. Wynn Resorts increased to $114 from $58
. MGM Resorts (MGM) increased to $13 from $9, and MGM filed for bankruptcy November 3, 2010

BUSINESS
. CZR is the world’s largest casino entertainment provider as measured by net revenues and individual casinos, and the most geographically diverse U.S. casino operator.
. As of September 30, 2010, owned, operated or managed, through various subsidiaries, 52 casinos in 12 U.S. states and seven countries.
. Vast majority of these casinos operate in the United States and England. Casino entertainment facilities operate primarily under the Caesars, Harrah’s and Horseshoe brand names in the United States, and include land-based casinos, casino clubs, riverboat or dockside casinos, casinos on Indian reservations, and casinos combined with a greyhound racing facility, a thoroughbred racetrack and a harness racetrack.

USE OF PROCEEDS
By Caesars 31mm, by selling shareholders 30mm .
100% to selling shareholders in connection with the Private Placement.  $469mm to CZR (see 'how many shares' above)
. To fund a near-term pipeline of growth projects and for general corporate purposes.
. These projects include the previously announced LINQ, a dining, entertainment and retail area located between the Imperial Palace and the Flamingo in Las Vegas; the completion of the Octavius tower fit out, a 660 room tower at the Caesars Palace Las Vegas property;
. CZR’s potential joint venture development in Ohio with Rock Gaming, LLC; and the Penn’s Landing development and management opportunity.
. CZR anticipates that these projects will require approximately $500 million of capital from CZR

CZR Valuation Metrics




Disclosure: none]]> Sat, 13 Nov 2010 01:47:27 -0500 Nov 15wk IPO calendar

Caesars Entertainment (CZR) $980mm IPO (see '"how many shares" below)
with a market cap of $5.4bb at the price range mid-point of $15.  Scheduled for Friday, November 19, 2010

CZR Valuation Metrics

CONCLUSION
CZR is risky at the price range mid-point of $16
Weak & compromised balance sheet
. $20 billion of debt
. Negative tangible book value of $6.7bb, post-IPO
Weak Income statement -- for the nine months ended September 30, 2010
. Revenue decreased to $6.7bb from $6.8bb
. Profit dropped to -$634mm from a plus $532mm
. Interest charges of 22% of revenue crippled the income statement
Dividends not expected (weak balance sheet & income statement)

Expansion?  CZR wants to use IPO proceeds to expand, but there is significant over capacity in the gaming business, especially in Las Vegas.

HOW MANY SHARES IN THE IPO
31 million or 61 million?
On page 11 in the November 5, 2010 S-1 filing “Summary of the Terms of the Common Stock”
“Shares of common stock offered for resale by the Selling Stockholders in this offering:  30,243,126 shares" and
“Shares of common stock offered by Caesars in the IPO: 31,250,000 shares

On page 37 “Use of Proceeds” page 37
CZR says “We are registering these shares of common stock for resale by the selling stockholders in connection with the Private Placement. We will not receive any proceeds from the sale of the shares offered by this prospectus. The net proceeds from the sale of the shares offered by this prospectus will be received by the selling stockholders.”

On page 40 “Dilution”
“After giving effect to the receipt and our intended use of approximately $469.4 million of estimated net proceeds from our sale of 31,250,000 shares of common stock in the IPO at an assumed offering price of $16.00 per share”

COMPARE STOCK PRICES
from December 31, 2009 to November 10, 2010
. Las Vegas Sands (LVS) increased to $50 from $15
. Wynn Resorts increased to $114 from $58
. MGM Resorts (MGM) increased to $13 from $9, and MGM filed for bankruptcy November 3, 2010

BUSINESS
. CZR is the world’s largest casino entertainment provider as measured by net revenues and individual casinos, and the most geographically diverse U.S. casino operator.
. As of September 30, 2010, owned, operated or managed, through various subsidiaries, 52 casinos in 12 U.S. states and seven countries.
. Vast majority of these casinos operate in the United States and England. Casino entertainment facilities operate primarily under the Caesars, Harrah’s and Horseshoe brand names in the United States, and include land-based casinos, casino clubs, riverboat or dockside casinos, casinos on Indian reservations, and casinos combined with a greyhound racing facility, a thoroughbred racetrack and a harness racetrack.

USE OF PROCEEDS
By Caesars 31mm, by selling shareholders 30mm .
100% to selling shareholders in connection with the Private Placement.  $469mm to CZR (see 'how many shares' above)
. To fund a near-term pipeline of growth projects and for general corporate purposes.
. These projects include the previously announced LINQ, a dining, entertainment and retail area located between the Imperial Palace and the Flamingo in Las Vegas; the completion of the Octavius tower fit out, a 660 room tower at the Caesars Palace Las Vegas property;
. CZR’s potential joint venture development in Ohio with Rock Gaming, LLC; and the Penn’s Landing development and management opportunity.
. CZR anticipates that these projects will require approximately $500 million of capital from CZR

CZR Valuation Metrics




Disclosure: none]]> czr wynn lvs mgm