Is casino growth tapped out in the U.S? Documents filed in the bankruptcy case of Atlantic City's Revel estimates the casino property is now worth only $246M-$331M after costing close to $2.4B. The development follows other news from regional players across the U.S. of casino companies taking market share from each other as saturation becomes a factor. Another fly in the ointment for future brick-and-mortar growth is the tantalizing prospect for online gambling. [View news story]
The casino business is forever as long as the lower classes stay stupid and liquid. Not much chance they're going to wise up. However their free cash flow continues to shrivel. That's a problem.
BlackRock (BLK) is set to lay off nearly 300 employees - about 3% of its workforce - reports Reuters, citing a company memo. "These moves ... will make us a more agile organization better positioned to respond to changing client and market needs," says President Rob Kapito. [View news story]
"These moves ... will make us a more agile organization better positioned to respond to changing client and market needs,"
Damn workers getting in the way of us responding to client/market needs. Who do you think you are? GTF out of here.
I just hope those 300 peeps have learned their lesson and won't be deadweight drags on their next organization.
More on BlackBerry: Lenovo buyout speculation has picked up again thanks to remarks made by Lenovo (LNVGY.PK) CEO Yang Yuanqing to a French paper. "As for BlackBerry, the [acquisition] could possibly make sense. But first I have to analyze the market well and understand what is the exact weight of this company." CFO Wong Dai suggested in January his company is open to buying BlackBerry (BBRY +9.1%), but Lenovo later downplayed those remarks. [View news story]
Carl Icahn promises "years of litigation" for Dell (DELL -0.1%) if it doesn't combine a vote on its LBO with one for an annual meeting in which Icahn will propose a friendly slate of directors, in a letter to the board. Icahn also suggests Dell would only have to raise $4.26/share ($5.25B) in new debt to finance his $9/share dividend. Larry Dignan argues "rivals will have a field day" with a debt-laden Dell should Icahn's proposal win out. But this assumes the proposal isn't just a negotiating tactic. Jefferies: "We think that Icahn would likely be satisfied with a raised bid to $15." (more) [View news story]
So Michael Dell, Carl Icahn and Bill Ackman are marooned on a desert island in the middle of the ocean. Four weeks later a ship comes and finds only one survivor. Which one is it? Does it matter?
Bill Ackman's flagship fund at Pershing Square fell 0.1% in February, not bad considering the hits from two of his marquee holdings. The last day of the month was particularly painful, with J.C. Penney plummeting 17% while Herbalife jumped 7.6%. For the year, the fund is up 3.6% vs. the S&P's 7.4% gain. [View news story]
Las Vegas Sands (LVS) acknowledges it probably broke the law against bribing foreign officials, according to its 10-K filed yesterday. The WSJ ties the admission to dealings in mainland China by people no longer with the firm. The SEC subpoenaed the company Feb. 9, 2011, at which time the LVS board's audit committee opened a probe; LVS doesn't expect any material impact or restatement of past results. [View news story]
How can the small American casino owner compete with LVS and the other big casinos who are exporting our gambling jobs to Macau?
Icahn Enterprises (IEP -12.5%) prices its secondary at $63/unit, giving Icahn another $200M with which to battle Bill Ackman on Herbalife (HLF +3%). (PR) [View news story]
I have to agree after looking at the chart. He got the press from his fight with Ackmann and lots of traders got on board. He sold the $200m secondary not because he needed the cash but because he could.
Icahn Enterprises (IEP -12.5%) prices its secondary at $63/unit, giving Icahn another $200M with which to battle Bill Ackman on Herbalife (HLF +3%). (PR) [View news story]
Let me be the first to say that if I was a (minority) shareholder in IEP I'd be plenty pissed off at Carl's vendetta with Bill. Fortunately I am not.
Why are consumers buying cars at a solid pace if they aren't shopping in a lively manner at Wal-Mart and Target? Despite warnings up and down the retail sector, the National Automobile Dealers Association is sticking by its prediction for 15.4M vehicles sold this year while today's reports on Feb. sales (GM, Ford, Chrysler, Volkswagen) don't look half-bad in the face of higher payroll taxes and the looming sequester. Analysts think fresh products and a need to replace the older gas-guzzling fleet of cars in the country are behind the sector strength. [View news story]
That's what Stan Druckenmiller said on Bloomberg Hedge Fund TV this AM. It's the seniors sucking the life out of our economy to buy new cars with their SS checks.
Papa John's (PZZA -8%) slumps after missing earnings estimates with its Q4 report and restating financial results from 2009 to 2011. During the latest quarter, the company saw global sales growth of 19.6% and growth at restaurants opened at least a year of 7%. [View news story]
I really don't know how this company survives. Obamacare is going to add something like $.15 to COGS per pizza. If they try to raise prices it's going to price them out of the range for their target demographic.
Leading off his latest outlook with Alan Greenspan's "irrational exuberance" line, Bill Gross (BOND) ponders its application to credit markets (LQD, HYG, JNK) today. Conclusion: Not yet. Labeling credit irrationality a 6 on a scale of 1-10, Gross suggests not selling, but instead lowering expectations. [View news story]
Yes Mr. Investor please lower your expectations slowly while I 'lower' my duration quickly. This is called distribution.
Railroad stocks move higher after a report on durable goods comes in better than expected with Kansas City Southern (KSU +6.4%) leading the pack. Advancers: UNP +2.0%, GWR +2.2%, CNI +1.6%, UNP +2.1%. [View news story]
Durable Goods Number!! No way. It's because it's spring and traffic is starting to move again. Railfax.transmatch.com
More Dimon (previous): "If I could borrow at 4% after-tax, I'd be buying up huge chunks of corporate America right now." It might be sage advice from the man who called JPMorgan (JPM) shares a "no-brainer" as they sank to the low $30s in wake of the London Whale affair last year. [View news story]
Is casino growth tapped out in the U.S? Documents filed in the bankruptcy case of Atlantic City's Revel estimates the casino property is now worth only $246M-$331M after costing close to $2.4B. The development follows other news from regional players across the U.S. of casino companies taking market share from each other as saturation becomes a factor. Another fly in the ointment for future brick-and-mortar growth is the tantalizing prospect for online gambling. [View news story]
BlackRock (BLK) is set to lay off nearly 300 employees - about 3% of its workforce - reports Reuters, citing a company memo. "These moves ... will make us a more agile organization better positioned to respond to changing client and market needs," says President Rob Kapito. [View news story]
Damn workers getting in the way of us responding to client/market needs. Who do you think you are? GTF out of here.
I just hope those 300 peeps have learned their lesson and won't be deadweight drags on their next organization.
More on BlackBerry: Lenovo buyout speculation has picked up again thanks to remarks made by Lenovo (LNVGY.PK) CEO Yang Yuanqing to a French paper. "As for BlackBerry, the [acquisition] could possibly make sense. But first I have to analyze the market well and understand what is the exact weight of this company." CFO Wong Dai suggested in January his company is open to buying BlackBerry (BBRY +9.1%), but Lenovo later downplayed those remarks. [View news story]
Carl Icahn promises "years of litigation" for Dell (DELL -0.1%) if it doesn't combine a vote on its LBO with one for an annual meeting in which Icahn will propose a friendly slate of directors, in a letter to the board. Icahn also suggests Dell would only have to raise $4.26/share ($5.25B) in new debt to finance his $9/share dividend. Larry Dignan argues "rivals will have a field day" with a debt-laden Dell should Icahn's proposal win out. But this assumes the proposal isn't just a negotiating tactic. Jefferies: "We think that Icahn would likely be satisfied with a raised bid to $15." (more) [View news story]
Bill Ackman's flagship fund at Pershing Square fell 0.1% in February, not bad considering the hits from two of his marquee holdings. The last day of the month was particularly painful, with J.C. Penney plummeting 17% while Herbalife jumped 7.6%. For the year, the fund is up 3.6% vs. the S&P's 7.4% gain. [View news story]
Las Vegas Sands (LVS) acknowledges it probably broke the law against bribing foreign officials, according to its 10-K filed yesterday. The WSJ ties the admission to dealings in mainland China by people no longer with the firm. The SEC subpoenaed the company Feb. 9, 2011, at which time the LVS board's audit committee opened a probe; LVS doesn't expect any material impact or restatement of past results. [View news story]
Icahn Enterprises (IEP -12.5%) prices its secondary at $63/unit, giving Icahn another $200M with which to battle Bill Ackman on Herbalife (HLF +3%). (PR) [View news story]
Icahn Enterprises (IEP -12.5%) prices its secondary at $63/unit, giving Icahn another $200M with which to battle Bill Ackman on Herbalife (HLF +3%). (PR) [View news story]
Why are consumers buying cars at a solid pace if they aren't shopping in a lively manner at Wal-Mart and Target? Despite warnings up and down the retail sector, the National Automobile Dealers Association is sticking by its prediction for 15.4M vehicles sold this year while today's reports on Feb. sales (GM, Ford, Chrysler, Volkswagen) don't look half-bad in the face of higher payroll taxes and the looming sequester. Analysts think fresh products and a need to replace the older gas-guzzling fleet of cars in the country are behind the sector strength. [View news story]
Herbalife (HLF +3.7%) is halted on news it's expanded its board with two Icahn reps nominated to fill the slots. (PR) [View news story]
Papa John's (PZZA -8%) slumps after missing earnings estimates with its Q4 report and restating financial results from 2009 to 2011. During the latest quarter, the company saw global sales growth of 19.6% and growth at restaurants opened at least a year of 7%. [View news story]
Leading off his latest outlook with Alan Greenspan's "irrational exuberance" line, Bill Gross (BOND) ponders its application to credit markets (LQD, HYG, JNK) today. Conclusion: Not yet. Labeling credit irrationality a 6 on a scale of 1-10, Gross suggests not selling, but instead lowering expectations.
[View news story]
Railroad stocks move higher after a report on durable goods comes in better than expected with Kansas City Southern (KSU +6.4%) leading the pack. Advancers: UNP +2.0%, GWR +2.2%, CNI +1.6%, UNP +2.1%. [View news story]
Papa John's International (PZZA): Q4 EPS of $0.62 misses by $0.14. Revenue of $367M (+19.9% Y/Y) beats by $19M. (PR) [View news story]
More Dimon (previous): "If I could borrow at 4% after-tax, I'd be buying up huge chunks of corporate America right now." It might be sage advice from the man who called JPMorgan (JPM) shares a "no-brainer" as they sank to the low $30s in wake of the London Whale affair last year. [View news story]