MGM Resorts International formally named MGM Mirage just announced a massive quarterly loss of $883 million. or $2 a share co-CEO of The Markets Are Open Allan Edwards remarked that MGM's story was a "mirage akin to a dream" and that that MGM will face further difficulties going forward. MGM states when stripping out one time impairment charges to the City Center that they would have lost 36 cents a share. Edwards stated "the one time losses for impairments on their assets are significant, as this trend has continued over the last few years and it may continue." He also noted that the revenue and earnings were very disappointing even without the one time charges.
Wall Street appears to be ignoring the effects of these one time charges as the stock has gone up as much as 2.3% and is currently up 1.5% at midday. Edwards continued "It is a mistake by anyone who ignores one time charges, they exist and can't be ignored." Asked what he saw in the future of MGM shares Edwards finished "I would no longer buy MGM shares, I have updated my valuation of the company and I now see MGM as a hold and I no longer recommend it."
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