Under a tax distribution agreement, Station Casinos spent $43.6 million in 2016 to cover some of the federal income tax obligations of the Fertitta family and other owners of the company. Should Red Rock shareholders continue to let Station Casinos, of which they own 57%, spend cash on covering the income tax liabilities of pre-IPO owners like the Fertittas?
In the first quarter of 2017, Red Rock Resorts’ Class A share price declined by 7% while the S&P 500 index went up by 4.65%. What explains this significant underperformance of RRR stock? We believe investors are likely concerned with the Palms acquisition and the uncertainty in the company’s growth pipeline.
https://www.rrripodissected.org/wp-content/uploads/RRRvSP500-1Q17.jpg7031387Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2017-04-04 18:33:572017-04-06 21:14:12Why is Red Rock Resorts’ Share Price Underperforming the Market and Its Peers?
Red Rock Resorts has been talking up its Las Vegas development sites and master-planned expansions in its presentations to investors and SEC filings. However, after a review of local real estate listings and planning agency documents, we found development sites for sale and no approvals on file for some of the company’s master-planned expansions.
Deutsche Bank sold off its ownership stake on Nov. 10. Deutsche Bank is in dire need of additional capital, so we expected them to sell off its Red Rock Resorts stake as soon as it could. Deutsche Bank investors should certainly welcome the cash infusion and capital boost that can come from selling and exiting the casino assets.
https://www.rrripodissected.org/wp-content/uploads/exit_Small.jpg564851Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-10-18 03:39:272017-02-10 01:12:21Deutsche Bank Sells 19.6 Million Class A Shares After IPO Lock-Up Period Expired
The decision by Boulder Station workers to unionize comes less than a year after workers at a Station Casinos-managed tribal casino in Northern California ratified their first union contract. Boulder Station is the first of Station Casinos’ properties in Nevada to unionize with the Culinary and Bartenders Unions.
https://www.rrripodissected.org/wp-content/uploads/2014-08-29-March-on-Boulder-Station-206.jpg34565184Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-09-06 15:00:152017-02-10 01:13:52Workers at Boulder Station Vote to Unionize Through NLRB Secret-Ballot Election
Red Rock Resorts announced its acquisition of the Palms on May 10. We believe investors and analysts should ask the following questions: When will Red Rock disclose the Palms purchase agreement? What will Red Rock have to do to bump Palms’ EBITDA up by 25% in one year? Will “Palms Station” cannibalize Palace Station?
https://www.rrripodissected.org/wp-content/uploads/iStock_2098320_SMALL.jpg565848Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-08-09 18:23:212016-09-07 23:38:58Questions about the Palms Acquisition
Should You Pay Someone Else’s Income Taxes?
/in UpdatesUnder a tax distribution agreement, Station Casinos spent $43.6 million in 2016 to cover some of the federal income tax obligations of the Fertitta family and other owners of the company. Should Red Rock shareholders continue to let Station Casinos, of which they own 57%, spend cash on covering the income tax liabilities of pre-IPO owners like the Fertittas?
Why is Red Rock Resorts’ Share Price Underperforming the Market and Its Peers?
/in UpdatesIn the first quarter of 2017, Red Rock Resorts’ Class A share price declined by 7% while the S&P 500 index went up by 4.65%. What explains this significant underperformance of RRR stock? We believe investors are likely concerned with the Palms acquisition and the uncertainty in the company’s growth pipeline.
Fallow Land, Hollow Claims
/in UpdatesRed Rock Resorts has been talking up its Las Vegas development sites and master-planned expansions in its presentations to investors and SEC filings. However, after a review of local real estate listings and planning agency documents, we found development sites for sale and no approvals on file for some of the company’s master-planned expansions.
Deutsche Bank Sells 19.6 Million Class A Shares After IPO Lock-Up Period Expired
/in UpdatesDeutsche Bank sold off its ownership stake on Nov. 10. Deutsche Bank is in dire need of additional capital, so we expected them to sell off its Red Rock Resorts stake as soon as it could. Deutsche Bank investors should certainly welcome the cash infusion and capital boost that can come from selling and exiting the casino assets.
Workers at Boulder Station Vote to Unionize Through NLRB Secret-Ballot Election
/in UpdatesThe decision by Boulder Station workers to unionize comes less than a year after workers at a Station Casinos-managed tribal casino in Northern California ratified their first union contract. Boulder Station is the first of Station Casinos’ properties in Nevada to unionize with the Culinary and Bartenders Unions.
Questions about the Palms Acquisition
/in UpdatesRed Rock Resorts announced its acquisition of the Palms on May 10. We believe investors and analysts should ask the following questions: When will Red Rock disclose the Palms purchase agreement? What will Red Rock have to do to bump Palms’ EBITDA up by 25% in one year? Will “Palms Station” cannibalize Palace Station?