The flip side of Station Casinos’ saturation of the locals market means growth in its core Las Vegas business would have to come from significant increases in (1) the population of Las Vegas and/or (2) customer spending per capita. Facing low population growth and a decline in locals’ gaming behaviors, the company is unlikely to experience much, if any, upside in its core Las Vegas locals business.
https://www.rrripodissected.org/wp-content/uploads/iStock_000083877353_Small.jpg567846Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-08-02 17:56:202017-05-24 19:13:53How Will Red Rock Grow in a Saturated and Stagnant Market?
If Fidelity bond funds valued at Station Casinos at an estimated $9.19 per share at the end of January, what will Fidelity equity funds value the company at if they decide to participate in the upcoming Red Rock Resorts IPO? Will Fidelity ask itself, internally, how Station Casinos could have doubled in value in less than three months?
https://www.rrripodissected.org/wp-content/uploads/iStock_000046487022_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-04-25 18:00:162016-04-26 16:36:35Fidelity Would Have Valued Station Casinos at $9.19 at the End of January
Economic data from federal agencies and gaming data from the Gaming Control Board suggest the current recovery in the Las Vegas area is moving slower than a previous post-recession recovery. Furthermore, we identify a potential limit to the current recovery in terms of the slot win percentage. Growing casino revenue through tighter slots has its limits.
https://www.rrripodissected.org/wp-content/uploads/iStock_000031973872_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-04-25 15:00:252016-04-26 06:53:55More Growth Questions about the Las Vegas Locals Gaming Market
According to a 2/17/15 Deutsche Bank analyst report, Station Casinos LLC, as of 12/31/2014, was estimated to have an enterprise value to be $2.59 billion with an implied an equity valuation of $624.6 million. Investors should ask Deutsche Bank how, in its opinion, the value of Station Casinos could have more than tripled in little over a year.
https://www.rrripodissected.org/wp-content/uploads/scalpel-money_880x400.jpg400880Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-04-22 19:46:062016-04-24 00:59:34Deutsche Bank Would Have Valued Red Rock at $5.39 Per Share a Year Ago
With questionable prospects for growth and poor corporate governance, investors in the Red Rock IPO might want to look to dividends for a reason to invest in Red Rock. But, as a result of its other obligations, there is no certainty the company will be able to pay dividends at a level that satisfies public shareholders.
https://www.rrripodissected.org/wp-content/uploads/Dice-buy-sell_Small-1.jpg629763Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-04-21 18:12:322016-04-22 05:51:51Dividends on Your Second-Class Red Rock Shares? Don’t Count on It
Investors who buy Red Rock’s second-class shares on offer will gain a minority (33%) stake in the once-bankrupt Las Vegas casino and tavern operator, Station Casinos. The terms of the offering beg questions about company insiders’ confidence in its long-term prospects. Prospective investors should ask management the following questions
https://www.rrripodissected.org/wp-content/uploads/RedRock_880x400.jpg400880Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-04-18 19:55:532016-04-27 16:26:17Red Rock Resorts is a Second-Class Gaming IPO
How Will Red Rock Grow in a Saturated and Stagnant Market?
/in UpdatesThe flip side of Station Casinos’ saturation of the locals market means growth in its core Las Vegas business would have to come from significant increases in (1) the population of Las Vegas and/or (2) customer spending per capita. Facing low population growth and a decline in locals’ gaming behaviors, the company is unlikely to experience much, if any, upside in its core Las Vegas locals business.
Fidelity Would Have Valued Station Casinos at $9.19 at the End of January
/in UpdatesIf Fidelity bond funds valued at Station Casinos at an estimated $9.19 per share at the end of January, what will Fidelity equity funds value the company at if they decide to participate in the upcoming Red Rock Resorts IPO? Will Fidelity ask itself, internally, how Station Casinos could have doubled in value in less than three months?
More Growth Questions about the Las Vegas Locals Gaming Market
/in UpdatesEconomic data from federal agencies and gaming data from the Gaming Control Board suggest the current recovery in the Las Vegas area is moving slower than a previous post-recession recovery. Furthermore, we identify a potential limit to the current recovery in terms of the slot win percentage. Growing casino revenue through tighter slots has its limits.
Deutsche Bank Would Have Valued Red Rock at $5.39 Per Share a Year Ago
/in UpdatesAccording to a 2/17/15 Deutsche Bank analyst report, Station Casinos LLC, as of 12/31/2014, was estimated to have an enterprise value to be $2.59 billion with an implied an equity valuation of $624.6 million. Investors should ask Deutsche Bank how, in its opinion, the value of Station Casinos could have more than tripled in little over a year.
Dividends on Your Second-Class Red Rock Shares? Don’t Count on It
/in UpdatesWith questionable prospects for growth and poor corporate governance, investors in the Red Rock IPO might want to look to dividends for a reason to invest in Red Rock. But, as a result of its other obligations, there is no certainty the company will be able to pay dividends at a level that satisfies public shareholders.
Red Rock Resorts is a Second-Class Gaming IPO
/in UpdatesInvestors who buy Red Rock’s second-class shares on offer will gain a minority (33%) stake in the once-bankrupt Las Vegas casino and tavern operator, Station Casinos. The terms of the offering beg questions about company insiders’ confidence in its long-term prospects. Prospective investors should ask management the following questions