As one gaming analyst recently said about the Red Rock Resorts IPO, “there is going to be an appetite for them to grow.” However, economic conditions in Las Vegas and little revenue growth by Red Rock suggest hungry investors might not find the company very appetizing, especially as they see company insiders planning to take out a substantial amount of cash concurrent with the IPO.
https://www.rrripodissected.org/wp-content/uploads/hungry_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-01-19 15:00:362016-04-22 05:58:02Selling Growth While Cashing Out
As currently proposed, the Red Rock Resorts IPO will result in the Fertitta family taking substantial sums from the company, retaining control for the long term through super voting rights, and shifting risks in its current structure to new public investors. The complicated IPO thus presents prospective investors with an unappealing proposition.
https://www.rrripodissected.org/wp-content/uploads/RRR-second-class-IPO.jpg429613Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-01-19 10:00:162016-04-22 08:04:35What is the Red Rock Resorts IPO?
Red Rock Resorts Inc. is the new name of Station Casinos Corp. and the vehicle for Station Casinos’ return to the public market. Station Casinos registered the domain name “redrockresortsinc.com”, but it does not currently direct to a live website. The more obvious domain name for the company, “redrockresorts.com”, has been taken by someone else.
https://www.rrripodissected.org/wp-content/uploads/redrockresortsdotcom_160115.jpg565825Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-01-16 00:11:422016-02-12 22:25:35What is Red Rock Resorts, Inc.?
We have previously communicated our concern that it is dangerous to allow a parent company of a felon to go unlicensed while profiting from Nevada casinos and have asked the Board and Commission to call Deutsche Bank forward for a suitability review. Now that Deutsche Bank is set to own voting rights, we believe this only furthers the need for a suitability review.
https://www.rrripodissected.org/wp-content/uploads/redrockclouds_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2015-12-23 12:00:042016-02-12 22:28:38Public Comments by UNITE HERE Culinary Local 226 at Nevada Gaming Commission Meeting on December 17, 2015
We ask the Commission to consider three specific amendments to Rule 3-05. We have arrived at our suggestions after reviewing recent filings by Station Casinos LLC and Station Casinos Corp. We think investors would find it difficult to evaluate the proposed $460-million purchase price of Fertitta Entertainment LLC as neither registrant has provided historical financials of the target.
https://www.rrripodissected.org/wp-content/uploads/valley_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2015-12-01 09:00:302016-02-12 22:26:04Our Response to SEC Request for Comment on the Effectiveness of Financial Disclosures about Entities Other than the Registrant
Last week, news broke that Fidelity, the mutual fund giant, had lowered its valuation of Snapchat Inc., the video messaging app company, by 25%. The story got us thinking about how much Fidelity values Station Casinos LLC, of which it owns 8.7%. Fidelity’s valuation would provide a useful baseline for prospective investors in the Station Casinos IPO.
https://www.rrripodissected.org/wp-content/uploads/scalpel-money_880x400.jpg400880Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2015-11-17 19:09:532016-02-17 17:40:09How much is Station Casinos worth?
Selling Growth While Cashing Out
/in UpdatesAs one gaming analyst recently said about the Red Rock Resorts IPO, “there is going to be an appetite for them to grow.” However, economic conditions in Las Vegas and little revenue growth by Red Rock suggest hungry investors might not find the company very appetizing, especially as they see company insiders planning to take out a substantial amount of cash concurrent with the IPO.
What is the Red Rock Resorts IPO?
/in UpdatesAs currently proposed, the Red Rock Resorts IPO will result in the Fertitta family taking substantial sums from the company, retaining control for the long term through super voting rights, and shifting risks in its current structure to new public investors. The complicated IPO thus presents prospective investors with an unappealing proposition.
What is Red Rock Resorts, Inc.?
/in UpdatesRed Rock Resorts Inc. is the new name of Station Casinos Corp. and the vehicle for Station Casinos’ return to the public market. Station Casinos registered the domain name “redrockresortsinc.com”, but it does not currently direct to a live website. The more obvious domain name for the company, “redrockresorts.com”, has been taken by someone else.
Public Comments by UNITE HERE Culinary Local 226 at Nevada Gaming Commission Meeting on December 17, 2015
/in UpdatesWe have previously communicated our concern that it is dangerous to allow a parent company of a felon to go unlicensed while profiting from Nevada casinos and have asked the Board and Commission to call Deutsche Bank forward for a suitability review. Now that Deutsche Bank is set to own voting rights, we believe this only furthers the need for a suitability review.
Our Response to SEC Request for Comment on the Effectiveness of Financial Disclosures about Entities Other than the Registrant
/in UpdatesWe ask the Commission to consider three specific amendments to Rule 3-05. We have arrived at our suggestions after reviewing recent filings by Station Casinos LLC and Station Casinos Corp. We think investors would find it difficult to evaluate the proposed $460-million purchase price of Fertitta Entertainment LLC as neither registrant has provided historical financials of the target.
How much is Station Casinos worth?
/in UpdatesLast week, news broke that Fidelity, the mutual fund giant, had lowered its valuation of Snapchat Inc., the video messaging app company, by 25%. The story got us thinking about how much Fidelity values Station Casinos LLC, of which it owns 8.7%. Fidelity’s valuation would provide a useful baseline for prospective investors in the Station Casinos IPO.