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Vital Vegas
Surprise entry in ever-growing mix of Strip casinos up for sale, despite long-standing belief MGM Resorts wouldn't give up its cash cow: Circus Circus. Quote of the day: "It's MGM's Rio."
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Annster Aug 6
Replying to @VitalVegas
Well it’s always been handled sort of separately from the rest of the team. It’s really a weird fit for them and probably due for massive, expensive renovations. Best to unload while it has a positive balance sheet but before major investment is required.
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Vital Vegas Aug 6
Replying to @hollsmom
Exactly right. They can't keep it status quo much longer (much like Rio), and they have to decide what kind of investment they're going to make, and it would have to be a lot. They don't even put it on the letterhead, I don't think.
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STANLEY CUP CHAMPIONS!!!!! Aug 6
Replying to @VitalVegas
Interesting. Hearing any names of buyers? Seems like maybe a buyer might want the land and not the casino and this might be it for Circus Circus?
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Vital Vegas Aug 6
Replying to @bluesfan1972
Suggested as a possible land play, but too early to tell.
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Vital Vegas Aug 6
Replying to @AugustinKeaton
Low level of investment is what makes it so profitable.
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B.J. Bumgarner Aug 6
Replying to @VitalVegas
I’ve never been to Circus Circus. Is it really their “cash cow” or are you being sarcastic?
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WTC Aug 6
It’s an older property that’s completely paid off with low operating costs. While it doesn’t take in as much gross revenue as Aria, Bellagio, etc., its profit margins are sky high.
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WTC Aug 6
Replying to @VitalVegas
Any company that decides to sell a profitable asset is them telling the world they’re doomed. As much as I hate the term “waiting to die”, any company that unloads its profitable assets to raise cash to stave off insolvency is doing exactly that.
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LasVegasThenandNow Aug 6
Replying to @wtcgroup @VitalVegas
Or raise cash to reinvest where returns are better? The land underneath CC is getting more valuable as projects around it near completion. Maybe the land is worth more than the 60mm in EBITDA it provides annually.
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