Caesars Entertainment Corporation (CZR) is a highly overvalued gaming, hotel, and entertainment company with deteriorating fundamentals on all levels in a highly competitive environment. The company's stock has seen a massive run to the upside on the coattails of other casino and entertainment companies in the space. A considerable catalyst for the push higher in these stocks is the good news coming out of Macau, but this is an area where Caesars has absolutely no exposure and will be locked out of for the foreseeable future after failing to take appropriate licensing measures. Below is our introduction into the business model, its weaknesses, and the new selling or shorting opportunity that exists for CZR after the recent appreciation in share price. Investors will soon realize that there is little upside value in this company and that there are much better opportunities in this space. The company is now amidst a major struggle from a debt standpoint with major deadlines approaching over the next year and a half. The company is in no position to thrive going forward unless major steps are taken to overhaul the company's capital structure. Caesars Entertainment has a market cap of $3.19 Billion after the stock has moved up over 225% year to date and reports its next quarter on October 31, 2013. With this in mind, we value CZR at $21.00 by year-end of 2013 and $14.00 by August 1, 2014, a decrease of 40% from current levels. We will later highlight:
Hot Information Technology Stocks To Watch Right Now: NanoTech Entertainment Inc (NTEK)
NanoTech Entertainment, Inc. (NanoTech), formerly Aldar Group, Inc., is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. The Company operates as a manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. As of June 30, 2009, the Company�� products included MultiPin, Xtreme Rally Racing, NanoNET Online System, Pinball Wizard, Mot-Ion Adapter, Opti-Gun Adapter and Retr-IO Adapter. In April 2009, the Company acquired NanoTech Entertainment, Inc. In July 2013, NanoTech Entertainment Inc completed the acquisition of Clear Memories, Inc. of Napa California. Effective August 9, 2013, NanoTech Entertainment Inc acquired Worldwide Global Entertainment, a developer of prepackaged software.
The Company�� physics engine and motion sensors allow MultiPin to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from. Xtreme Rally Racing is a driving machine that features three modes of game play: Xtreme Off-Road-Race Head to Head against other players and the computer to checkpoints while driving anywhere on the map with no preset course; Timed Rally Stages-Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses, and Xtreme Stadium Racing-Custom Stadiums designed for Xtreme racing, including a figure eight multi-lap course with huge jumps. NanoNET Online System is remote operator control of machines, including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net.
The Company has created the input device designed to give the pinball players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin product it has built a controller that lets people play pinball using traditional controls and! the ability to shake and nudge the table. The Mot-Ion adapter is a universal serial bus (USB) adapter that allows do it yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. The OptiGun adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. The Retr-IO adapters provide a standard JAMMA interface for USB based systems.
Advisors' Opinion:- [By James E. Brumley]
Looking for a couple of near-term trades that have a decent shot at rallying even if the broad market feels like it might pull back? Then take a look at Liquidmetal Technologies Inc. (OTCBB:LQMT) and NanoTech Entertainment, Inc. (OTCMKTS:NTEK). Although both LQMT and NTEK will be dismissed by some traders simply because they're OTC-listed stocks, for those traders willing to look past the exchange and appreciate the opportunity, the risk-versus-reward ratio is actually quite compelling.
Top Casino Companies To Own For 2014: Boyd Gaming Corporation(BYD)
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.
Advisors' Opinion:- [By M. Joy, Hayes]
Industry trends
Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN ) and Boyd Gaming (NYSE: BYD ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy. - [By Travis Hoium]
Earnings from Boyd Gaming (NYSE: BYD ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�
Top Casino Companies To Own For 2014: Wynn Macau Ltd (WYNMF)
Wynn Macau, Limited is a holding company. The Company, along with its subsidiaries, is a developer, owner and operator of destination casino gaming and entertainment resort facilities in Macau. Its operating subsidiary, Wynn Resorts (Macau) S.A. (WRM), owns and operates destination casino resort Wynn Macau in Macau. As of December 31, 2011, it had 265,000 square feet of casino space, offering 24-hour gaming with a range of games, and two luxury hotel towers with 1,008 spacious rooms and suites. It also offers eight casual and fine dining restaurants, 54200 square feet of stores and boutiques, such as Bvlgari, Chanel, Dior, Gucci, Hermes, Hugo Boss, Louis Vuitton, Miu Miu, Piaget, Prada, Rolex, Tiffany, Vacheron Constantin, Van Cleef & Arpels, Versace, Vertu and others, two health clubs and spas, a salon, a pool, and lounges and meeting facilities. As of December 31, 2011, its subsidiaries included Wynn Resorts International, Ltd., Wynn Resorts (Macau) Holdings, Ltd. and others. Advisors' Opinion:- [By MARKETWATCH]
HONG KONG (MarketWatch) -- Hong Kong stocks sold off early Thursday after the Federal Reserve decided to further taper stimulus, and after a final reading of China's manufacturing PMI contracted. The Hang Seng Index (HK:HSI) sank 1.5% to 21,815.04 in holiday-shortened trading. Tech stocks retreated, as Chinese PC maker Lenovo Group Ltd. (HK:992) (LNVGF) dropped 5.3%, failing to get a lift from news that it plans to acquire the Motorola handset business from Google Inc. (GOOG) for $2.91 billion as Lenovo aims for a bigger presence in the U.S. market. Software developer Kingsoft Corp. (HK:3888) (KSFTF) fell 1.9% and Internet giant Tencent Holdings Ltd. (HK:700) (TCTZF) dropped 1.5%. Casino stocks also declined. Sands China Ltds. (HK:1928) (SCHYF) , the Hong Kong-listed unit of Las Vegas Sands Corp. (LVS) , slipped 0.2%, despite financial results that showed Sands China's net income increased 40% year-on-year to $467 million in the fourth quarter. Melco Crown Entertainment Ltd. (HK:6883) (MPEL) slumped 3.2%, and both Wynn Macau Ltd. (HK:1128) (WYNMF) and MGM China Holdings Ltd. (HK:2282)
Top Casino Companies To Own For 2014: Bwin.Party Digital Entertainment PLC (BPTY)
bwin.party digital entertainment plc (bwin.party) is a holding company. The Company is an online gaming company. It operates in five segments: sports betting, casino & games, poker, bingo; and other (including network services, World Poker Tour, InterTrader.com, WIN.com, software services and the payment services business). Its sport betting segment includes bwin, betoto, Gamebookers, Gioco Digitale and PartyBets. It�� Casino & games segment includes PartyCasino, bwin and GD Casino. Its poker segment includes PartyPoker, bwin and GD Casino. Its Bingo segment includes Foxy Bingo, Cheeky Bingo, Gioco Digitale and Binguez. The Company�� subsidiaries include BES SAS, bwin Argentina SA, bwin Italia S.r.l., bwin.party Games AB and Cashcade Limited. Its subsidiaries are engaged in management and information technology (IT) services, marketing services, online gaming, transaction services, customer support services, marketing support services and Land-based poker events. Advisors' Opinion:- [By Namitha Jagadeesh]
Bwin.Party Digital Entertainment Plc (BPTY) plunged 14 percent to 110 pence, the biggest drop since April 2011, after the online gaming company said 2013 sales will be 14 percent to 17 percent lower than last year�� figures. Analysts on average had forecast a sales drop of 9.2 percent.
Top Casino Companies To Own For 2014: Caesars Entertainment Corp (CZR)
Caesars Entertainment Corporation, incorporated on November 2, 1989, is a diversified casino-entertainment provider. The Company�� business is primarily conducted through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc. (CEOC), although certain material properties are not owned by CEOC. As of December 31, 2012, it owned, operated, or managed, through various subsidiaries, 52 casinos in 13 United States states and seven countries. The majority of these casinos operate in the United States, primarily under the Caesars, Harrah��, and Horseshoe brand names, and in England. In November 2012, the Company sold its Harrah's St. Louis casino to Penn National Gaming, Inc. In December 2012, the Company purchased all of the net assets of Buffalo Studios, LLC, a social and mobile games developer and owner of Bingo Blitz.
The Company�� casino entertainment facilities include 33 land-based casinos, 11 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Cleveland, Ohio, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack. The Company�� land-based casinos include nine in England, two in Egypt, one in Scotland, one in South Africa and one in Uruguay. As of December 31, 2012, its facilities had an aggregate of approximately three million square feet of gaming space and approximately 43,000 hotel rooms. In southern Nevada, Caesars Palace, Harrah�� Las Vegas, Rio All-Suite Hotel & Casino, Bally�� Las Vegas, Flamingo Las Vegas, Paris Las Vegas, Planet Hollywood Resort and Casino, The Quad Resort & Casino (formerly the Imperial Palace Hotel and Casino), Bill�� Gamblin��Hall & Saloon, and Hot Spot Oasis are located in Las Vegas and draw customers from throughout the United States. Harrah�� Laughlin is located near both the Arizona and California borders and draws customers primarily from! the southern California and Phoenix metropolitan areas and, to a lesser extent, from throughout the United States through charter aircraft. In northern Nevada, Harrah�� Lake Tahoe and Harveys Resort & Casino are located near Lake Tahoe and Harrah�� Reno is located in downtown Reno. These facilities draw customers primarily from northern California, the Pacific Northwest, and Canada.
The Company�� Atlantic City casinos, Harrah�� Resort Atlantic City, Showboat Atlantic City, Caesars Atlantic City, and Bally�� Atlantic City, draw customers primarily from the Philadelphia metropolitan area, New York, and New Jersey. Harrah�� Philadelphia (formerly Harrah's Chester) is a combination harness racetrack and casino located approximately six miles south of Philadelphia International Airport and draws customers primarily from the Philadelphia metropolitan area and Delaware. The Company�� Chicagoland dockside casinos, Harrah�� Joliet in Joliet, Illinois, and Horseshoe Hammond in Hammond, Indiana, draw customers primarily from the greater Chicago metropolitan area. In southern Indiana, it owns Horseshoe Southern Indiana, a dockside casino complex located in Elizabeth, Indiana, which draws customers primarily from northern Kentucky, including the Louisville metropolitan area, and southern Indiana, including Indianapolis. In Louisiana, the Company owns Harrah�� New Orleans, a land-based casino located in downtown New Orleans, which attracts customers primarily from the New Orleans metropolitan area. In northwest Louisiana, Horseshoe Bossier City, a dockside casino, and Harrah�� Louisiana Downs, a thoroughbred racetrack with slot machines, both located in Bossier City, cater to customers in northwestern Louisiana.
The Company owns the Grand Casino Biloxi, located in Biloxi, Mississippi, which caters to customers in southern Mississippi, southern Alabama, and northern Florida. Harrah�� North Kansas City dockside casino draws customers from the Kansas City metropolitan ar! ea. Harra! h�� Metropolis is a dockside casino located in Metropolis, Illinois, on the Ohio River, drawing customers from southern Illinois, western Kentucky, and central Tennessee. Horseshoe Tunica, Harrah�� Tunica, and Tunica Roadhouse Hotel & Casino, dockside casino complexes located in Tunica, Mississippi, are approximately 30 miles from Memphis, Tennessee and draw customers primarily from the Memphis area and, to a lesser extent, from throughout the United States through charter aircraft. Horseshoe Casino and Bluffs Run Greyhound Park, a land-based casino and pari-mutuel facility, and Harrah�� Council Bluffs Casino & Hotel, a dockside casino facility, are located in Council Bluffs, Iowa, across the Missouri River from Omaha, Nebraska. At Horseshoe Casino and Bluffs Run Greyhound Park, the Company owns the assets other than gaming equipment, and leases these assets to the Iowa West Racing Association (IWRA), a nonprofit corporation, and it manages the facility for the IWRA under a management agreement expiring in October 2024. The license to operate Harrah�� Council Bluffs Casino & Hotel is held jointly with IWRA, the qualified sponsoring organization.
The Conrad Resort & Casino located in Punta Del Este, Uruguay (the Conrad), draws customers primarily from Argentina and Uruguay. In November 2012, the Company announced that it had entered into a definitive agreement with Enjoy S.A. (Enjoy) to form a strategic relationship in Latin America. Under the terms of the agreement, Enjoy will acquire 45% of Baluma S.A., its subsidiary, which owns and operates the Conrad, and the Company will become a 10% shareholder in Enjoy upon consummation of the agreement. Upon the closing of the transaction, which is subject to certain conditions, including the receipt of all regulatory and governmental approvals, Enjoy will assume primary responsibility for management of the Conrad. Enjoy will have the option to acquire the remaining stake in Baluma S.A. between years three and five following closing. The cl! osing of ! the transaction remains subject to a number of conditions, including regulatory and governmental approvals in both Uruguay and Chile.
The Company owns four casinos in London: the Sportsman, the Golden Nugget, The Playboy Club London, and The Casino at the Empire. Its casinos in London draw customers primarily from the London metropolitan area, as well as international visitors. The Company also owns Alea Nottingham, Alea Glasgow, Alea Leeds, Manchester 235, Rendezvous Brighton, and Rendezvous Southend-on-Sea in the provinces of the United Kingdom, which primarily draw customers from their local areas. Pursuant to a concession agreement, it also operates two casinos in Cairo, Egypt, The London Club Cairo (which is located at the Ramses Hilton) and Caesars Cairo (which is located at the Four Seasons Cairo), which draw customers primarily from other countries in the Middle East. Emerald Safari, located in the province of Gauteng in South Africa, draws customers primarily from South Africa. It owsn and operates Bluegrass Downs, a harness racetrack located in Paducah, Kentucky.
The Company owns three casinos for Indian tribes: Harrah�� Phoenix Ak-Chin, located near Phoenix, Arizona, Harrah�� Cherokee Casino and Hotel, and Harrah�� Rincon Casino and Resort, located near San Diego, California. The Company manages Caesars Windsor, located in Windsor, Ontario, which draws customers primarily from the Detroit metropolitan area, Horseshoe Cleveland casino in Ohio, which it manages for Rock Ohio Caesars LLC (ROC), a venture with Rock Ohio Ventures, LLC (Rock Gaming), in which it has a 20% equity interest, and the Horseshoe Cincinnati casino in Ohio for ROC for a fee under a management agreement that will expire in March 2033. It also has a minority interest in Sterling Suffolk Racecourse, LLC (Suffolk Downs), which owns a horse-racing track in Boston, Massachusetts, and the right to manage a future gaming facility. The Company also owns ans operates a golf course on 175 acres of prime real! estate t! hrough a land concession on the Cotai strip in Macau.
Advisors' Opinion:- [By WWW.DAILYFINANCE.COM]
John Raoux/AP From a questionable Hollywood sequel hitting the silver screen to a controversial theme park operator hoping to prove that it's not all wet, here are some of the things that will help shape the week that lies ahead on Wall Street. Monday -- Seizing Caesars Things are getting tense at Caesars Entertainment (CZR). The casino operator made waves last week as some of its creditors initiated a lawsuit claiming that Caesars is transferring assets out of the company as the first step to defaulting on its gargantuan debt. The corporate soap opera will have to play itself out, but on Monday afternoon we'll hear what Caesars has to say as it reports quarterly results. Given the brow-raising restructuring efforts, it's a safe bet that analysts will be asking more about the asset transfer and the lawsuit than the gaming giant's own operations, including massive renovations of The Quad. Tuesday -- Sweet Tooth for Candy Crush There has never been a mobile app as lucrative as King Digital Entertainment's (KING) Candy Crush Saga, paving the way for the casual gaming darling's initial public offering earlier this year. King went public at $22.50, but fears that the game's popularity had peaked late last year kept gains check. The stock currently trades below its March IPO price. King Digital has also used the game's success to introduce players to some of its other apps, though Candy Crush Saga still accounted for two thirds of King's gross bookings during this year's first quarter. We'll get fresh financials out of King on Tuesday, making this a great time to see if Candy Crush Saga is gaining momentum or if King is doing a better job of diversifying its revenue streams. Wednesday -- Get Whale, Soon SeaWorld Entertainment (SEAS) splashes in with its latest quarterly results on Wednesday. Attendance has been sliding since last year's "Blackfish" documentary made it politically incorrect to visit the marine life theme park. If there's a time for the turns
- [By Travis Hoium]
At its core,�Caesars Entertainment (NASDAQ: CZR ) is an extremely flawed company. It has a huge presence in the struggling regional gaming market, it has no exposure to gaming's biggest market, Macau, and it has $21.3 billion of debt strangling it. So how has it gained 130% this year, easily outpacing more profitable rivals? �
Top Casino Companies To Own For 2014: MGM Resorts International(MGM)
MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Travis Hoium]
Any thought that the Las Vegas gaming market would recover quickly after the recession has long since been lost, but there is a slow and steady recovery taking place in Sin City. High-end operators Las Vegas Sands (NYSE: LVS ) and Wynn Resorts (NASDAQ: WYNN ) have been seeing improved results as wealthy customers return to the casinos, but the lower end of the market, where MGM Resorts (NYSE: MGM ) and Caesars Entertainment (NASDAQ: CZR ) play, has been choppy to say the least.
- [By Travis Hoium]
Las Vegas is on a comeback and MGM Resorts (NYSE: MGM ) will benefit from its growth, but this isn't the only opportunity for the company. A new resort on Cotai and the potential for online gaming in the U.S. make this an attractive stock in the gaming market. Gaming analyst Travis Hoium goes over the company's biggest opportunities in the video below.�
- [By Travis Hoium]
The steady economic recovery in the U.S. has helped MGM Resorts (NYSE: MGM ) , Las Vegas Sands (NYSE: LVS ) , and Wynn Resorts (NASDAQ: WYNN ) turn Las Vegas from a drag to a positive line on the income statement. But for each, Macau continues to be the most important.
- [By Travis Hoium]
Now what: Online gaming is slowly being legalized across the U.S., with Nevada, New Jersey, and Delaware being the first to allow it. Boyd has a potentially lucrative partnership with bwin.party and MGM Resorts (NYSE: MGM ) , which could lead to huge profit growth, as I pointed out over a year ago. I wouldn't buy on this analyst upgrade alone, but the potential for online gaming is too big to ignore. I've built some estimates before (which can be seen here) and there's huge upside for both Boyd Gaming and MGM Resorts, but only if its legalized nationally. Until then, the potential for online gaming is minimal for Boyd.
Interested in more info on Boyd Gaming? Add it to your watchlist by clicking here.
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