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| red sox 777 03/25/20 5:50:39 PM #422: | ERI is a super levered play. They announced a plan to buyout CZR last summer (yes, a smaller company buying a bigger company) mostly by borrowing money to do it. Not sure if it's going to go through or not. CZR is trading way below the price ERI is supposed to pay for CZR stock so the market seems to think there's a good chance the deal falls through. Supposing it goes through, you then have a casino company with a large number of B-tier casinos, almost all in the United States. And a crazy amount of debt. So it's a high risk high reward play. The total value of all their properties without the debt is many times the market cap now and many times the market cap from February even. But if the buyout of CZR happens and the recovery is slow, bankruptcy is a real possibility for the merged ERI/CZR. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! ... Copied to Clipboard! |
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