Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Casino Business Review LLC

Extensive experience in marketing and development in the Asian gaming market

Global Gaming and Casinos Industry

Equity Bottom-Up

<ul>
<li>What may appear duplicative asset segment in MGM actually spreads risk and improves overall margin of safety for both stocks.</li>
<li>MGM China is a pure Macau play while MGM Resorts International is a strong bet on global reach of its gaming properties.</li>
<li>Buying both is insurance against a possible recession downside because of the geographically and demographically diverse customer bases of both enities.</li>
</ul>


What may appear duplicative asset segment in MGM actually spreads risk and improves overall margin of safety for both stocks.
MGM China is a pure Macau play while MGM Resorts International is a strong bet on global reach of its gaming properties.
Buying both is insurance against a possible recession downside because of the geographically and demographically diverse customer bases of both enities.


MGM China and Its US Parent Bought Together Maximizes Potential Returns on Covid Endgames

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Star Entertainment Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/star-entertainment-group-ltd" target="_blank" data-smartkarma-citation="entities:926:1" rel="noopener">Star Entertainment Group (SGR AU)</a> will raise A$800 million with a fully underwritten 3:5 pro rata accelerated non-renounceable entitlement offer and institutional placement at A$1.20, a 13.6% discount to TERP.</li>
<li>The equity raise of A$800 million will maintain leverage within the targeted 2.0x-2.5x net debt/EBITDA long-term range in our fines high-case scenario.</li>
<li>Adjusting for the raise, Star trades at a discount to peers. While the shares will be under short-term pressure due to the raise, there is long-term value for the brave. </li>
</ul>



Star Entertainment Group (SGR AU) will raise A$800 million with a fully underwritten 3:5 pro rata accelerated non-renounceable entitlement offer and institutional placement at A$1.20, a 13.6% discount to TERP.
The equity raise of A$800 million will maintain leverage within the targeted 2.0x-2.5x net debt/EBITDA long-term range in our fines high-case scenario.
Adjusting for the raise, Star trades at a discount to peers. While the shares will be under short-term pressure due to the raise, there is long-term value for the brave. 


Star Entertainment (SGR AU): A$800m Highly Dilutive Raise to Fix the Balance Sheet

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/star-entertainment-group-ltd" target="_blank" data-smartkarma-citation="entities:926:1" rel="noopener">Star Entertainment Group (SGR AU)</a> scored an own goal by failing to provide an update on the balance sheet in the update on 13 February. The results are next week.   </li>
<li>There is a whirlwind of uncertainty surrounding potential fines and Star is in desperate need to recapitalise its balance sheet to avoid breaching covenants. </li>
<li>Our leverage scenarios suggest an equity raise of A$250-500 million is required. Despite the share price fall, we would steer clear until the details of its equity raise are disclosed.</li>
</ul>



Star Entertainment Group (SGR AU) scored an own goal by failing to provide an update on the balance sheet in the update on 13 February. The results are next week.   
There is a whirlwind of uncertainty surrounding potential fines and Star is in desperate need to recapitalise its balance sheet to avoid breaching covenants. 
Our leverage scenarios suggest an equity raise of A$250-500 million is required. Despite the share price fall, we would steer clear until the details of its equity raise are disclosed.


Star Entertainment (SGR AU): Entertaining Known Unknowns

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>MGM is one of the major operators of casinos, hotels, entertainment resorts, and sports betting platforms in the world.</li><li>The company’s domestic business has been strong with the Las Vegas Strip reaching new highs for revenues but its recent bottom-line has been negative.</li><li>Cosmopolitan Las Vegas continued to surpass the company's early projections while operating under MGM Resorts' direction and had one of its finest quarters.</li></ul>

MGM is one of the major operators of casinos, hotels, entertainment resorts, and sports betting platforms in the world.The company’s domestic business has been strong with the Las Vegas Strip reaching new highs for revenues but its recent bottom-line has been negative.Cosmopolitan Las Vegas continued to surpass the company's early projections while operating under MGM Resorts' direction and had one of its finest quarters.

MGM Resorts International: Detailed Credit Analysis & Financial Strength Evaluation Report

MGM Resorts International / Equity Bottom-Up

<ul><li>This is our first report on MGM, one of the largest owners and operators of casinos, hotels, and entertainment resorts in the world.</li><li>The company reported a mixed quarterly result, surpassing Wall Street expectations in terms of revenues but reporting wider than expected losses.</li><li>Cosmopolitan Las Vegas continued to surpass the company's early projections while operating under MGM Resorts' direction and had one of its finest quarters.</li></ul>

This is our first report on MGM, one of the largest owners and operators of casinos, hotels, and entertainment resorts in the world.The company reported a mixed quarterly result, surpassing Wall Street expectations in terms of revenues but reporting wider than expected losses.Cosmopolitan Las Vegas continued to surpass the company's early projections while operating under MGM Resorts' direction and had one of its finest quarters.

MGM Resorts International: Initiation of Coverage – Business Strategy & Key Drivers

United States

MGM Resorts International operates gaming, hospitality and entertainment resorts.  The Company owns properties in Nevada, Mississippi and Michigan in the United States; and owns interests in properties in Nevada and Illinois in the United States, and Macau. MGM Resorts also offers hospitality management services for casino and non-casino properties around the world.

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MGM Resorts International (MGM US)

MGM China and Its US Parent Bought Together Maximizes Potential Returns on Covid Endgames

Both MGM entities present a compelling case to own both the parent and Macau unit as both the US and Macau post covid recovery surge is not as yet...

Howard J Klein

Star Entertainment (SGR AU): A$800m Highly Dilutive Raise to Fix the Balance Sheet

Adjusting for the raise, Star trades at a discount to peers. While the shares will be under short-term pressure due to the raise, there is long...

Arun George

Star Entertainment (SGR AU): Entertaining Known Unknowns

Our leverage scenarios suggest an equity raise of A$250-500 million is required. Despite the share price fall, we would steer clear until the...

Arun George

MGM Resorts International: Detailed Credit Analysis & Financial Strength Evaluation Report

MGM is one of the major operators of casinos, hotels, entertainment resorts, and sports betting platforms in the world. The company’s domestic...

Baptista Research

MGM Resorts International: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on MGM, one of the largest owners and operators of casinos, hotels, and entertainment resorts in the world. The company...

Baptista Research

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