{"id":13545,"date":"2014-05-09T11:28:20","date_gmt":"2014-05-09T19:28:20","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=13545"},"modified":"2014-05-09T11:28:20","modified_gmt":"2014-05-09T19:28:20","slug":"loveman-utters-heresy-adelsons-sock-puppet-theatre","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/loveman-utters-heresy-adelsons-sock-puppet-theatre\/","title":{"rendered":"Loveman utters heresy; Adelson’s sock-puppet theatre"},"content":{"rendered":"

Buried deep in Caesars Entertainments<\/strong> ‘s 1Q14 earnings call was this bombshell from CEO Gary Loveman:\u00a0\u201cWe are looking at all of our options to reduce the cost of doing business here.\u00a0All the \"loveman\"<\/a>businesses in [Atlantic City]\u00a0are under tremendous pressure<\/em>.\u201d That’s not exactly a death sentence for the Showboat<\/strong> but it got people to sit up and take notice. (Why then has Caesars been playing footsie with Revel<\/strong>?)\u00a0S&G<\/em> has to give Loveman props for the bravery it took to say that “markets can reach points when no new supply is indeed the right answer.\u00a0In some cases reducing supply is the right answer. That\u2019s the normal, self-correcting healing that you\u2019d like to see in a market like this<\/em>,\u201d In the casino industry that’s heresy. To hear most execs — and many Wall Street analysts — tell it, new supply is always<\/em> the right answer.<\/p>\n

Loveman also announced that guarantees were being taken off much of its debt<\/a>. That’s a move that must have bondholders’ innards in a twist, as the company continues to struggle.<\/p>\n