{"id":692,"date":"2009-04-17T16:39:00","date_gmt":"2009-04-18T00:39:00","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/blogs\/dmckee\/index.cfm\/2009\/4\/17\/Exit-pursued-by-a-bear-market"},"modified":"2012-07-13T13:03:21","modified_gmt":"2012-07-13T21:03:21","slug":"exit-pursued-by-a-bear-market","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/exit-pursued-by-a-bear-market\/","title":{"rendered":"Exit, pursued by a bear market"},"content":{"rendered":"

Aside from the occasional murmur by Wynn Las Vegas<\/strong> prexy Andrew Pascal<\/strong>, executives at Wynn Resorts<\/strong> keep a low (read<\/em>: invisible) profile. Even the most assiduous follower of the casino industry would have trouble naming Wynn’s CFO off the cuff. If you answered, “David Sisk<\/strong>,” as of last Monday you’d be wrong. The contours of his golden parachute<\/a> strongly suggest an involunatry exit, softened by at least $767,000 worth of severance pay, plus a limited-time offer of stock options.<\/p>\n

One can’t fault the generosity of Mr. Sisk’s deal: He’s to be paid a year’s salary at pre-rollback rates and, from what little information is disclosed, it doesn’t appear that he’s bound to a non-compete clause. Odd that Wynn would do this without having a successor in the wings. Of course, there are more than a couple of ex-Las Vegas Sands<\/strong> and Harrah’s Entertainment<\/strong> executives updating their resum\u00e9s these days.<\/p>\n

“Encore, me no like!”<\/strong> According to Majestic Research<\/strong> analyst Matthew Jacob<\/strong>, customers are having a tizzy<\/a> over Encore<\/strong>‘s “chambered” casino layout and gravitating back to more traditional Wynn LV. So what plays in Macao<\/strong> may flop in Vegas, huh? You can’t fault El Steve<\/strong> for trying. Jacob is predicting a squishy 1Q09 for Wynn Resorts, compounded by a first-ever patch of adversity at Wynn Macau<\/strong>.<\/embed><\/object><\/p>\n

<\/embed><\/object><\/p>\n

Jacob is also the star<\/strong> of this CNBC<\/strong> segment on the gaming group, politely wiping the floor with Gabelli Global Multimedia Trust<\/strong>‘s Larry Haverty<\/strong>. The latter’s declaration that resiliency in regional casino markets bodes an imminent recovery of Las Vegas<\/strong>, though we all wish it were true, is a textbook instance of 2+2=5.<\/p>\n

Barring Atlantic City<\/strong> and the wholly aberrant phenomenon that is Illinois<\/strong>, regional markets have never slumped as badly as Vegas is doing and were much quicker to recover. Regional diversification is a double-edged sword for gaming: It’s a valuable hedge against a wipeout in one key market, but it also gives customers that much less incentive to travel to Vegas or the Boardwalk when big-budget casino properties are coming closer and closer to home.<\/p>\n

Haverty also goes off the rails vis-a-vis<\/em> MGM Mirage<\/strong>‘s Aria<\/strong> and server-based gaming, predicting successful adoption at CityCenter<\/strong> will spur a wave of emulation. Yes, but … not so fast. First, the economy will have to come firmly out of its present nosedive before casinos contemplate capex spending of that magnitude. Secondly, some of SBG’s largest potential consumers — like Harrah’s Entertainment<\/strong>, Station Casinos<\/strong>, Las Vegas Sands<\/strong> and even MGM are so badly in hock that they’re in no position to participate in a major replacement cycle. Furthermore, I don’t believe International Game Technology<\/strong> expects more than, at most, an initially slow and incremental adoption of SBG — an infiltration of casino floors, not a blitzkrieg. But if you’re looking at IGT as a long-term investment, a drawn-out replacement cycle would probably be a more desirable scenario anyway.<\/p>\n

There’s nothing in exceptionable in Jacob’s half of the interview. His more finely shaded and detailed observations contrast favorably with Haverty’s scattergun generalizations. And while I agree with the latter’s enthusiasm for Boyd Gaming<\/strong>, it’s a mite premature to be toasting Pinnacle Entertainment<\/strong>. If Pinnacle hadn’t gotten bogged down in Atlantic City<\/strong> and were making a more appreciable dent in the St. Louis<\/strong> market, then I’d raise my glass without reservation. When Pinnacle was in acquisition mode there were few assets for the taking. By the time that buffet was replenished, Pinnacle’s plate was full to overflowing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Aside from the occasional murmur by Wynn Las Vegas prexy Andrew Pascal, executives at Wynn Resorts keep a low (read: invisible) profile. Even the most assiduous follower of the casino industry would have trouble naming Wynn’s CFO off the cuff. … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[23,60,14,105,7,29,58,62,11,30,12,32,9,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/692"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=692"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/692\/revisions"}],"predecessor-version":[{"id":9321,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/692\/revisions\/9321"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}