COMPANY RESEARCH
NAME: Olivia Parker
You must complete this for each company you intend to invest in. If after
completing it, you choose not to invest in a company, that is fine (and may actually
reflect well on you!).
Date: 3/7/14
Name of company: MGM Resorts International
Symbol: MGM
OVERVIEW
Brief history of company (When did it start? How has it progressed?):
First the MGM Grand Hotel and Casino and MGM Grand Reno opened in 1978 with
the help of Kirk Kerkorian. In 1989, they announced their plans for a $700 million
dollar resort, in the theme of Hollywood. This gained them $93 million and $30
million in stock. In 2000, MGM Grand bought Mirage Resorts, giving them
ownership of Mirage, Treasure Island, Bellagio, Boardwalk, and Golden Nugget
casinos in Las Vegas. It also bought them Golden Nugget in Laughlin, Beau Rivage
in Mississippi and half a share of Monte Carlo. Between 2001 and 2004 they made
progress in branching out to more cities, such Atlantic City, Chicago and Macau.
They also attempted spreading to the United Kingdom, but this fell through. In 20042005 MGM bought Mandalay Resort Group for $7.9 billion. This made MGM Mirage
the largest gaming company in the world. In 2006, MGM Mirage announced its
partnership with Foxwoods Resort and Casino. It also announced its sale of
Colorado Bell Hotel and Casino and Edgewater Hotel and Casino for $200 million.
In 2008 MGM Mirage experienced a 67 percent plunge in third-quarter earnings due
to the halt of their $5 billion Atlantic City project. In 2009 MGM Mirage changed to
MGM Resorts International after a vote from shareholders. In 2011, MGM Macau
property was announced. Finally, in 2013, a second resort was approved to be built in
Macau.
Management structure:
Board of Directors
James J. Murren
Director/ Officer
Chairman & Chief Executive Officer
MGM Resorts International
Robert H. Baldwin
Director/ Officer
Alexis Herman
Director
President & CEO New Ventures, LLC
Roland Hernandez
Director
President, Hernandez Media Ventures
Chief Design & Construction Officer
MGM Resorts International
President & CEO CityCenter
William A. Bible
Director
Burton M. Cohen
Director
Willie D. Davis
Director
President, All-Pro Broadcasting, Inc.
Mary Chris Gay
Director
William Grounds
Director
President, Infinity World Development Corp
Directors Emeritus
Kirk Kerkorian
President and CEO Tracinda Corporation
Melvin B. Wolzinger
Location(s):
Headquarters: Las Vegas, NV
In Las Vegas
ARIA
Bellagio
Vdara
MGM Grand
SKYLOFTS at MGM Grand
The Signature at MGM Grand
Mandalay Bay
THEhotel at Mandalay Bay
The Mirage
Monte Carlo
New York-New York
Luxor
Excalibur
Circus Circus
Anthony Mandekic
Director
Secretary/ Treasurer, Tracinda Corporation
Rose McKinney-James
Director
Managing Principal, McKinney-James & Associ
Gregory Spierkel
Director
Daniel Taylor
Director
Executive, Tracinda Corporation
Railroad PassRIA
Outside Las Vegas
Circus Circus Reno
Gold Strike Jean
Gold Strike Tunica
Beau Rivage Biloxi
MGM Grand Detroit
International
MGM Macau
MGM Grand Sanya
MGM Hospitality
Products/Services:
MGM Resorts International connects customers with MGM Resorts all around the world.
These luxurious resorts provide customers with an amazing atmosphere, great food, spas,
shopping, gambling, entertainment, hotel rooms and the like.
Competitors:
In Macau
Las Vegas Sands
Wynn Resorts
Melco PBL Entertainment
In Las Vegas
Las Vegas Sands
Harrah’s Entertainment
Wynn Resorts
STATISTICS
For the previous day, what did the stock close at?
$28.39
What is the month high?
$27.90
What is the month low?
$23.80
What is the 52-week high?
$28.52
What is the 52-week low?
$11.72
P/E Ratio?
N/A
Dividend?
N/A
ANALYSIS
Is this company financially strong? What is its debt level? Is it stable? What are its
assets and liabilities? What is the cash flow? (Use the ‘financials’ tab on
marketwatch.com)
This company is financially strong partly because their stock has experienced a stable
increase over the last year.
Total Debt: 13.45B
Total Assets: 2.72B
Total Liabilities: 18.23B
Net Operational Cash Flow: 911.07M
Net Investing Cash Flow: 448.14M
Net Financing Cash Flow: 786.96 M
What do analysts forecast?
Analysts feel that this stock is overweight. Therefore, many believe one should buy more of
this stock, or just hold onto it.
Evaluate the company’s recent activity within the stock market. What might this tell
you?
MGM stock has experienced a steady upward trend over the last year. Although
there have been a few dips within the trend, it has been relatively stable. Therefore, it is a
good investment.
Has the company been in the news recently? Why? How might this affect the stock
price?
Recently MGM Resorts International has announced that they intend to spend $5$10 billion on a new resort in Japan. Since this announcement the stock’s value has
increased, showing that many people believe that MGM’s investment will provide some
returns.
What are the economic trends for the sector and industry? Think short term and
long term.
In the short term this industry is hurting due to our weak economy and the lack of
people willing to go on vacation or spend their money on gambling. In the long term this
industry will get back on its feet as the economy does. As people feel more comfortable
where they sand financially, they will be more willing to go on vacation or gamble in general.
What reasons do you have to buy stock in the company?
This company is very stable and has a history of being a safe stock. MGM is also a
major leader in its industry, which indicates that any company in this industry is going to do
well it will be them.
What reasons do you have NOT to buy stock in the company?
Gambling and vacationing in general has gone way down due to the economy and
people spending less on entertainment and vacationing. The economy probably has hurt
MGM greatly.
http://www.wikinvest.com/stock/MGM_Resorts_International_(MGM)