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Gaming Stocks: So You Think MGM's Getting Hammered...

By Chuckmonster on Monday, 6th October 2008 3:24am
  » filed under MGM Mirage  comments: 1

   

MGM Dubai World Stock Losses

Here's a little positive note to our readers who happen to be vested in NYSE:MGM. You think you got it bad? Take a look at what has happened to Dubai World/Infinity World's $8.15B common stock investment into MGM.

In late February 2008 the deal for Dubai World (or whatever it is they're called) went through - 101,906,722 shares of MGM, priced at $80/share, $13 over that days close ($67) for a total investment of ~$8,152,537,760. Since that date, MGM has dropped 68%, down -$46.34 from $67 to $21 as of market close last Friday. Dubai Infinity Money Printing World, pegged at $80 on the day of purchase, has since shed 73.75%, -$59.00/share for a total loss of... wait for it...

$6,012,496,598

...roughly equivalent to what it cost to build Wynn Las Vegas and Encore.

Now, there very well may be a ton of fine print in the stock purchase agreements between Dubai Infinity Money World Inc and MGMMirage that renders this scenario bunk, but even so... there's probably at least 10 angry investors over there screaming at their financial planners : "Why Dubai into MGM for 8 billion dollars!"

It's a helluva lot funnier if you say that last sentence out loud. Trust me.



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and it only got worse today... worse for all gamin stocks...



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