Caesars Entertainment: 1-Star Stocks with Dangerous Debt Loads

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Caesars Entertainment (Nasdaq: CZR  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Caesars and see what CAPS investors are saying about the stock right now.

Caesars facts

Headquarters (founded)

Las Vegas, Nevada (1937)

Market Cap

$644.7 million

Industry

Casinos and gaming

Trailing-12-Month Revenue

$8.9 billion

Management

Chairman/CEO Gary Loveman
President of Operations Thomas Jenkin

Return on Equity (average, past 3 years)

2.7%

Cash / Debt

$1.2 billion / $20.8 billion

Competitors

Boyd Gaming (NYSE: BYD  )
MGM Resorts International (NYSE: MGM  )
Trump Entertainment Resorts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 79% of the 63 members who have rated Caesars believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star 80brown, succinctly summed up the Caesars bear case for our community:

You can only push your debt off for so many years. The move to expand internationally but only on the hospitality side proved fatal. Caesars has its own "fiscal cliff" approaching, which will likely hit by end if first quarter next year. The only drawback to making an underperform call is the likely run-up from a short squeeze that might hit early January when panicked brokers force all the [shorts] to cover prematurely.

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Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

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  • Report this Comment On November 14, 2012, at 11:50 PM, NASDAQCZAR wrote:

    Brian Pacampara??? WHO??? you are a total NOBODY who should be working at McDonalds at best, this is a poor article and baseless and slander and liable and bashing a $21 billion dollar enterprise that has tons of cash and liquidity over $3 billion cash and credit available and refinancing its debt opening new casinos in Maryland and Ohio, and Suffolk Downs in Mass...

    CAESARS runs Atlantic City period, you do not know what you are talking about son... You belong in a Zoo this is a one rated article one star out of 5 for awful and ignorant.

    NO DEBT IS DUE UNTIL MID 2015 and now being refinanced to 2020 you are a LOSER and a BUM STOP LYING ABOUT CAESARS STOP YOUR SHORT SELLING SCHEME AND SCAM, trying to scare people to sell their shares of CZR is irresponsible and the CEO Loveman was on a real media outlet PBS Nightly Business Report with a real journalist and is very positive and bullish on the future, CZR just monetized their casino in Chili with Enjoy Casinos on Monday will get $145 million and own 10% as well last week closed on sale of St. Louis Harrahs $610 Million in the door, the liquidity is over $3-4 billion cash and credit on hand and the Macau golf course is up for sale it will bring in another $600 million.

    Bottom line the Motley Fools are true FOOLS as in idiots lying and bashing American companies for attention with no facts and no morals, the only people who would be hurt by bashing CZR is the employees whose hours would be cut stop hurting the little guy and this yellow journalism should be banned from Yahoo which i will discuss with their management to BAN motely fool from publishing and getting unwarranted traffic to their sites for fraudulent vicious lies about Caesars repeatedly BS articles bashing this company daily is shameful. All of the new casinos will be open and generating revenues by the time any debt is due this is just disgraceful these lies about Caesars a true American success story. BUY CZR were going up 1000% on online gaming approval and new casinos opening in Baltimore and Cincinnati ignore these blatant lies by the fools eom

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