Why Caesars Entertainment's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of casino operator Caesars Entertainment (Nasdaq: CZR  ) jumped 10% today, when the company announced a new CFO.

So what: The company appointed Donald Colvin, an executive from Nevada utility NV Energy, as its new CFO and executive vice president. Seriously, that's all that happened.

Now what: There's no reason to buy Caesars on this news, unless Colvin has a way to rid the company of $20 billion of debt. What may be lost in the jump later in the day is that Caesars hit an all-time low early in the day today, showing how little confidence investors have in the long-term trajectory of the company. I'm definitely not a buyer here, and certainly don't think a new CFO changes the investment thesis in Caesars.

Interested in more info on Caesars Entertainment? Add it to your watchlist by clicking here.


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

Comments from our Foolish Readers

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  • Report this Comment On November 16, 2012, at 3:38 PM, NASDAQCZAR wrote:

    BUY CZR NEW HIGHS COMING $18 in 2013 NEW CFO from ATMEL Is big he has experience with large financials. Enjoy Casinos invested $145 million in CEC this week and CEC retains 10% and gets the management fees.

    NO DEBT IS DUE UNTIL MID 2015 AND BEING REFINANCED OUT TO 2020 AND LIQUIDITY IS $3 BILLION CASH ON HAND ADDING IN THE $610 MILLION FROM PENN GAMING LAST WEEK AND THE $145 MILLION FROM ENJOY CASINOS CZR SHARES ARE POISED TO POP UP 1000%

    Travis knows nothing and ignorant BUY CZR eom

  • Report this Comment On November 19, 2012, at 12:59 PM, 4LVD1S wrote:

    Donald Colvin is NOT from Nevada utility. He has been the CFO of ON Semi for many years and did an outstanding job restructuring their huge debt. I will bet on him.

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