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: Casino operator MGM Resorts International
So what: The previously announced 40.9 million-share offering was priced at $12.65 per share, representing a 7% discount to yesterday's close of $13.61. Naturally, Mr. Market is worried that the sale could be highly dilutive to MGM's long-term value.
Now what: Just when MGM investors were starting to see signs of a Las Vegas rebound, the below-market offering serves as a cold reminder of the company's still-shaky financial position. With MGM's $13 billion debt load and still no guarantee for a consumer turnaround, less-levered, more Macau-exposed casinos Las Vegas Sands
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