MGM Resorts holds undervalued Asian options
The guest argued that MGM Resorts is undervalued because the market is ignoring its upcoming Osaka casino license and a potential Dubai gaming option.
The argument
The speaker noted that Barry Diller's 26% stake and recent $48 bid put the company in play. The Osaka casino, opening in 2030, is estimated to generate $2 billion in EBITDA, while a Dubai property offers a free option if gambling is legalized. These assets could potentially triple the stock's value.
The thesis, stress-tested
✓ What validates it
- ✓Barry Diller increasing his acquisition bid
- ✓Regulatory milestones or construction progress for the Osaka casino
- ✓Legalization of gambling in Dubai
- ✓Wynn's Al Marjan casino opening in two years
▸ Risks discussed
- ▸International customer credit scaling challenges
- ▸Regulatory and licensing hurdles in Dubai
- ▸Loss of loyalty program benefits if assets are divested
Hear it yourself
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