Wednesday, October 13, 2010

Thoughts on MGM Resorts (MGM) Earnings Quality

"CityCenter expects net revenues of $413 million in the third quarter, including $166 million related to residential operations, of which $28 million related to forfeited residential deposits."

Proceeds from the sales of condos - and especially from forfeited condo deposits - are one time in nature, and are clearly not a recurring revenue stream. Once and done.

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