MEC down over 50% today

[DogsUp]

Here is the link: http://news.bloodhorse.com/article/47330.htm

Now I am not a business person at all, but if the shares continue to decline, could the people who own MEC debt cancel the Breeders Cup?

[hi_im_god]

Originally Posted by DogsUp

Here is the link: http://news.bloodhorse.com/article/47330.htm

Now I am not a business person at all, but if the shares continue to decline, could the people who own MEC debt cancel the Breeders Cup?

bondholder's aren't the same of shareholders.

your question is could the bondholder's cancel the bc if mec seeks bankruptcy protection.

i'm not sure.

but it's like asking if they could burn santa anita to the ground.

why would they want to?

[DogsUp]

Originally Posted by hi_im_god

bondholder's aren't the same of shareholders.

your question is could the bondholder's cancel the bc if mec seeks bankruptcy protection.

i'm not sure.

but it's like asking if they could burn santa anita to the ground.

why would they want to?

Good point and thanks

[The Bid]

Because it has a synthetic surface thats not fit for racing, burn it to the ground

[docicu3]

Originally Posted by hi_im_god

bondholder's aren't the same of shareholders.

your question is could the bondholder's cancel the bc if mec seeks bankruptcy protection.

i'm not sure.

but it's like asking if they could burn santa anita to the ground.

why would they want to?

If MEC went bankrupt which is not an impossible event that would essentially make certain that racing in Maryland would fold. Closing Pimlico and allowing the decay of Laurel to the point where simulcast customers outnumber people in the stands most days 5-10 to 1 just shows you why Magna deserves this stock price and less.

[-BT-]

this company had to go through a reverse split 1 for 20 just to keep its listing on nasdaq, why are people surprised its been in a steady decline since that point. But yesterdays activity was pretty out of the ordinary in regards to volume.

-bt-

[blackthroatedwind]

Just a guess, but isn't one of the remaining " assets " of Magna the property, and if this financial crisis crushes real estate, aren't they left with virtually nothing?

[freddymo]

Originally Posted by blackthroatedwind

Just a guess, but isn't one of the remaining " assets " of Magna the property, and if this financial crisis crushes real estate, aren't they left with virtually nothing?

What about Frank's soft drink?

[-BT-]

company description:

Magna Entertainment Corp. acquires, develops, and operates horse racetracks and
related pari-mutuel wagering operations. The Company is also exploring the
development of media sports wagering operations, including telephone account,
interactive television, and internet-based wagering, as well as certain leisure
and retail-based real estate projects surrounding specific racetracks.

I wanted to short this stock as soon as they went through there split at around $7 and change.

There's always gulfstream?
** side note for today, new 52-week low of 1.35


-bt-

[jwkniska]

the BC is run by a total different entity, that basically takes over the race track that it's held at (at least that's how it worked when it was at AP a few years ago). The host track only gets a very small share of the $$ generated (mostly concession money) and basically no input at all on how they run it.

That's the last thing that the MEC shareholders, and especially the bond holders, would want, is for the BC to cancel. Taking away a good revenue source, would just make the bonds even more worthless.

Still trying to figure out how their slot revenue at GP was negative... that makes absolutely no sense to me at all. Those machines are set for a certain payout due to the main chip in them (or with a wheel and spring in the old-time mechanical ones) and if it's too many huge progressive jackpots that are hit... the payouts for those come directly from the slot machine company (bally's, igt, etc), as the manufacturers pay the large jackpots in return for a % of the money inserted into them... so those do not affect the casino's bottom line at all.

[Antitrust32]

Originally Posted by jwkniska

the BC is run by a total different entity, that basically takes over the race track that it's held at (at least that's how it worked when it was at AP a few years ago). The host track only gets a very small share of the $$ generated (mostly concession money) and basically no input at all on how they run it.

That's the last thing that the MEC shareholders, and especially the bond holders, would want, is for the BC to cancel. Taking away a good revenue source, would just make the bonds even more worthless.

Still trying to figure out how their slot revenue at GP was negative... that makes absolutely no sense to me at all. Those machines are set for a certain payout due to the main chip in them (or with a wheel and spring in the old-time mechanical ones) and if it's too many huge progressive jackpots that are hit... the payouts for those come directly from the slot machine company (bally's, igt, etc), as the manufacturers pay the large jackpots in return for a % of the money inserted into them... so those do not affect the casino's bottom line at all.

Yeah the slot machines pay out like 90-95% of what is put in them... so you can't lose money that way.

I'm figuring the way they lost slot revenue would be because not many people go to the casino there. Hollywood Dog Track is right near there and that is where the majority of slot players in the area go. Gulfstreams' casino has been REAL slow going. Surely things could have changed in the past year (though I doubt it), but Gulfstreams' poker room rarely has many people there.