• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

Chart & Bullets:  While MGM has successfully set the Street’s focus on Q1 RevPAR, our favorite metric is taking a turn for the worse.

  • We liked MGM for most of this year – one of the reasons was the upturn in Strip slot volume
  • The MGM story has centered around RevPAR gains, particularly in Q1 2014 as a few big conventions cycle through.  However, we still view slot volume as the most important metric and volume is likely moving lower through the end of the year.
  • The Q1 focus sets up the MGM story for disappointment as investors lose sight of the slot (and earnings?) issue going forward. 

C&B: STRIP SLOT VOLUME ROLLING OVER - ll