In an interview with the LV Sun, CEO Murren pitched CityCenter as an attractive property for LV locals. The reader comment section shed some light on the viability of that assertion.



MGM’s CEO gave an interview with Jon Ralston from the Las Vegas Sun this week to discuss the opening of the $8.5 billion project CityCenter on the Las Vegas Strip.  The project is opening in one of the worst economies Vegas has ever seen.  Predictably, Murren is expanding his duration from a “return on investment perspective” to “over a five-or-ten-year period of time”.  I'm sure the ROI analysis will include cannibalization. 


Jim Murren believes that the art and architecture at CityCenter will “inspire” people to the degree that local Las Vegas residents will come to CityCenter.  He contends that locals, himself included, will warm to a property that creates some semblance of a downtown urban environment that Vegas previously lacked.  Murren dispelled the notion that another casino, hotel, mall, or arena is what Las Vegas needs, “but”, he said, “what we could use, what we do need is something to inspire people.  I think the architecture will.  I think the public spaces will”.  MGM has an uphill battle.  Traditionally, locals have preferred the Boulder Strip, North Las Vegas, Summerlin, and Henderson casinos to the more expensive and tourist-orientated, congested Strip.  


The Las Vegas Sun’s online version of this piece, entitled, “Locals will visit Strip to go to CityCenter”, was met with almost universal dissidence from readers via the discussion section below the article.  Most of these responders are undoubtedly Las Vegas area residents so their opinions should not be discounted.  Indeed, they are very telling.  Some of the more notable reader reactions include:


“Umm... inspire them to do what exactly? Spend more money?”


“LOL. And how do you make money from people wandering around enjoying the environment? Last I checked you make a lot more money from the guy sitting in front of the slot machine than the guy sitting on the park bench admiring an obscure piece of art.”


“Honestly, if City Center wants to attract locals, then let us know when Crystals has a Wal-Mart and a Dollar Loan Center on site.”


“Who wants to fight the traffic then park in a garage that is 4 miles from the Casino and walk? Not me… Murren - you are totally out of touch!  All I see with City Center is a big impersonal Monster that I have no intention of entering.”

Did the US Economy Just “Collapse”? "Worst Personal Spending Since 2009"?

This is a brief note written by Hedgeye U.S. Macro analyst Christian Drake on 4/28 dispelling media reporting that “US GDP collapses to 0.7%, the lowest number in three years with the worst personal spending since 2009.”

read more

7 Tweets Summing Up What You Need to Know About Today's GDP Report

"There's a tremendous opportunity to educate people in our profession on how GDP is stated and projected," Hedgeye CEO Keith McCullough wrote today. Here's everything you need to know about today's GDP report.

read more

Cartoon of the Day: Crash Test Bear

In the past six months, U.S. stock indices are up between +12% and +18%.

read more

GOLD: A Deep Dive on What’s Next with a Top Commodities Strategist

“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney in this edition of Real Conversations.

read more

Exact Sciences Up +24% This Week... What's Next? | $EXAS

We remain long Exact Sciences in the Hedgeye Healthcare Position Monitor.

read more

Inside the Atlanta Fed's Flawed GDP Tracker

"The Atlanta Fed’s GDPNowcast model, while useful at amalgamating investor consensus on one singular GDP estimate for any given quarter, is certainly not the end-all-be-all of forecasting U.S. GDP," writes Hedgeye Senior Macro analyst Darius Dale.

read more

Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

read more

People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

read more

UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

read more

Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

read more

Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

read more

An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

read more