Casino investors may have hit the jackpot with MGM Mirage. Shares soared on Monday!
The move higher followed reports that the casino operator hired Morgan Stanley to handle the sale of two high profile properties -- the MGM Grand Detroit and Biloxi's Beau Rivage in Mississippi
Possible buyers include rivals and private equity bidders, including LA-based private equity firm Colony Capital LLC and Australian gambling magnate James Packer.
The property sales are seen as key to helping prevent MGM Mirage from buckling under its debt obligations and to fund the troubled CityCenter project it jointly owns with Dubai World.
Deutche Gaming Analyst Bill Lerner likes the move. He tells Fast Money "(casino) balance sheets need some sort of resolution and selling assets will help that."
What’s the trade?
Hard to say what it is...but we can tell you what it isn't. “I think anyone shorting MGM betting on bankruptcy is going to get smoked,” he says.