Casino EntranceIn a filing with the U.S. Securities and Exchange Commission (SEC) today, investor Kirk Kerkorian's Tracinda Corp. indicated that it may boost its stake in MGM Resorts International Inc. (NYSE: MGM) from its current 18.6% to as much as 25% in early April. MGM's stock is getting a healthy lift from the news.

According to the filing, Kerkorian expects to use working capital to make the purchase, provided, of course, that he ultimately decides to do so. The filing notes:

Tracinda continues to believe that there is substantial value in the assets of MGM Resorts and that the Company is a good long-term investment.

MGM recently received approval from the government of Macau to build a second resort/casino on the island's Cotai Strip and the casino operator has also filed an application with the state of Nevada to operate online gambling within the state. Revenue growth in Macau is expected in the range of 5% to 10% in 2013.

Shares of MGM are up 7% at $13.27 in a 52-week range of $8.83 to $14.80.


Filed under: 24/7 Wall St. Wire, Activist Investor, Casinos & Hotels Tagged: MGM

Increase your money and finance knowledge from home

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Add a Comment

*0 / 3000 Character Maximum