$0.34
0.00 (0%)
Riviera Holdings Corp. (RIV)
CAPS Rating:
The Company owns and operates the Riviera Hotel and Casino on the Las Vegas Strip and the Riviera Black Hawk Casino in Black Hawk, Colorado.
Fool.com
The World's Greatest Investing Community
RSS Headlines
Fool UK
Recs
I hear lots of CAPS players citing that the value of the land is higher than their market cap so the stock is obviously undervalued!!
LOL if only they actually owned it. The bank does and the money they owe to various other places. Take a look at a balance sheet for goodness sakes instead of just blindly saying well they are on the strip so they are obviously worth more. Namely cite LTD.
Second, sure people are still going to vegas, but they arent going to crappy places like the Riveria. Have any of you actually been or compared the RIV to other hotels? When people go to vegas they want to feel rich, even middle class people. Nicer hotels that you can stay in for cheap are going up every second that make the Riveria look stupid for being in business. I just stayed at the Venetian in a SUITE with 3 TVs and marble floors for 200 bucks a night. Who would want to stay in a roach infested place?
Some people are simply staying home. You can do everything available at a casino in the comfort of your own home without paying high hotel costs or being embarrassed that you lost. Check out the internet people, play some blackjack, craps, or poker there with very trustworthy sites.
RIVs only chance is to be bought out, and even if they are they will spend so much paying off debt they wont be able to pass along much to shareholders.
UNLV grad here from quite a while back (25yrs) and have watched folks bet against Vegas strip gaming since. So many times they say "too much debt" or "Vegas is dying" or "the little guys can't compete with the MEGAtels". Here is the reality: The Vegas strip sub-sector heads down and most in it get oversold. It goes up, and pretty much all of the Vegas strip stocks go up with it whether they should or not (based on valuation/mgt/etc). The best bet IMO (if you can hold for two years or so when Echelon Place gears up) is BYD. But RIV will most likely follow the sector back up as well. Sometimes perception beats reality and stocks like RIV will fool those who don't know the history.Also, a CAPS tip: Add more stocks if possible (you're making good picks but don't have enough to show your true rating).