I don’t give advice. I’m just here to offer an incremental data point or spark a thought that helps you better manage your portfolio. You can think of me how you wish but know that I speak to you as though you were a friend.
In that collegial spirit I’ll offer this: If a friend tried to buy into the Caesars Entertainment (CZR) IPO, which late this morning opened for trading on the Nasdaq, I would tackle them, and then nicely take them aside for a heart-to-heart talk about self-loathing masked as investing.
I may be over emotional on this point but only because I’ve spent two hours of my life I will never get back trying to analyze the value of Caesars shares, only to find that they have no value whatsoever. To start guessing at Caesars for yourself, I invite you to pick a metric, any metric, and compare it to casino blue chip Wynn Resorts (WYNN).
Wynn has $3 billion in debt and posted $5.3 billion in revenues in 2011, up over 25% over 2010. Caesars has $20 billion in junk-rated debt supported by roughly $9b in 2011 (fourth Q not yet reported), slightly down from 2010.
