I most recently wrote here about my Ceasars' trade: Ceasars and El Dorado Hook Up
You also learned in this post about my drive to independent and bout it bout thanks to Master P, Diddy, Robert Smith, and countless black business men. Even though I still have a 9-5 as they say, I have to stay game ready. After spending time with the family, it's back to work. Grinding through the day's news and articles to sharpen my craft...like being in the gym or music studio. I love data analytics so I look for public news available to everyone, analyze the risk, and think deeply about what the projected outcome will be. Many will laugh because being a contrarian I often don't think too hard...I often ask what does the everyday person think will happen and usually I invest and sometimes bet that "the opposite" will occur. Sharks were circling this iconic Ceasars brand awhile back and my billionaire buddy Tilman Fertitta made no secret about it when he was trying acquire the brand I believe a year or so ago via his Golden Nugget holding. Data provided to you in plain sight, now I just needed to evaluate the business and the risk. Well, I didn't have to go far...I practically used to call Vegas a second home for a minute. I'd go 3 sometimes 4 times a year to relax, sports bet, and just let loose with my friends. Where did we often find ourselves...at Ceasars one of the most iconic and recognizable brands in the world. When El Dorado tried to slide into Ceasars DM, many said laughed and said who is El Dorado...they are smaller, less known, and even that the deal would consolidate too much power. I laughed that sounds a lot like our politics and world today. The rich get richer and leaders across the world continue to consolidate power.
So the investment was simple, the gaming industry would salivate at a gigantic new company that will document across the US (casinos are in the South, 4 in New Jersey alone, tracks in Indiana and of course, gaming in Vegas). Then COVID hit and many bailed on their position...need proof look as Ceasars stock price as it dropped to $6. Yes, I flinched as they said no one would go to Casinos a potential hot spot for infection and the gaming commissions would balk at so much consolidation. But I block out the noise and look deeper --- there was too much money to be made, too much power now in the hands of a few players...and citizens who rather be drinking and playing slots then worrying about their health. So from $6 to know it's well over $12 dollars. We get a little less than $9 bucks paid out being shareholders and the remaining balance is given to us in stock of the newly formed El Dorado/Ceasars entity.
Nice work for all who got in on the trade...now time for a new stock to invest in.
One of my many trips to Ceasars:
#datadriventrades #againstthegrain #payitforward #ifnotnowthenwhen
Other recent examples of going against the grain:
Sprint -- Traded down to $4 and Wall Street gave it a 35% chance of being approved. Outcome: T-Mobile Acquired Sprint for one of my biggest trades ever
Covid-19 -- I called for shutdowns, masks, and collective unity. Most people thought it's fake and would rather kick it at the beach. Multiple rounds of stimulus means people are hurting, bankruptcies are rising, lockdowns will continue as cases spike. Vaccines are rarely found in the first year...so the Federal Reserve can only inflate the economy for so long. Be safe and be ready
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