Caesars Entertainment (Nasdaq:CZR) is about to release earnings. Ponder this Bear Case Scenario:
Leverage Leverage and Leverage. The balance sheet is terrible and financial risks abound. It’s just that simple.
Caesars operates in six different markets and has cut throat competition in five. The economy is recovering at a snail’s pace. People are just not gambling like they used to. Caesars is not a compelling destination.
Because of high debt and low spending customers Caesars is not updating as quickly as they should. Properties will become tired looking and not attractive.
George Gutowski writes from a caveat emptor perspective.