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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (52168)	8/20/2013 2:22:59 AM
From: Spekulatius	1 Recommendation Recommended By MCsweet Read Replies (2) \| Respond to of 78652

re TPCA's Lumiere acquisition- I think Icahn negotiated a good price, paying 260M$ for the Lumiere. finance.yahoo.com Key sentence: The book carrying value for Lumiere Place Casino and Hotels was $401.5 million at June 30, 2013. Also from PNK's 10K, I gather that PNK's St Louis operations , which consist of 2 about equal sized casino's hat a combined EBITDA of 98M$ last year. My guestimate is that Lumiere would be half of that, which is ~50M$ in EBITDA. This looks like a good deal for TPCA from any angle I can see. The Lumiere was build in 2008, so it's a fairly new building, which means it should need little Capex near term. I am not sure PNK is such a great capital allocator - their stock is still down compared to 2007. They did a pretty large acquisition last year and may have been under pressure to reduce debt.