The Money Grind: Las Vegas Debrief Week 1: S&M – Soros & MGM

October 1st, 2017 will be remembered by all as the largest mass shooting in United States; Location: Las Vegas, NV…….Sin City.  The famous LV motto will not hold true to this event, this time what happens in Vegas will not stay in Vegas.  The horrific Route 91 country concert ended in a shooting rampage, with all experiencing an horror one could scarcely imagine.  Approximately 59 people died and over 500 were injured.  An aura of mystery over 1 month later still shrouds this venue and event, distrust, fear and dissatisfaction as to the government’s response and explanation, runs deep.  Questions unanswered, motives unclear, number of shooters in question, and the possibility of a Government Cover Up.  With False Flag and Hoax, gun running, royal assassination attempt, helicopters and covert ops being thrown around, it is time to turn to God to save Us and then we should Follow the Money.

The location of the concert was Mandalay Bay, one of the crown jewels of MGM’s numerous holdings on the strip.  Located just down the strip, you will find one of the Founding Casinos of Las Vegas lore: Caesar’s Palace.  Situated square in the middle, the birth place as most would view it of Las Vegas as we know it today.  Caesars Palace, is one of MGM’s leading competitors.  Caesars Palace, the same casino which Soros held a $144MILLION investment in at 6/30/17, while at the same time holding a $42MILLION short position on MGM (recent purchase between 4/1/17 and 6/30/17).  What would make this man make a Net $200MILLION position in decidedly contrary investment outcomes within an industry that almost completely lies within the same geographical space?   No market indicators bearing anything but stability and growth for MGM. What would make him short the Kingpin of Las Vegas, MGM, and long the faltering and flailing Caesar’s Palace?  In fact, Caesar’s Palace had declared bankruptcy and was in full havoc for survival financially. In addition, in subsequent years had been investigated by FinCEN for Anti-Money Laundering AND was found guilty and fined $8MILLION.  Why this position arbitrary investment?  Why, would he think MGM value would go down, while Caesars went up?

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Background: Caesars Palace, after coming out of bankruptcy merged with Caesars Acquisition Co, with Caesars Entertainment: CEC being the surviving company.  Common behavior in post bankruptcy reorganizations.  Caesars Acquisition, for which Soros at Q2 held a $108MILLION investment, delisted their stock with the SEC 5 days after the Las Vegas Massacre, on 10/6/17 and is now on the way to a wind down to non existence.  2-dereg.PNG

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So where did Soros Caesars Acquisition Co investment go you ask?  The investment goes to CEC: Caesars Entertainment Corporation, the entity surviving the merger.  The shares of Caesars Acquisition Co, are converted into CEC at a rate of 1.625 per share.  The merger completed 10/6/17, 5 days after the MGM Massacre.

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Simultaneously, the same day, on 10/6/17 CEOC: Caesars Operating Co, a subsidiary to CEC: Caesars Entertainment Co), emerged from bankruptcy and in connection with the restructuring, contributed the bulk of it’s assets to a Newco, called VICI.  These assets are worth approximately $8.2BILLION to $8.4BILLION.

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This Newco, VICI, for tax purposes is structured as a REIT.  The tax consequences of this move, will allow VICI for all properties contributed to the REIT to be taxed at 0%, this is a 35% reduction of Federal Tax from when owned by Caesar’s.  Quite the tax play here, especially as it’s competitors such as MGM do not have such a beneficial tax structure.

You may ask, who precisely is the beneficiary of such a valuable set of assets and income stream distributed via bankruptcy.  Well let’s look into that…….

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Oh, look, how curious.  George Soros is the 2nd largest owner of VICI.  That is TRULY quite a feat to achieve and curiously closing 5 days post MGM Massacre.  And, not surprising………..the $42MILLION Soros short on MGM is no more.  Kind of like a little Bonus Gift, from Me to ME.  The Soros way.

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