Tuesday, May 30, 2006

Wall Street analysts examining the Columbia Sussex Corp. deal to buy Aztar
Corp. tell us the $54 a share price amounts to an astronomical record $30
million an acre for the 34-acre Tropicana site at the south edge of the
Strip. They reached the estimate by looking at how much the Tropicana in
Atlantic City and Aztar's Midwest properties contribute to its financial
performance. Quietly, they say Pinnacle Entertainment was smart to bow out.
They say that combining Aztar with Columbia Sussex makes operational sense.
But the strain on finances and human resources for Columbia Sussex to
develop its first megaresort may prove overwhelming. More to come.

Nevada has more Starbucks stores per resident than any other state,
something overlooked in recent reports about the Seattle-based chain.
Industry analysts told us the reasons were a combination of three factors:
wise investments since Starbucks owns most of its stores and land in Las
Vegas has been leading the nation in appreciation, savvy marketing and a
caffeine-craze driven by Las Vegas' 24-hour economy where many casino
workers never sleep, or so it seems.

A lot of readers took exception to remarks by MGM Mirage Chairman Terry
Lanni, reported here, that it's unfair to discriminate against immigrant
workers who have helped build our economy and companies such as MGM Mirage,
and it's impractical to talk about shipping illegal immigrants back home.
Experts, however, say at reasonable rates and given government escort
policies, it could take a century to send them all back. Plus,
three-quarters of the touted 12 million figure are simply undocumented
because of U.S. government foul-ups or the intimidation it has encouraged.
Lanni seems to have a point.

Wall Street analysts are touting sales in MGM Mirage's three-tower Signature
development as a barometer of land values on the Strip. The sales price per
square foot for the hotel-condos has climbed to a death-defying $1,057 per
square foot, the cost of construction is actually coming in lower than
expected, sales are going great guns and profits are surging. Extrapolate
from that and it's not hard to imagine land at $25 million an acre,
realistic or not.

What does this tell you about your investments? By Thanksgiving, mutual
funds will be required to file the same anti-money laundering reports with
the U.S. Treasury Department as casino operators. Treasury officials say the
new requirements are part of a campaign to nab drug dealers, terrorists and
other criminals who launder money. It sounds as if Al Capone's got our
money.

Gaming Wire Editor Rod Smith can be reached by phone at 477-3893 or by
e-mail at rsmith@reviewjournal.com.