MGM's Kerkorian Laundering Stake

Written by KaptKos

Friday, 24 April 2009 00:00

Lets get the legal and disclosure bullshit out of the way: I am short selling both stocks via Put Options on the underlying common shares of both Entities; Therefore, I have a vested interest in both of the following companies filing for Bankruptcy.

I know a lot of people have short term memory, however do you remember back in August through September or 2008 when the United States Government put a moratorium against short selling the financials? For example: BAC, ING, FNM, FRE, WFC etc. etc. However; the same government forgot to put a stop to people buying PUT Options against the underlying stock. Huh?
General Motors (NYSE:GM) is sitting at $1.67 and my favorite short position (NYSE:MGM) is sitting at $5.72. Both companies are on the brink of Chapter 11 Bankrupty.

One has the United States Government telling them to fix their financial situation; the other has Carl Icahn.
Both companies are facing deadlines. What is a deadline?

Well, if I was employed as a computer progammer, then my application better be written to satisfy my end user by a certain date, RIGHT? What happens if my software does not fullfill my end users desire?
I'd get Fired!

Shouldn't that work in the financial/investment world also, or am I a casualty of D&D and Lord of the Rings Trilogy?

Here is the truth behind MGM and the Dubai World fiasco. Mr. Kerkorian is arguing with Icahn on "Whom Owns Who!" This whole situation is that Mr. Kerkorian is laundering all his stake within MGM into this City Center Project for which Dubai World is reneging upon until there is a solid confirmation on behalf of Mr. Kerkorian.

Mr. Kerkorian and MGM has already made two payments to the contractors building the CC in excess of 100 MILLION Dollars!! MGM is carrying the load for Dubai however, nobody is paying attention to such a fact!

Now that Carl Icahn has stepped in along with other bond holders, attention has been gained to what is happening on the strip; besides legal prostitution. Once all of MGMs assets are sold; outside of bankruptcy, those proceeds will be laundered to CC and any monetary proceeds from such sale will be UN-touchable by Mr. Icahn or any other bond/debt holder.

After 30 days, which by the way, an owner of such stock has to file with the SEC of any such trades to sell any such interest in the underlying corporate stock before the public has any idea such transactions have taken place, it is totally up to the individual investor to buy or sell such stake in that stock based upon information that is a month old.

Either way, this 92 year old Kerkorian is getting away with a crime for which you or I would spend the rest of our lives in prison for. However it's perfectly fine for him to do so because he's got several million, if not billions, of dollars to protect himself with. Not to mention the fact that common stock - die hard believers will lose all their investment in such a manner.

If you want to drive to Las Vegas in a brand new Grand Pri, just don't stay at the MGM Grand Pre-Bankrupted Hotel!!!!

The opinions expressed by the writer are the opinions of the writer and their interpretation of shitheadery.

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