Archive for September, 2009

Translating Corporate Speak: Wynn [Unforeseen Upside Edition #3]

More magic from Steve Wynn — slightly delayed due to our summer escapades — on his 2Q09 conference call.

The Administration is more of a problem than they are of a help usually, if you read the headlines. Everyone is frightened to death about runaway inflation if these deficits are allowed to take place. The good news is the Senate seems to be slowing it down.
But we can’t see where it’s good for business to have that debt as a percentage of GDP go from 30% to 60% or 70%. That sort of makes us an emerging country. But maybe wiser heads will prevail and some of the things that are on the table, these amazing misunderstandings of how the system works, will get slowed down in Washington.
Right now, we are more afraid of Washington that we are the economy. We’ve got people on our backs saying don’t go to Las Vegas, which is preposterous. And people are beginning to ignore this kind of bombastic rhetoric from the White House and from the Administration, and that is encouraging.

Translation: Politicians suck and are doing their best to destroy American business.

My own feeling is the government of Macau will protect and so will the central government of Beijing and the regional government in Juhai at Guangdong province, at Guangzhou. The government will do a very enlightened and thoughtful job of protecting the interest of the citizens and the business enterprises that support the health of those businesses.
In America, we have a government that has decided that anybody that creates jobs must be bad, that the job creators should have a target painted on their back. What a remarkable misunderstanding of how the United States of America works. I tell you that that is not the case in Macau, and it’s not the case in the People’s Republic of China. And maybe we could all learn a lesson by watching what happens there.

Translation: I currently prefer to do business in a People’s Republic than the USA.

I think that the Encore tower when it debuts in a few months is going to give people a really clear insight as to what we will do next, and the level at which we will be operating in China. It is a great place to do business — really wonderful. None of the anxiety that we have at the present time in America.
I have been self insuring my employees, up to 40,000 of them, for 40 years. And everything I am reading about Obamacare is a train wreck. And I say that as an insurer — a train wreck.

Translation: No, seriously, I prefer the communist country.

We put Beyonce in here on the toughest weekend other than December 19th of the year. We did it on purpose. This is — conventions and stuff like that start the first part of August. We picked a real trough in the traditional revenue seasons. And so she is a special event as opposed to an ongoing entertainment event. And a remarkable, and as I said, lovely, lovely lady.

I should tell you that we own the life rights to the Bee Gees. And we’re working on a show about that. Garth Brooks was here as a friend. He didn’t charge. That was just a buddy singing. As a matter of fact, Garth is going to be here tonight to watch Beyonce with his wife, with Trisha Yearwood, and his three daughters — going to sit with me.
And I think that Garth Brooks is a stay-at-home dad, and take his kids to school every morning — he really does actually take his children to school every single morning — an extraordinary fellow, really extraordinary.

Translation: Please allow me the luxury of dropping a few names to remind you that I am richer and having a more interesting life than you.

This Week in Tweets for 2009-09-26

Mister Juggles Is For Real

What motivates me? In a rare interview/sale, I give readers a glimpse into my soul in this Mr. Juggles public listing:

My name is Juggles, I belive it´s like so solely cause, ever since I was aware of my paws, I had all kinds of balls in my hands, spining them, throwing them in the air and doing all sorts of tricks with them! 🙂
At the moment I´m practising a special trick by balancing them stacked towerly like on top of my head … do you think I´ll be able to pull it off?!

Recommendation: No man and no woman can ever own me…unless they have $19 at their disposal.

Translating Corporate Speak: Las Vegas Sands

Analyst Q: The commission cap agreement among the various operators. Sheldon, is there a method set up for enforcing that? And how do you expect it’ll affect your bottom line?

Sheldon Adelson, Las Vegas Sands (NYSE: LVS) Chairman: Well that’s a good question. There has been no when I was there, I committed to do it on the honor system. The breach of which will be reason to beat people up with a wet spaghetti noodle.

Translation: There is no way to enforce this collusive agreement among the local operators because this is China.

Analyst Q: Can I ask about the Sands on the peninsula? All of the revenue components are down, and yet your EBITDAR margin is up an impressive six points, and your EBITDAR is up 13%. How do you do that?
Sheldon Adelson, LVS Chairman:By cooking the books! Just kidding, just kidding. Mike, do you want to answer that?

Translation: I am the Chairman of a public company and I’m joking on a public conference call about cooking the books of a company that is probably cooking the books*. Draw your own conclusions.

*Our lawyers have advised us to note that, when saying that LVS is cooking the books, we don’t mean that in any kind of legal sense. We may mean that in a culinary sense and look forward to a 4th Quarter quiche.

Quotes Entirely Relevant to Investing 09-06-2009

Success seems to be connected to action. Successful people keep moving. They make mistakes, but they don’t quit.
-Conrad Hilton

Past Quotes Entirely Relevant to Investing

This Week in Tweets for 2009-09-05

  • A survey just asked what absolute return strategies do you recommend for the rest of the year, I said "Doing nothing" #

This Week in Tweets for 2009-09-05

  • A survey just asked what absolute return strategies do you recommend for the rest of the year, I said "Doing nothing" #

Baker Hughes Wisely Forgoes HJs for BJs

Submitted by user KB

Baker Hughes to Acquire BJ Services in $6.9 Billion Transaction

  • Share price premium of 26.9% over the frothy closing price of BJs stock on August 28, 2009
  • Pressure pumping cost synergies of $75 Million in 2010 and $150 Million in 2011
  • Combination to be immediately accretive to EPS and other easily manipulated metrics

HOUSTON, Aug 31, 2009 — Baker Hughes (NYSE: BHI) and BJ Services (NYSE: BJs) today announced that their respective Boards of Directors have approved a definitive merger agreement, which represents a transaction value of $6.9 billion for BJs based on the closing stock prices on August 28, 2009. This agreement represents a share price premium of 26.9% over the frothy closing price of BJs’ stock on August 28, 2009. Under the agreement, Baker Hughes will be coming to BJs’ stockholders with 0.6969 shares of stock and cash of $0.69 in exchange for each share of BJs common stock. Upon the happy ending of this merger agreement, current Baker Hughes shareholders will own approximately 69% of the blissfully coupled company.

“This transaction further clarifies Baker Hughes’ top-tier position preference for the global exploitation of unconventional and deepwater reservoirs,” said Chad C. Deaton, Baker Hughes Chairman, President and Chief Executive Officer. “BJs’ broads are an excellent addition to our portfolio by adding the services, technologies and talented people that are key to helping releasing the value in our reservoirs. It will better position us to thrust forward for international growth and compete in the cut-throat pressure pumping market. Although in the past I have said I would never pay for BJs, this one was too good to pass up.”

Baker Hughes expects to realize annual pressure pumping cost savings of approximately $75 million in 2010 and $150 million in 2011 as it eliminates dry-hole blind date costs, consolidates booty-call marketing efforts, and further rationalizes playing-the-field costs. Baker Hughes expects the combination to be immediately accretive to earnings per share and other easily manipulated metrics.

BJs Chairman, President and CEO Jill Stewart said: “We are very pleased to be offering our services to Baker Hughes and negotiated hard to maximize the consideration paid for our platform [stripper heels]. Their offer blows all the other offers…out of the water.”

Shareholders of Baker Hughes should note Barclays Capital or J.P. Morgan Securities did NOT act as financial advisor or render a fairness opinion in connection with this transaction, so the risk of overpaying for BJs has been significantly mitigated. In addition, the definitive merger agreement does not appear to contain any major gaping holes because Vinson & Elkins LLP were NOT retained to provide legal counsel or investigate management-controlled limited partnerships.

Conference Call

Baker Hughes and BJs have scheduled a joint conference call. To access the call, please contact the conference call operator at 1.866.637.7128, enter your corporate credit card information, and indicate you are interested in connecting to the BJs discussion. You must be 18 years or older to make this call. Management will provide a brief introduction of the transaction, explain what they are or are not wearing, and then begin the Q&A portion of the call. Please download some materials from the web (Is She Filthy) prior to the call to increase the efficiency of the discussion and ensure your phone on is on mute prior to any heavy breathing.