Aaron Cowen

MGM Resorts owns 13 Vegas properties plus two hidden assets that the market is undervaluing: a license to open a casino in Osaka, Japan (where the gambling market is larger than Macau and Vegas combined, with Chinese tourists easily accessible, and the asset could be worth ~$50/share), and a property in Dubai with 300,000 sq ft of casino-ready space if gambling is legalized (worth another $40-50/share). Additionally, Barry Diller has been aggressively buying the stock, now owns 26%, and recently bid $48/share, providing a floor. The company has also repurchased half its float in 6 years. With Vegas worth ~$60 and the hidden assets alone, the stock could be a triple from the $48 bid. Even ignoring Dubai, Japan doubles the stock. The catalyst path points to re-rating about 3 years before the Osaka opening, which is approaching.