I didn't give my reasons.
1. They paid a price that was obviously negotiated before the CWN news, and was based on an expected boom in Casino numbers, that was factored into the price. The site may have even halved in value on the 17th October. I'd like to know what it would be worth as a resort development only.
2. I suspect the price paid will need good casino profits to pay off. It will probably not justify any significant redevelopment expenditure now, and will probably be a white elephant.
3. Probably only one casino will be located there based on past government decisions. Game theory says that wrestling a pig is a bad idea. Both casino sites will be worth less until a decision is made, and then one will be worth far more, and the other far less, assuming either goes ahead. Crown would probably be willing to invest more to gain a Brisbane area presence, that can leverage off their positions elsewhere. SGR will probably cannibalise their existing casino.
I think the media was just fed some spin, and happily published it.
SGR Price at posting:
$5.04 Sentiment: Sell Disclosure: Held
