Crown continues to recover strongly today. While all of the focus has been on the China VIP segment, there are a number of ways this company can unlock value for shareholders despite a negative outcome in the China VIP space. They have a world class management team backed by one of Australia's richest men, which means plenty of options are available to them.
1. Detained Crown employees are released without charge (the more time passes without them actually being charged suggests this outcome may be more likely)
2. Crown is forced to restructure its VIP marketing tactics but the undertakings are not materially negative to their overall earnings
3. Packer takes the opportunity from the lower share price to increase his stake, thus signaling value in the shares
4. Crown replaces any lost China VIP business with customers from other countries
5. Demerger and IPO initiatives continue as planned releasing considerable value to shareholders (internal management estimates of total valuation being approx. $14)
6. Another casino or hotel operator buys a stake in the business in order to secure participation in Crown's unique asset portfolio
7. Private equity show interest in the stock given the stable cash flows which make implementing a private equity transaction relatively easy
CWN Price at posting:
$10.96 Sentiment: None Disclosure: Not Held
