By Stock Wizard

MGM Mirage (NYSE: MGM), the world's second-largest gambling company by revenue, is scheduled to release its fiscal fourth-quarter 2009 financial results before the opening bell on Thursday, February 18, 2010. Analysts, on average, expect the company to report a loss of 13 cents a share on revenue of $1.46 billion. In the year ago period, the company posted a loss of 11 cents per share on revenue of $1.62 billion.

MGM Mirage, through its subsidiaries, owns and operates casino resorts in the United States. The company's resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club.

In the preceding third quarter, the Las Vegas, Nevada-based company posted a net loss of $750.39 million or $1.70 per share, compared to a net profit of $61.28 million or $0.22 per share in the year-ago quarter. Revenue slipped 9% to $1.53 billion from $1.78 billion last year. Analysts, on average, expected the company to report a loss of $0.08 per share on revenue of $1.47 billion.

Like many gaming companies, the firm's casino operations has been hit hard by the recession, due to lower traffic, shorter stay and decreased spending by the visitors.However, the financial outlook for Las Vegas Sands Corp. has improved amid a rebound in consumer spending and global economic revovery. Recently, Nevada’s Gaming Control Board said that the Las Vegas Strip gambling revenue rose 5.9 percent in December, the second straight monthly gain. Strip proceeds climbed to $502.2 million in December from a year earlier.

Yet another bright spot is Macau's outlook. The company is poised to benefit from more friendly gaming policies from the local government, limited supply of new gaming tables in the near term, and expectation of no further stringent enforcement by the Chinese government over tourist visitations to the enclave support stable growth for the sector's revenues. The casino operator is also expected to get a boost from Chinese New Year celebration. According to Portuguese news agency Lusa, casino revenue in Macau jumped almost 65 percent to a monthly record of 14 billion patacas ($1.75 billion) in January from a year ago, beating the 12.6 billion patacas recorded for October 2009. A new daily record of more than 800 million patacas was also reached in January, Lusa said, citing data from the casino operators.

MGM Mirage's CityCenter resort complex opened its door to the public just before Christmas to critical acclaim. CityCenter, an unprecedented urban metropolis on the Las Vegas Strip, is a joint venture between MGM Mirage and Infinity World Development Corp, a subsidiary of Dubai World.

The firm has taken several steps to improve its financial position. It is seeking amendments to credit agreements that would extend the maturity for a substantial portion of $5.55 billion of senior debt. Recently, MGM Mirage said it was looking to extend the maturities to Feb. 21, 2014, from Oct. 3, 2011, and has asked lenders to approve the change by later this month. In a statement, the company cited "strong initial support" from leading lenders for the proposed accord and said it was working with the rest of its lender syndicate. The company is also planning a Hong Kong IPO that could raise a billion dollars. Meanwhile, according to media reports, MGM Mirage is planning to sell its 50% stake in the Borgata casino resort in Atlantic City, New Jersey. MGM, which partners with Boyd Gaming to manage the Borgata property, is reportedly asking for between $700 million and $850 million for its half.

Shares of the casino operators have spiked ahead of earnings reports. In terms of stock performance, MGM Mirage shares have rallied 130 percent over the past year.

Full Disclosure: None.

By Stock Wizard

Dell Inc. (NASDAQ: DELL), the world's third-largest computer manufacturer, is scheduled to release its fiscal fourth-quarter 2009 financial results after the closing bell on Thursday, February 18, 2010. Analysts, on average, expect the company to report earnings of 27 cents a share on revenue of $13.85 billion. In the year ago period, the company posted earnings of 29 cents per share on revenue of $13.43 billion.

Dell Inc., together with its subsidiaries, engages in the design, development, manufacture, marketing, sale, and support of computer systems and services worldwide.

In the preceding third quarter, the Round Rock, Texas-based company reported that its third quarter profit plunged 54% from last year, as revenue dropped and margins shrank amid global market share loss and weak corporate demand. Net income totaled $337 million or $0.17 per share, compared to $727 million or $0.37 per share, for the year-ago quarter. Revenue for the third quarter fell 15% to $12.90 billion from $15.16 billion in the same quarter last year. Analysts, on average, expected the company to earn $0.28 per share on revenue of $13.18 billion. Gross margin for the quarter fell to 17.3% from 18.8% a year ago, while operating margin declined to 4.5% from 6.7% last year.

The company expects fourth quarter revenue to improve over the third quarter. Dell expects seasonal demand improvement in its consumer business, while demand in public is typically lower during the quarter. Dell responded to lackluster PC sales growth by expanding offerings of non-PC electronics and increasing their presence in developing countries such as India and China.

Dell is likely to benefit from an uptick in technology spending. PC sales particularly got a boost from stronger consumer demand, especially during the holiday season and following the rollout of Windows 7, Microsoft Corp.'s new operating system.According to technology research firm Gartner, worldwide PC shipments surpassed 90 million units in the fourth quarter of 2009, a 22.1% increase from last year. It was the strongest quarter over quarter growth rate the worldwide PC market has experienced in the last seven years. Dell's worldwide PC shipments increased by 5.7% to 10.39 million units from 9.83 million units a year-ago.

Early this month, Dell agreed to acquire KACE, a systems management appliance company with solutions tailored to the requirements of midsized businesses and public institutions. The acquistion is expected to help it compete in the small and medium-sized business hardware market.

The company's stock currently trades at a forward P/E (fye 30-Jan-11) of 11.07 and PEG Ratio (5 yr expected) of 1.24. In terms of stock performance, Dell shares have gained 53 percent over the past year.

Full Disclosure: None.

By stockOzone team

The central bank has stepped in to help home loan customers who opted for floating interest rates but have not get any benefit in almost two years.

The RBI has sought clarity from the Indian Banks Association (IBA), asking why new home loan buyers were lured by lower interest rates but the lower rates did not apply for existing borrowers.

In the letter written to the IBA, the RBI wants to know how existing borrowers are getting the benefit of reduced home loan rates.

Most of the schemes announced with reduced rates are applicable only to new customers and this has been a point of contention among existing borrowers.

Latha Venkatesh, CNBC Banking Editor, reports the RBI’s letter almost accuses banks of being discriminatory. The “problem” is for customers who have floating home rates,” says Venkatesh.

Customers expect that interest rates will fall but the experience in one-and-half years has been that banks have not passed on the rate cuts to customers though the RBI has slashed interest rates.

Banks have offered lower rates for new customers but not to their existing ones. RBI has flayed this policy in its “very, very hard-hitting” letter to the Indian Banks Association.

The letter is written in a series of questions and in it the RBI is almost accusing the banks of being discriminatory.

The IBA, on its part, has told the central bank home loan rates cannot be made uniform for all but added it would take up the matter with banks’ chief executives.

The IBA, however, admitted the downward adjustment for lending rates was slower than it should have been, sources said.

Disclosure: Author does not own any of the stocks discussed here.

By stockOzone team

Insurer Hartford Financial Services Group Inc. spent $520,000 in the fourth quarter to lobby the federal government on insurance regulation reform, consumer protection rights and other issues, according to a recent disclosure report.

That’s down from the $690,000 the Hartford, Conn.-based life insurer spent in the year-ago period during the height of the financial crisis, and the $540,000 it spent in the 2009 third quarter.

Last year, the government gave six life insurers, including Hartford Financial, approval to tap its $700 billion bailout program. The company received $3.4 billion in funds in late June.

Hartford Financial also lobbied on issues including the National Insurance Consumer Protection Act, flood insurance, workers’ compensation, drywall safety, health care reform, retirement securities, taxes and financial regulatory reform.

In the October-December period, the company lobbied Congress, the Securities and Exchange Commission, and the Labor Department, according to the report filed Jan. 20 with the House clerk’s office.

The Obama administration has proposed a series of measures to tighten the reins on financial institutions in hopes of preventing a recurrence of the crisis that struck both Wall Street and Washington in the fall of 2008.

Disclosure: Author does not own any of the stocks discussed here.