CLIP: Will VICI Go Bankrupt like Caesars? (From Patreon Ep. 30)

This investor lost a lot of money on Teladoc. We review why he was so confident and what he learned from this loss.

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[JosephCarlsonAfterHours]

Hope you’re all having a great start to the weekend! I am out of the studio for a couple days this week so I didn’t have time to record an after hours episode. I’ll have more fresh content early next week. In the meantime, enjoy a few clips from our latest AMA episode.

[User_not_found_]

Joe - thanks for keeping your viewers on top of not only the upside, but the risks as well. Gives you great credibility.

[jeffbarrett]

I started a small position just today. I am going to keep it small tho and dollar cost ave over time. This may sound bat crap crazy but until VICI really diversifies outside Vegas they are one natural disaster (or otherwise) away from getting crushed. Drought from Climate Change (lake mead already way down), Hoover Dam, Some nut job, Massive Earthquake. Does that sound ridiculous? Over 30 more years those things don't sound unreasonable although admittedly terrible. Sure that could be said for many locations but most companies I have are not so tied to one physical location.

[ioritzobieta]

Vici has a big problem with MGP adq. They gonna paid 17B for 1B rent income per year (p/e 17) not factoring interest expenses on the debt (remember they are not investnment vrade yet so no cheap money) and massive stock dilution. Moreover the deal is not good because the escalator is only 2% the first 10 years ( floor of 2% or CPI thereafter), so they will earn +2% every year for the first 10y while CPI is 6% ... Also, lease revenue is quite predictable until is not. Vici's underlying clients are in a cyclical sector so even tho they have lease agreements for the following 30-40 years if the tenant goes bankurpt it wont collect any rent. We gotta remember Vici is not super diversified on his tenants either.

[sebastianj]

Few channels on YouTube 1 Sven Carlin, 2 Chuck from fastgraff Alesio and Joseph , everyone is different but all are great to watch 👍

[daanzwerus]

Hi Joseph,
Thanks for the content.
What are your thoughts on the water supply in Vegas? I once heard that it is running out and could be a big problem in the future. However, I can't find a lot of good information on it now.

[FinancialShinanigan]

Hopefully they don't make the same mistakes.

[michaelswami]

LBOs are typically when insiders borrow huge amounts of money to acquire the company. The bankruptcy will typically wipe out the debt, or convert it into some form of ownership.

[jjcling]

classic friday video joe 🤙🏽 love to see it

[mcsport]

What will happen with VICI’s financials with the MGM deal? Won’t they take on more debt?

[MikeHaism]

Did you just acknowledge it after build up a good portion in VICI?

[tylermcgill]

Verizon has over $136 billion of net long-term debt and no revenue growth 🙃

[davidm]

Joseph buddy, if your audio interface is lighting red, it means your audio is clipping.

[gonzalopenagil]

I think toys r us only went out of business in the US, because I live in spain and i have one store 10 minutes away from work

[nickgardner]

It's only when the tide goes out that you learn who has been swimming naked

[rhyswells]

I respect your analysis I always learn something, thank you

[thefrugalinvestor]

Vici is not a great buy Joseph just like i said about at&t before you bought it just my opinion. There is a lot of risk factors and not a huge upside. As a good portfolio manager or investor you have to be able to manage and control the risk. With Vici it just is not possible to do that. But thanks for this video.

[Jumpman]

Hopefully so I can stop hearing about it.

[alohastateofmind]

Look into who owns the land in Waikiki Hawaii and all those hotels. Tourism there is through the roof and not slowing down too.

[JohnnyWalkerYT]

Vici isn’t a great buy😂 Your contradicting yourself. MGM accusation is great! Vici doesn’t have a bad debt to equity ratio after that😂 I love how you try to defend your stock picks without mentioning shares outstanding