MGM Resorts International (NYSE:MGM) (0.4%) (MGM – $27.91 – NYSE) is the Las Vegas-based owner and operator of 17 casino resorts, 73% of an associated REIT MGM Growth Properties (MGP), 56% of MGM China (2282-HK) and 50% of CityCenter Las Vegas. Following a weak 2018, MGM will have easy performance comparisons immediately following the openings of capital projects in Las Vegas and Massachusetts, and as VIP operations ramp at its second Macau casino, MGM Cotai. We continue to believe that an inflection in free cash flow generation, which we expect to begin in the fourth quarter of 2018, is the key to closing a large gap between the current stock price and our Private Market Value estimate, which is based on a sum of the parts valuation of its assets.
From Mario Gabelli (Trades, Portfolio)'s third-quarter 2018 Gabelli Asset Funds shareholder letter.
