Ed’s Daily Notes for March 12th   Leave a comment

Associated Press: Republican Jolly wins Fla. congressional race

Normally, one congressional election doesn’t have big implications, but this one does:

Republican David Jolly defeated Democrat Alex Sink on Tuesday in a Tampa-area House district where President Barack Obama’s health care overhaul got its first test ahead of November’s midterm elections and both sides spent millions auditioning national strategies.

With almost 100 percent of the vote counted, Jolly had 48.5 percent of the vote to Sink’s 46.7 percent. Libertarian Lucas Overby had 4.8 percent. The election was to replace 42-year Republican Rep. CW Bill Young, who died in October of cancer, and the evenly divided district had been considered a toss-up.

The implications of the dueling messages for the midterm elections inspired both parties to call in star advocates like former President Bill Clinton and former vice presidential candidate Paul Ryan, in addition to blanketing the district with ads, calls and mailings. More than $11 million has been spent on the race, according to the Sunlight Foundation, a nonprofit group that tracks government information.

I won’t say “Republicans will win easily in November” because of this election, but I would view it as an indication that the odds favor the Republicans. As an investor, I have to view the stronger possibility that Republicans might control both the Senate and House for President Obama’s last 2 years in office. However, will it be a veto-proof majority? Without that, the next 2 years are still no different than the last 2 years.

Las Vegas Review-Journal: Caesars Entertainment reports $1.756 billion in quarterly loss on Atlantic city weakness

This isn’t as bad as it looks:

Caesars Entertainment Corp. said Tuesday it lost $1.756 billion in the fourth quarter because of a deteriorating market in Atlantic City, which resulted in nearly $2 billion of noncash impairment charges to the casino company’s balance sheet.

Las Vegas-based Caesars said in a statement the company’s net revenue for the period ended Dec. 31 rose 3.2 percent to $2.078 billion,.

A year ago, Caesars’ said its net loss was $435.8 million.

…The net loss didn’t surprise investors. Caesars revealed a potential range for the loss earlier this month when the company announced plans to sell Bally’s Las Vegas, The Quad, The Cromwell and Harrah’s New Orleans to its 58-percent owned subsidiary, Caesars Growth Partners.

In 2013, the company spun off Caesars Growth Partners as a separate publicly traded company to focus on expansion and to help reduce Caesars’ gaming industry-high debt, which is $20.9 billion, down from $23 billion in previous quarter.

Even though this isn’t as bad as the headline makes it out to be, I dislike the idea of selling your losers to a subsidiary you own. That just smacks of Enron.

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Posted March 12, 2014 by edmcgon in News, Politics, Stocks

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