A GOOD SIGN FOR LOCAL EMPLOYEE'S

Implications: Columbia Sussex is smartly jumping the gun a bit by planning a talk with their new staff at the Tropicana. They need to reassure the people that they are welcome to stay and plan their future with C-S. We are all aware that there will certainly be changes at the top and the main man will wish to bring his own people to help run this valuable property. This will keep them settled until they actually take the reins and should also please the investment crowd.

Analysis: So, what's it all about? Why a meeting with all the employees prior to actually running the property? Here is the skinny on this maneuver. It's important to have the line employees know they are safe. There is always tension brewing and rumors started about all the layoffs, when in fact many more will stay than will leave. When rumors happen they always find their way to the ears of the customer. This is easily a preventable happening if this planned meeting does the job it supposed to. Having the customer involved with thought of unfairness to their employees does not sit well.

The Gaming Commission has approved C.S. for licensing and they are looking for a quick take over period. Now that President Bill Yung has actually taken the buy out of Aztar to an almost final conclusion, he must have changed his thoughts on what to do with the new property they purchased. I don't know if it was pressure from the investment community that suggested he could not just give the place a bit of a face lift and carry on business as usual or what. I wrote in a recent article that there was not enough room density, retail, food and beverage and entertainment as the place now stands to justify the cost of the purchase.  It was just poor planning to think that way and his people were surely giving him some wrong direction. The decision to have 8000 rooms makes a lot of sense and would allow them to reach out to a higher end customer. Just adding rooms will not do the trick - they must have some clever marketing and seek out an entire new customer base. The old customers need to be upgraded and exploited as room fillers. It keeps the joint running..............

Taking this venture public is a way to have investment dollars at their disposal. They will have to make serious moves to have their Stock Holders happy. Happiness for an investor is profits and good management and direction and last but not least the dividends. Will it happen - the potential is certainly there for them.