Mirage's quarterly earnings a sign of concern

"Our bookings for July look very strong now, and August is shaping up well," said Dan Lee, the company's chief financial officer.

One financial adviser who monitors the gaming industry is pessimistic, however.

Last week, Mirage Resorts raised concern in the investment community by announcing that the company's second-quarter earnings will be 7 to 10 cents a share. That's down from the 18 cents a share the company recorded in the second quarter of 1998.

The Mirage Resorts announcement reflects a fundamental change in the Las Vegas gambling market, said Dave Ehlers, chairman of Las Vegas Investment Advisors.

"I think this Mirage thing is a lot more serious than a lot of these guys would like to say at first blush," Ehlers said.

Ehlers sees the MGM Grand hotel-casino emerging as the dominant player on the Strip.

With the recent opening of MGM Grand's new 29-suite high-roller mansion, the company of Kirk Kerkorian has surpassed Steve Wynn's Mirage Resort's as the dominant player on the Strip, Ehlers said.

The MGM Grand property appears to be luring $100,000-a-hand high rollers from its competitors, Ehlers said. Meanwhile, Mirage Resorts is working to overcome transportation access problems in Biloxi, Miss. where occupancy rates have languished at the company's 4-month-old Beau Rivage.

"I wouldn't be surprised to see further weakness in Mirage stock," Ehlers said. "This is something that isn't going to be fixed fast."

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