Excerpt from today's Wall Street Journal annotated summary:
- Summary: Two Hong Kong firms, Galaxy Entertainment and Melco International Development (both traded in Hong Kong), are competing for the gambling market in the former Portuguese colony of Macau that was returned to China in 1999. Melco has partnered with Australian firm Publishing & Broadcasting on $2.6 billion worth of luxury projects, including a six star hotel, while Galaxy is aiming at lower income, casual Chinese tourists. Melco is competing head-on with the US gambling firms. Las Vegas Sands (NYSE:LVS) already has a casino in Macau and will open another one in 2007, and Wynn Resorts (NASDAQ:WYNN) will open its first Macau casino in September.
- Comment on related stocks/ETFs: US investors in Las Vegas Sands (LVS), Wynn Resorts (WYNN) and MGM Mirage (NYSE:MGM) view Macau as pure upside opportunity. Although this articles is focused on the two Hong Kong stocks, it highlights the foreign competition to the US gambling firms.