Why The Mayweather-Pacquiao Fight Could Ignite MGM And Signal A Strong Buy Now
Howard Jay Klein • 11 Comments
Howard Jay Klein • 11 Comments
Tue, Jul. 26, 10:57 AM
- The Macau casino sector is riding high after Las Vegas Sands (LVS +4.7%) pointed to a "stabilization" trend in the mass market segment.
- The focus by investors is starting to pivot to new projects with Wynn Palance (August 22) and Sands Parisian (September 13) openings around the corner. Though extra traffic and non-gaming sales are anticipated, there could also be some pricing pressure for room rates.
- Analyst note that the revenue comparisons will start to ease for companies in Q3 just as the new properties come on line.
- Advancers on the day include Wynn Resorts (WYNN +5.1%), MGM Resorts (MGM +2%), and Melco Crown Enterprises (MPEL +5.4%).
- Previously: Signs of improvement for Las Vegas Sands in late Q2 (July 25)
Mon, Jul. 11, 3:22 PM
- Macau casino stocks race higher after forecasts from UBS and Telsey Advisory both point to a strong start to July.
- Telsey estimates year-over-year growth of 8% after ten days of the month, inclusive of electronic gaming revenue.
- Other firms are less optimistic after adjusting for the extra weekend (Nomura) and dissecting the entire month (Wells Fargo).
- Notable gainers on the day include Melco Crown (MPEL +5.3%), Las Vegas Sands (LVS +4.3%), MGM Resorts (MGM +0.4%), and Wynn Resorts (WYNN +5.3%).
Fri, Jun. 17, 9:19 AM
- Shares of MGM Resorts (NYSE:MGM) are on watch after management reset some financial targets ahead of the expectations of analysts.
- The company said at its Analyst and Investor Day presentation that its profit growth plan will result in $400M in extra annual EBITDA, better than the $300M originally forecast.
- Wall Street was listening: Deutsch Bank backed its Buy rating and $29 price target on MGM, while Telsey moved its PT to $29 from $27.
- MGM Analyst and Investor Day presentation webcast
- MGM +3.02% premarket to $24.89.
Mon, May 2, 9:53 AM
- Macau casino stocks race higher after the April revenue tally for the gambling area came in ahead of expectations, -10% Y/Y vs. -14% expected.
- Wynn Resorts (WYNN +5.1%) is leading the sector, while Las Vegas Sands (LVS +3.6%), MGM Resorts (MGM +1.6%), and Melco Crown (MPEL +4.2%) are all solidly higher.
- Asian-based Union Gaming Securities says the April report was very solid on a sequential comparison (April revenue is typically lower than March) and expects the momentum to continue into May.
- Previously: Macau gaming revenue down 9.5% in April (May 1)
Thu, Apr. 21, 9:09 AM
- Macau-related stocks are on watch after results from Las Vegas Sands tip off that Macau spending is still under pressure.
- Though the casino operator is convinced that the mass market is stabilizing, that trend didn't show up in Q1. Non-gaming revenue was also below expectations and other Asian properties were hit hard by F/X translation.
- Previously: Las Vegas Sands misses by $0.17, misses on revenue (April 20)
- Previously: Las Vegas Sands in retreat after Q1 profit disappoints (April 21)
- Premarket: Wynn Resorts (NASDAQ:WYNN) -2.20%, MGM Resorts (NYSE:MGM) -1.97%, Melco Crown (NASDAQ:MPEL) -3.48%.
Thu, Apr. 7, 9:28 AM
- Shares of Wynn Resorts (NASDAQ:WYNN) are flying in premarket trading as investors wake up to the news that Steve Wynn has plans for expansion in Las Vegas.
- The company's decision to go the Disney direction (attractions, entrance tickets, fireworks) with its new project on the Strip could turn out to be a turning point in Las Vegas history (similar to Wynn's Mirage gamble in the early 1990s), say some analysts. Watch for reactions from Caesars Entertainment (NASDAQ:CZR) and MGM Resorts (NYSE:MGM) as Vegas pushes the family entertainment destination angle. MGM's new 20K-seat arena is also a factor in that shift.
- During last night's presentation to investors, Wynn Resorts also updated on resorts in Cotai and Boston. Also of note, the company says it's targeting a debt-to-property EBITDA ratio of 3X by 2019 from 5.8X last year. That could please investors looking for the company to reign in interest costs.
- Previously: Wynn Resorts plans major Strip project (April 7)
- WYNN +6.1% premarket to $95.15.
Fri, Apr. 1, 10:31 AM
- MGM Resorts (MGM -0.7%), Wynn Resorts (WYNN -1.9%), and Las Vegas Sands (LVS -2.8%) are trading weak after March numbers from Macau came in on the disappointing side earlier today.
- Purer plays Galaxy Entertainment (OTCPK:GXYEF -5.4%) and Melco Crown (MPEL -2.4%) are having an even rougher day, while Wynn Macau (OTCPK:WYNMF), Sands China (OTCPK:SCHYF), and MGM China (OTCPK:MCHVF) were all sharply lower in Hong Kong trading.
- Previously: Macau gaming revenue disappoints in Marchs (April 1)
- Now read Bearish On Macau, And Short Melco Crown
Fri, Mar. 18, 9:18 AM
- Casino stocks are setting up for a day of gains after Macquarie Research upgrades the sector to Neutral. The investment firm thinks the worse month-over-month Macau revenue declines are now firmly in the past.
- Macquarie thinks Macau casino revenue will fall 6% this year, an improvement from a prior forecast of a 13% decline.
- Premarket movers: Melco Crown (NASDAQ:MPEL) +3%, Wynn Resorts (NASDAQ:WYNN) +2.8%, MGM Resorts (NYSE:MGM) +2.2%, Las Vegas Sands (NYSE:LVS) +1.4%.
Wed, Mar. 2, 6:52 PM
- MGM Resorts International (MGM +1.7%) has an agreement to sell the Shops at Crystals mall in Las Vegas to a Simon Property Group (SPG +0.4%) partnership, according to media reports.
- The deal's for $1.13B and could be wrapped up soon, a source told Bloomberg. The mall is part of the $9B CityCenter complex on the Las Vegas Strip.
- MGM had put the mall up for sale three years ago but pulled it due to unsatisfactory offers. Vegas tourism -- and real estate values -- have grown since then, however.
- After hours: MGM +0.2%; SPG flat.
Tue, Mar. 1, 11:28 AM
- Macau casino stocks are higher after strong Lunar New Year holiday traffic led to nearly flat year-over-year revenue growth in February.
- SA contributor Howard Jay Klein pulls out some positive reads from the Macau traffic read. He notes that the increase in visitations helped to boost room occupancy rates and led to better-than-anticipated gaming numbers. Sources tell Klein that the mass and premium mass segments performed well with the "fear factor" receding.
- "I expect a continuation of [year-over-year] flat and then an uptrend beginning in mid-Q2, tips Klein.
- The take from contributor Enceladus Research leans to the cautious side due to the recent rally in Macau names ahead of the revenue report. The positive effect of an earlier New Year was already baked in a bit, notes ER.
- Sector gainers today include Las Vegas Sands (LVS +4.9%), Melco Crown (MPEL +4.4%), MGM Resorts (MGM +4.1%), and Wynn Resorts (WYNN +3.9%). Earlier today in Hong Kong, Wynn Macau (OTCPK:WYNMF, [[WYNMY}]) and MGM China (OTCPK:MCHVF, OTCPK:MCHVY) had a strong day.
Fri, Feb. 26, 12:26 PM
- Casino stocks are churning higher today as the mix of macroeconomic news and earnings reads continues to lean to the favorable side.
- Earlier today, casino industry supplier Scientific Games reported earnings which included a solid increase in gaming machine shipments by the company to U.S. and Canadian customers (+12% pro forma w/Bally's acquisition factored in).
- Gainers include Caesars Entertainment (CZR +11.1%), Boyd Gaming (BYD +7.5%), Isle of Capri Casinos (ISLE +3.2%), MGM Resorts (MGM +3.3%), Wynn Resorts (WYNN +2.9%), and Penn National Gaming (PENN +1.8%).
- The Market Vectors Gaming ETF (NYSEARCA:BJK) is up 1.1%, compared to a flat S&P 500 Index.
- Related: Casino Stocks Are Coming Up Aces (Feb. 23 2016)
- Related: March Madness In Las Vegas: More Proof That Gaming Has Become An Event Driven Industry (Feb. 26 2016)
Fri, Feb. 19, 9:40 AM
- MGM Resorts (MGM -4.3%) revealed during its earnings conference call that it will push back the opening of its new $3B property in Cotai to sometime by the end of the first quarter of 2017. The delayed launched of the casino complex is due to the current market conditions in Macau.
- The company thinks the extra time will help it fine tune the property to the "evolving" market conditions.
- MGM earnings call transcript
Thu, Feb. 18, 8:08 AM
- MGM Resorts (NYSE:MGM) reports revenue at domestic properties increased 2% in Q4.
- Las Vegas Strip casinos churned up a 12% increase in RevPAR to $152 during the quarter. Total revenue was up at the Luxor, New York-New York, Excalibur, Monte Carlo, and Circus Circus casinos.
- Revenue at MGM China was down 31% and EBITDA fell off 29% on weak traffic trends for Macau. VIP table games revenue was down 49% Y/Y.
- Previously: MGM Resorts misses by $0.13, misses on revenue (Feb. 18 2016)
- MGM -2.69% premarket to $19.53.
Fri, Feb. 12, 9:59 AM
- Macau casino stocks are showing strong gains after results of Wynn Resorts (WYNN +10.5%) came in better than expected.
- Popping out of the report was a solid win rate and stabilizing mass market trend in Macau. During the earnings call, Steve Wynn confirmed reports that the Chinese New Year period is off to a solid start.
- Previously: Wynn Resorts revenue read: Macau -27%, Vegas +4% (Feb. 11 2016)
- Wynn Resorts earnings call webcast
- Macau movers include Melco Crown (MPEL +5.2%), Las Vegas Sands (LVS +5.6%), and MGM Resorts (MGM +5%).
Wed, Jan. 20, 10:40 AM
- Casino stocks are getting battered as the cases for revenue recoveries in Macau and Las Vegas start to crumble. Analysts note that the correlation between stock market turmoil and a drop in VIP casino traffic is hard to ignore.
- Major losses are being racked up by Wynn Resorts (WYNN -10.1%), Melco Crown (MPEL -9.7%), MGM Resorts (MGM -9.5%), Las Vegas Sands (LVS -8.7%), Caesars Entertainment (CZR -8.3%), Boyd Gaming (BYD -8.2%), Century Casinos (CNTY -7.6%), Pinnacle Entertainment (PNK -6.8%), and Penn National Gaming (PENN -6.1%).
- Related ETF: BJK.
Mon, Jan. 11, 12:57 PM
- The Macau gaming stocks are higher after Morgan Stanley cited mass revenue stabilization trends in moving off of a cautious view on the sector.
- The investment firm sees a 4% Macau revenue gain for 2016 after a long streak of declining growth.
- Melco Crown (MPEL +2.9%), Las Vegas Sands (LVS +1.2%), and MGM Resorts (MGM +1.8%) are the top gainers in the group.
MGM Resorts International operates as holding company that is primary engaged in the ownership and operation of casino resorts, which includes offering gaming, hotel, convention, dining, entertainment, retail and other resort amenities. The company operates through two reportable segments that... More
Industry: Resorts & Casinos
Country: United States
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