Jul. 16, 2014, 4:05 PM
Jul. 15, 2014, 5:35 PM
Jul. 15, 2014, 10:04 AM
- Fitch Ratings cuts its forecast for 2014 Macau gaming revenue growth to 10% from 12%.
- The ratings agency thinks the VIP segment could see a 5% dip for the year compared to the sizzling 25%-30% growth it see for the mass market segment.
- The dynamics in Macau have shifted considerably as VIP spending is clipped by economic policy, while the mass market segment continues to bring in new Mainland visitors. The advent of UnionPay machines is also a positive for mass market.
- Macau related stocks: MPEL, MGM, WYNN, LVS, GXYEF, SJMHF.
Jul. 14, 2014, 9:39 AM
Jul. 9, 2014, 9:38 AM
- JPMorgan takes the long view on Macau to see buying opportunities in the gaming sector.
- The investment firm thinks the short-term swings based on monthly traffic and revenue tallies are less important than the underlying supply and demand dynamics.
- Other analysts have noted that despite the Macau growth dip in June and early July, the two-year comparisons are still impressive.
- JP likes the usual Macau suspects: Melco Crown (MPEL -0.9%), Las Vegas Sands (LVS -0.9%), Wynn Resorts (WYNN -1.1%), MGM Resorts (MGM -0.8%).
Jul. 8, 2014, 9:55 AM
- Casino stocks open trading lower after Deutsche Bank lowers estimates on Las Vegas Sands and comments from MGM China's Pansy Ho on travel trends in Macau create a ripple of worry.
- Bank of America isn't helping sentiment with a new note out to clients in which it forecasts July revenue in Macau will fall 11% Y/Y.
- Decliners: Las Vegas Sands (LVS) -2.6%, Wynn Resorts (WYNN) -2.3%, MGM Resorts (MGM) -2.2%, Galaxy Entertainment (GXYEF) -1.5%.
Jun. 27, 2014, 10:05 AM
- Started at Buy are Wynn Resorts (WYNN -0.2%), Multimedia Games (MGAM +1.5%), MGM Resorts (MGM), and Melco Crown (MPEL +0.7%).
- Initiated at Neutral are Bally Technologies (BYI -0.3%), International Game Technology (IGT -0.1%), Las Vegas Sands (LVS -0.5%), Pinnacle Entertainment (PNK +0.6%), and Scientific Games (SGMS -1.4%).
- Underperform: Boyd Gaming (BYD -1.2%).
- In other news, Las Vegas Strip win revenue of $592.9M in May rose 17.3% Y/Y according to the Nevada Gaming Control Board. The state's nonrestricted gaming licensees reported total gaming win of $970M in May, up 8.1% from a year ago.
Jun. 26, 2014, 11:52 AM
- Secretary for the Economy and Finance Francis Tam says the government has not asked jewelry or watch retailers accepting UnionPay cards to cease operations or move out of casinos.
- Sterne Agee analyst David Bain's top pick remains Melco Crown (MPEL +4.7%) thanks to its low valuation and catalysts like the opening of the only major casino in Asia this year (City of Dreams in Manila), likely Japanese gaming expansion approval, the opening of Macau's next new casino-resort next year, the best-located casino in Cotai, and longer-term potential for increased dividends and buybacks.
- Bain also notes a positive shift in sentiment for Macau names of late.
- Also on the move: Wynn Resorts (WYNN +2.8%), Las Vegas Sands (LVS +2.6%), MGM Resorts (MGM +2.8%).
Jun. 26, 2014, 9:50 AM
- Caesars Entertainment's (CZR +0.4%) Gary Loveman says the casino company likely will strike a debt restructuring deal with its bondholders within a year, and should also be able to finance an expansion into the Japanese market that would require at least a $5B investment.
- CZR's debt carries a speculative grade rating, but the CEO says CZR's finances will not put it at a disadvantage as it seeks a license in Japan, where a bill to legalize casinos could be put to a vote in parliament this year.
- CZR, Las Vegas Sands (LVS) and MGM Resorts (MGM) are among the global gambling operators pledging to spend billions of dollars to build resorts in what’s projected to become Asia’s largest casino market after Macau.
Jun. 24, 2014, 11:45 AM
- Casino stocks gain steam after Japanese Prime Minister Shinzo Abe says his party aims to pass a law in the next session of parliament to legalize casinos in the nation.
- Japan is forecast to be Asia's biggest casino market after Macau.
- Advancers: Melco Crown (MPEL) +2.5%, Caesars Entertainment (CZR) +1.9%, MGM Resorts (MGM) +1.9%, Wynn Resorts (WYNN) +1.4%, Las Vegas Sands (LVS) +1.2%.
Jun. 19, 2014, 3:16 PM| 6 Comments
Jun. 16, 2014, 12:50 PM
Jun. 12, 2014, 7:51 AM
- In the next several weeks, the Supreme Court is expected to rule on a case involving a shareholders' class action lawsuit against Haliburton (HAL). If it rules in favor of the company, it will set a higher bar for plaintiffs to achieve class certification. Currently, a judge holds a certification hearing to decide whether class status is appropriate. One criterion is that the people must have common issues. If HAL prevails, then the defendants will be able to file a brief with the court demanding that the shareholders have to again seek court approval for class status under a new, tougher standard. If they fail the gain the approval, the case ends.
- HAL is trying to overturn a 1988 decision, Basic v. Levinson, which is based on "fraud on the market theory," which postulates that a defendant's material misrepresentation that affects the price of publicly traded securities is assumed to have been relied upon by a buyer who suffered a loss. In HAL's case, shareholders alleged that it understated its asbestos liabilities while overstating revenues and the benefits of its merger with Dresser Industries.
- Other firms facing class action suits that would benefit from a favorable ruling are Pfizer (PFE), Merck (MRK), HSBC Holdings Plc (HSBC), Regions Financial (RF) and Las Vegas Sands (LVS).
Jun. 10, 2014, 10:44 AM
Jun. 10, 2014, 7:49 AM
- Wells Fargo expects casinos in Macau to have a weak month due to the distraction of the World Cup.
- The investment firm sees gaming revenue increasing 1% to 5% in June, a far cry from the double-digit growth rate that has been the norm in the region.
- Most forecasts for annual revenue growth in Macau now range between 11% and 15% after sitting closer to 20% at the beginning of the year.
- Macau related stocks: MPEL, MGM, WYNN, LVS, GXYEF, SJMHF
Jun. 9, 2014, 8:47 AM
- Wells Fargo lowers its forecast for revenue growth in Macau to 11% from a prior forecast of 13%,
- The investment firm thinks the VIP segment in Macau has seen some growth deceleration which will provide a bit of an offset to the continued strength in the mass market segment.
- Macau related stocks: MPEL, MGM, WYNN, LVS, GXYEF, SJMHF
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Las Vegas Sands Corp is a developer of destination properties that feature premium accommodations, world-class gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities.
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