Shares of Melco Crown Entertainment Ltd. (NASDAQ:MPEL) are hopping today on news of an upgrade from Bank of America (NYSE:BAC) from "Neutral" to "Buy."
Melco Crown Entertainment is in the development, ownership, and operation of casino gaming and entertainment resort facilities, for the most part in the Macau special administrative region of China.
Affluent and middle class Chinese gamers continue to spend strongly in Macau.
Melco Crown Entertainment was upgraded by Bank of America on what they see as “sustainable improvement” in the performance of the casino in the midst of increased spending in the region.
Melco was trading at $9.26, gaining $0.57, or 6.56 percent, as of 2:13 PM EDT.
Showing posts with label Macau. Show all posts
Showing posts with label Macau. Show all posts
Friday, April 15, 2011
Thursday, April 7, 2011
JPMorgan (JPM) Raises (WYNN) (LVS) (MPEL) Estimates
JPMorgan (NYSE:JPM) raised its estimates on Wynn Resorts (WYNN), Las Vegas Sands (LVS) and Melco Crown Entertainment (MPEL) today.
According to JPMorgan analyst Joseph Greff, Wynn and Las Vegas Sands should benefit from expected growth in Macau and the Las Vegas Strip. Gross gaming revenue in Macau has risen by 47.7 percent over last year in February.
For Melco Crown Entertainment, Greff noted that it is trading at a lower valuation than its peers.
Greff said, “We think that mass, slot, and VIP volumes for Marina Bay Sands’ (MBS) 1Q11 showed nice sequential improvements versus 4Q10 levels, something that should improve current investor sentiment for LVS, given that was an issue of concern for investors in the 4Q10 when VIP volumes were down sequentially. We believe that February was an all-time record for volumes and EBITDA.”
“We think Macau GGR growth will remain robust over the next two months given five weekends in April and the seasonally strong Golden Week holiday in May. Additionally, in the near term, we believe the potential easing of foreign labor restrictions in Macau over the next two months (in conjunction with Galaxy Cotai opening on May 15), could serve as a positive catalyst for all Macau operators, and more specifically LVS as it could speed up construction on Sites 5 & 6.”
He boosted his December 2011 price target on WYNN from $140 to $150, and on LVS from $58 to $56.
Wynn Resorts was trading at $135.94, gaining $1.64, or 1.22 percent, as of 12:55 PM EDT. Las Vegas Sands was trading at $45.22, up $0.36, or 0.80 percent. Melco was trading at $8.50, rising $0.26, or 3.16 percent.
According to JPMorgan analyst Joseph Greff, Wynn and Las Vegas Sands should benefit from expected growth in Macau and the Las Vegas Strip. Gross gaming revenue in Macau has risen by 47.7 percent over last year in February.
For Melco Crown Entertainment, Greff noted that it is trading at a lower valuation than its peers.
Greff said, “We think that mass, slot, and VIP volumes for Marina Bay Sands’ (MBS) 1Q11 showed nice sequential improvements versus 4Q10 levels, something that should improve current investor sentiment for LVS, given that was an issue of concern for investors in the 4Q10 when VIP volumes were down sequentially. We believe that February was an all-time record for volumes and EBITDA.”
“We think Macau GGR growth will remain robust over the next two months given five weekends in April and the seasonally strong Golden Week holiday in May. Additionally, in the near term, we believe the potential easing of foreign labor restrictions in Macau over the next two months (in conjunction with Galaxy Cotai opening on May 15), could serve as a positive catalyst for all Macau operators, and more specifically LVS as it could speed up construction on Sites 5 & 6.”
He boosted his December 2011 price target on WYNN from $140 to $150, and on LVS from $58 to $56.
Wynn Resorts was trading at $135.94, gaining $1.64, or 1.22 percent, as of 12:55 PM EDT. Las Vegas Sands was trading at $45.22, up $0.36, or 0.80 percent. Melco was trading at $8.50, rising $0.26, or 3.16 percent.
Friday, April 1, 2011
Sands (LVS) (Wynn) (MGM) Soar on Macau Gambling Revenue
Shares of Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:Wynn) and MGM Resorts (NYSE:LVS) are hopping today after the report by the government of Macau that gambling revenue soared past $2.5 billion in the month of March. That's up 48 percent over last year in the same quarter.
Macau continues to surpass Vegas in gambling revenue, as in 2010 it had about four times the revenue as its major competitor, which has been fading for some time globally.
But those Vegas casinos with operations in Macau are doing well, as evidenced by the soaring price of their shares on the news.
MGM was trading at $13.50, gaining $0.35, or 2.66 percent, as of 12:52 PM EDT. Wynn Resorts was trading at $135.31, up $8.15, or 6.41 percent. Las Vegas Sands was at $43.79, up $1.57, or 3.72 percent.
Macau continues to surpass Vegas in gambling revenue, as in 2010 it had about four times the revenue as its major competitor, which has been fading for some time globally.
But those Vegas casinos with operations in Macau are doing well, as evidenced by the soaring price of their shares on the news.
MGM was trading at $13.50, gaining $0.35, or 2.66 percent, as of 12:52 PM EDT. Wynn Resorts was trading at $135.31, up $8.15, or 6.41 percent. Las Vegas Sands was at $43.79, up $1.57, or 3.72 percent.
Friday, February 11, 2011
Las Vegas Sands (NYSE:LVS) Catches Tailwinds from Wynn Resorts (Nasdaq:WYNN)
Las Vegas Sands (NYSE:LVS) moved into positive territory today, catching tailwinds from Wynn Resorts' (Nasdaq:WYNN) performance, as well as the positive guidance on the state of gambling in Las Vegas in 2011.
Also significant was the last quarterly performance of Wynn Macua, where revenues soared almost 80 percent over 2009's numbers.
Concerning the Macau credit situation, CEO Steve Wynn said "the credit balance is outstanding with our associates and the junket business is very large.
"We do not, I stress that, we do not and never have used credit as a marketing technique."
Combined with Sands China numbers, that part of the world looks good for both companies, and the gaming and tourism sector as a hole. Add to that a rebounding Las Vegas, and it could be a good year for them.
Las Vegas Sands was trading at $47.17, up $0.92, or 1.99 percent, as of 1:37 PM EST. Wynn was trading at $127.75, up $7.60, or 6.33 percent.
Also significant was the last quarterly performance of Wynn Macua, where revenues soared almost 80 percent over 2009's numbers.
Concerning the Macau credit situation, CEO Steve Wynn said "the credit balance is outstanding with our associates and the junket business is very large.
"We do not, I stress that, we do not and never have used credit as a marketing technique."
Combined with Sands China numbers, that part of the world looks good for both companies, and the gaming and tourism sector as a hole. Add to that a rebounding Las Vegas, and it could be a good year for them.
Las Vegas Sands was trading at $47.17, up $0.92, or 1.99 percent, as of 1:37 PM EST. Wynn was trading at $127.75, up $7.60, or 6.33 percent.
Tuesday, February 8, 2011
Wynn Resorts (NASDAQ:WYNN), MGM (NYSE:MGM), Boyd (NYSE:BYD) Surge on Upgrades
The gaming sector was hot today, as Wynn Resorts (NASDAQ:WYNN), MGM Resorts (NYSE:MGM) and Boyd Gaming Co. (NYSE:BYD) were all upgraded by analysts, and share prices rocketed up.
Bank of America upgraded Boyd and MGM Resorts, with Bank of America saying "Las Vegas is recovering and we believe Boyd is a derivative way to play the recovery with nearly 50% of total [earnings before interest, taxes, depreciation and amortization] coming from the Las Vegas Locals and Downtown markets."
MGM Resorts International was also upgraded by Bank of America.
Wynn Resorts got a boost from Wells Fargo (NYSE:WFC), noting strength in the Macau market.
Bank of America upgraded Boyd Gaming from "Underperform" to "Buy." Boyd was trading at $12.23, gaining $1.22, or 11.08 percent, as of 2:37 PM EST. MGM Resorts was upgraded from "Neutral" to "Buy." MGM was trading at $15.74, up $0.81, or 5.39 percent.
Wynn Resorts was trading at $119.63, up $1.59, or 1.37 percent. Wells recommends buying protection via puts, as the share price is approaching 52-week highs.
Bank of America upgraded Boyd and MGM Resorts, with Bank of America saying "Las Vegas is recovering and we believe Boyd is a derivative way to play the recovery with nearly 50% of total [earnings before interest, taxes, depreciation and amortization] coming from the Las Vegas Locals and Downtown markets."
MGM Resorts International was also upgraded by Bank of America.
Wynn Resorts got a boost from Wells Fargo (NYSE:WFC), noting strength in the Macau market.
Bank of America upgraded Boyd Gaming from "Underperform" to "Buy." Boyd was trading at $12.23, gaining $1.22, or 11.08 percent, as of 2:37 PM EST. MGM Resorts was upgraded from "Neutral" to "Buy." MGM was trading at $15.74, up $0.81, or 5.39 percent.
Wynn Resorts was trading at $119.63, up $1.59, or 1.37 percent. Wells recommends buying protection via puts, as the share price is approaching 52-week highs.
Tuesday, February 1, 2011
Las Vegas Sands (NYSE:LVS), Wynn (Nasdaq:WYNN) Strengthened on Macau Revenue Surge
Casino revenue in Macau soared 33 percent in January, helping push casino giants Las Vegas Sands (NYSE:LVS) and Wynn Resorts up(Nasdaq:WYNN).
The government of Macau announced today that casino revenue rose 33 percent to $2.3 billion. While slightly lower than December's numbers, the 33 percent represented number over last January.
The growing numbers were representative of the growing tourist business in Macau from mainland China.
For all of 2010, casino revenue in Macau jumped by 58 percent over 2009.
Noting the Chinese New Year is a typical slow season for tourism, Credit Suisse analyst Gabriel Chan said, "...33 percent growth is quite decent indeed so that is why I am still confident with my full-year 29 percent growth outlook."
Las Vegas Sands was trading at $48.60, up $2.11, or 4.54 percent, as of 11:43 AM EST. Wynn Resorts was trading at $117.56, up $1.23, or 1.05 percent.
The government of Macau announced today that casino revenue rose 33 percent to $2.3 billion. While slightly lower than December's numbers, the 33 percent represented number over last January.
The growing numbers were representative of the growing tourist business in Macau from mainland China.
For all of 2010, casino revenue in Macau jumped by 58 percent over 2009.
Noting the Chinese New Year is a typical slow season for tourism, Credit Suisse analyst Gabriel Chan said, "...33 percent growth is quite decent indeed so that is why I am still confident with my full-year 29 percent growth outlook."
Las Vegas Sands was trading at $48.60, up $2.11, or 4.54 percent, as of 11:43 AM EST. Wynn Resorts was trading at $117.56, up $1.23, or 1.05 percent.
Thursday, January 20, 2011
Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:WYNN) Getting 30% Revenue Boost from Macau Says CSLA
According to CSLA, their prior projection of a 20 percent increase in revenue from Macau for Las Vegas Sands Corp. (NYSE:LVS) and Wynn Resorts Ltd. (NASDAQ:WYNN) was too low, and they raised their revenue estimate to $30 billion, a 30 percent increase in 2011.
Much of that is predicated on a huge number of Chinese from the mainland visiting the resorts.
CSLA said, “Improvements in the macro environment as well as China’s tourism push should result in higher average spending and hence revenues.”
A total of 22.7 million visitors came to Macau in the first 11 months of last year, with those coming from mainland China increasing by 20.5 percent, added CSLA.
Las Vegas Sands closed Wednesday at $46.43, dropping $0.75, or 1.59 percent. Wynn Resorts closed at $118.18, falling $0.68, or 0.57 percent.
Much of that is predicated on a huge number of Chinese from the mainland visiting the resorts.
CSLA said, “Improvements in the macro environment as well as China’s tourism push should result in higher average spending and hence revenues.”
A total of 22.7 million visitors came to Macau in the first 11 months of last year, with those coming from mainland China increasing by 20.5 percent, added CSLA.
Las Vegas Sands closed Wednesday at $46.43, dropping $0.75, or 1.59 percent. Wynn Resorts closed at $118.18, falling $0.68, or 0.57 percent.
Thursday, December 9, 2010
Las Vegas Sands (NYSE:LVS) Macau Growth Underestimated Says Argus
Although of the attention on Las Vegas Sands (NYSE:LVS) has been on the rejection of the Macau government to develop two parcels, Argus sees many missing the growth Sands should enjoy from current properties in the country.
Argus analyst John Staszak wrote in a note, “In Macau, the gaming market is already larger than in Las Vegas, and we expect an expanding Chinese middle class and simplified travel requirements to spur growth.”
“Despite a modest slowdown in the Chinese economy, the strong results confirm our belief that our fourth-quarter 2010 forecast for 6% growth in Macau may be conservative,” Staszak added.
Also cited was the report from the Gaming Inspection and Coordination Board in Macau that gaming revenue had increased 42 percent in the early part of December, to $2.13 billion, second historically from the $2.30 billion gain in October of this year.
Gaming growth in Singapore and Las Vegas was also noted at helping shore up the results of Las Vegas Sands.
Sands closed Wednesday at $46.04, down $1.55, or 3.26 percent. Argus has a price target on them of $58.
Argus analyst John Staszak wrote in a note, “In Macau, the gaming market is already larger than in Las Vegas, and we expect an expanding Chinese middle class and simplified travel requirements to spur growth.”
“Despite a modest slowdown in the Chinese economy, the strong results confirm our belief that our fourth-quarter 2010 forecast for 6% growth in Macau may be conservative,” Staszak added.
Also cited was the report from the Gaming Inspection and Coordination Board in Macau that gaming revenue had increased 42 percent in the early part of December, to $2.13 billion, second historically from the $2.30 billion gain in October of this year.
Gaming growth in Singapore and Las Vegas was also noted at helping shore up the results of Las Vegas Sands.
Sands closed Wednesday at $46.04, down $1.55, or 3.26 percent. Argus has a price target on them of $58.
Monday, December 6, 2010
Las Vegas Sands (NYSE:LVS) Shouldn't Suffer from Macau Decision
Most commentators on the rejection of the application of Las Vegas Sands (NYSE:LVS) for what is identified as Parcels 7 and 8, as most weren't considering them in their valuations and outlook for the company, so there were no real surprises there.
Barclays (NYSE:BCS) noted, "The Macau Government's rejection of LVS land concession application for Parcels 7 and 8 is disappointing, but not a total surprise. More importantly, Parcels 7 and 8 were not in our forecasts or valuation for the company. We present our first thoughts on this news here; however, we have not yet spoken with the company. We will provide an update if our thoughts change following a conversation with management...Based on the letter received by LVS from the Macau government, the company has 15 days to apply to the Chief Executive of Macao for a review of decision and 30 days to appeal the decision to the Macau Courts.
"As of September 30, Las Vegas Sands has capitalized $102.4 million in construction costs on Parcels 7 and 8. Parcels 7 and 8 was originally designed to have 6,150 hotel rooms with Fairmont, Raffles, Hilton and Conrad branded hotel towers as well as a casino, retail, and serviced apartments. Construction on the parcels was halted during the global financial crisis in November 2008. LVS has also not received a land concession for Parcel 3, on which the company has capitalized $34.5 million in costs. LVS received a land concession for Parcels 5 and 6 in November 2009...SJM Holdings has been interested in taking over Parcels 7 and 8 from Las Vegas Sands. In an interview cited in a September 7 Wall Street Journal article 'SJM Covets Sands's Land,' SJM Chief Executive Ambrose So indicated SJM sent a letter to the Macau government expressing interest in the sites."
Las Vegas Sands closed Friday at $49.24, up by $0.07, or 0.14 percent. Barclays has a price target on them of $52.
Barclays (NYSE:BCS) noted, "The Macau Government's rejection of LVS land concession application for Parcels 7 and 8 is disappointing, but not a total surprise. More importantly, Parcels 7 and 8 were not in our forecasts or valuation for the company. We present our first thoughts on this news here; however, we have not yet spoken with the company. We will provide an update if our thoughts change following a conversation with management...Based on the letter received by LVS from the Macau government, the company has 15 days to apply to the Chief Executive of Macao for a review of decision and 30 days to appeal the decision to the Macau Courts.
"As of September 30, Las Vegas Sands has capitalized $102.4 million in construction costs on Parcels 7 and 8. Parcels 7 and 8 was originally designed to have 6,150 hotel rooms with Fairmont, Raffles, Hilton and Conrad branded hotel towers as well as a casino, retail, and serviced apartments. Construction on the parcels was halted during the global financial crisis in November 2008. LVS has also not received a land concession for Parcel 3, on which the company has capitalized $34.5 million in costs. LVS received a land concession for Parcels 5 and 6 in November 2009...SJM Holdings has been interested in taking over Parcels 7 and 8 from Las Vegas Sands. In an interview cited in a September 7 Wall Street Journal article 'SJM Covets Sands's Land,' SJM Chief Executive Ambrose So indicated SJM sent a letter to the Macau government expressing interest in the sites."
Las Vegas Sands closed Friday at $49.24, up by $0.07, or 0.14 percent. Barclays has a price target on them of $52.
Friday, December 3, 2010
Las Vegas Sands (NYSE:LVS) Crushed after Macau Rejection, Wynn (Nasdaq:WYNN) Wins
Investors punished Las Vegas Sands Corp. (NYSE:LVS) later in the trading day Thursday on news their request to develop land in Macau was rejected.
UBS Global Equity Research analyst Robin Farley commented, “Our assumption is the parcel will not go to LVS…While no reasoning was given, it is possible the Macau government would like to see all 6 concessionaires well represented on Cotai in a limited supply environment.”
Stifel Nicolaus analyst Steven Wieczynski said the "sell-off is a bit extreme as we don’t believe most investors expected LVS to actually go through and develop these two parcels."
Evidently enough did to push the share price of the stock hard.
Wieczynski added, “With the Macau government getting more vocal/concerned about additional supply, we wouldn’t be surprised if the government sits on the land for the time being.”
The company has 15 days to apply for a review from the government, and an additional 30 days to make an appeal via Macau courts.
Most think this is good news for competitor Wynn Resorts (Nasdaq:WYNN) who should benefit from the decision, assuming it holds.
Las Vegas Sands closed Thursday at $49.17, plunging $2.17, or 4.24 percent.
Stifel has a "Hold" rating on the Sands and UBS maintains a "Neutral" rating.
UBS Global Equity Research analyst Robin Farley commented, “Our assumption is the parcel will not go to LVS…While no reasoning was given, it is possible the Macau government would like to see all 6 concessionaires well represented on Cotai in a limited supply environment.”
Stifel Nicolaus analyst Steven Wieczynski said the "sell-off is a bit extreme as we don’t believe most investors expected LVS to actually go through and develop these two parcels."
Evidently enough did to push the share price of the stock hard.
Wieczynski added, “With the Macau government getting more vocal/concerned about additional supply, we wouldn’t be surprised if the government sits on the land for the time being.”
The company has 15 days to apply for a review from the government, and an additional 30 days to make an appeal via Macau courts.
Most think this is good news for competitor Wynn Resorts (Nasdaq:WYNN) who should benefit from the decision, assuming it holds.
Las Vegas Sands closed Thursday at $49.17, plunging $2.17, or 4.24 percent.
Stifel has a "Hold" rating on the Sands and UBS maintains a "Neutral" rating.
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