The Chairman of the Galaxy Macau will be announcing the hotel's official opening date next week. The opening date will be consistent with previous statements that the hotel will open in "early 2011" which means by April 1st. With the hotel opening up in a couple of weeks it won't be long before AERL announces they will have a VIP room in the Galaxy.
"The opening date will be consistent with previous statements that the hotel will open in "early 2011" which means by April 1st."
Based on this I expect the FY 2011 share count to be about 30M as it is my understanding that the 4.2M shares being issued to the original owners are already included in the 22.5M current count.
That would still put 2011 EPS over $2 based on my net income projections (which does not include the effect of any new tables from the potential participation in the new Galaxy casino).
$36,800,000 to $37,799,999 = 4,210,000
$37,800,000 to $38,799,999 = 6,300,000
$38,800,000 to $39,799,999 = 8,069,000
$39,800,000 to $40,799,999 = 9,586,000
$40,800,000 to $41,799,999 = 10,900,000
$41,800,000 and above 12,050,000
Where are you getting that from? Please provide a link.
Well we should find out tomorrow or Monday, as I would expect the Chairman & CFO to present a full year on Monday evening.
ROTH Capital Partners 23rd Annual OC Growth Stock Conference
Event: Corporate Presentation at 4:30 PM Pacific Time, Q&A
Date: March 14, 2011
Location: Ritz Carlton in Laguna Niguel, California
Participants: Lam Man Pou, Chairman
Raymond Li, CFO
Guidance is for 36-39m net income. Q4 net income would have to be 13.1m (excluding income from the October acquisition) for mgmt to get more than 8m shares which is impossible. The most likely outcome is the 6.3m share level for net income.
Galaxy Macau to announce opening date on Thursday
Posted: 3/8/2011 5:46:01 PM
On Thursday (March 10), Galaxy Entertainment Group senior representatives will reveal the grand opening date of the Galaxy Macau resort in Cotai, the company said.
Lui Che Woo, the group’s founder and chairman, and Francis Lui Yiu Tung, Galaxy Entertainment Group’s vice-chairman will make the announcement.
The Galaxy is opening in May.
RCT from May on should conservatively be 1.85B a month for the rest of 2011 which is 60% above guidance.
Net income should conservatively be $80 to 85m for 2011.Earnings should be around $3.00.
With one more VIP room expected by the end of 2011 and 20% organic growth in 2012 net income for 2012 could be 160m.
If, after the Galaxy VIP room opens, guidance is raised and strong Q4 earnings come out,AERL continues to be undervalued(or becomes even more undervalued) I see the company being taken private and then relisting on the Hong Kong exchange where the stock will be given a P/E of 20. Insider shares will be worth 4x more if they list on the HK exchange.
Insiders are not foolish. They own 14m shares and they haven't sold a share since last June when their share registration went into effect. They have an alternative and a few billionaires in their VIP rooms.