Its no secret that CNY is mass market heavy. So this is just blatant manipulation. Oh and guess what our strength is? Thats right Mass market. Oh, and what is more profitable.....you got it mass market. They are just trying to steal our shares that is all. Hold tight. Before you know it we will be back in the mid 50's. Good luck.
Sentiment: Strong Buy
yes that was the initial headline but was cleared up. These assets are some of the most valuable if not the most valuable retail properties in the world.
with the assets that we have around the world we are so undervalued its not even funny. be patient it will pay off. SA will unlock shareholder valued as he promised
total visitors to Macau growing 22% Y/Y over the last four day period.
February 13, 2013, 10:53 A.M. ET.
By Ben Levisohn
UBS analyst Robin Farley recently met with Las Vegas Sands (LVS) management–and came away liking what she saw. Her key takeaways:
Sands remains positioned to take market share in Macau from competitors like Melco Crown Entertainment (MPEL), MGM Resorts International (MGM) and Wynn Resorts (WYNN) with both high rollers and mass-market gamblers. The mass market, however, will be key. She writes:
As VIP gets more competitive in the market, LVS is the only operator to have the “real estate” in terms of tables and rooms to comp to effectively be able to go after mass and premium mass as well as VIP between now and ‘15….Since not every operator has capacity to pursue premium mass, we expect competition in that segment to remain more rational than VIP. We believe the ramp-up of hotel rooms/table ratio will drive LVS outperformance.
But it’s not all about Macau. Also driving the stock will be the potential for the company to raise its dividend, as highlighted by Lazard’s analysts in January. Farley believes Sands can grow its dividend in “consistent increments” of about 20%, after 2013′s 40% dividend hike–with most of the increase coming from Sands China’s dividend. “We believe the [company] has room to pay the $1.2B in annual [dividends] we [estimate] for ’13 and still have powder dry to commit equity to a major new project or two should,” she says.
Farley maintained her buy rating on the stock and a $59 price target. LVS has gained 0.9% to $54.18 today.
The Macau Government Tourism Office reports the Chinese New Year is off to a strong start with total visitors to Macau growing 22% Y/Y over the last four day period. A mini-boom in traffic could help drive revenue higher for the local arms of casino companies Las Vegas Sands (LVS +0.7%), MGM Resorts (MGM -0.3%), Wynn Resorts (WYNN +0.3%), and Melco Crown (MPEL +1.8%). [Global & FX, Consumer]