NEW YORK (TheStreet) -- Shares of Las Vegas Sands (LVS - Get Report) were gaining 4.9% to $56.53 Monday following a positive note to investors from Union Gaming Research Macau.
The analyst firm suggested that investors should "get back in" to casino stocks such as Las Vegas Sands that operate casinos in Macau, according to GGR Asia. The analyst firm said that the increased scrutiny of the VIP gambling market by Macau and Chinese authorities will likely encourage interest from overseas investors.
"With little exception, casino operators, junket operators, politicians, investors and industry watchers all agree that the VIP business has been permanently changed - and we would argue that it is for the better," Union Gaming analysts said. Now we are privy..
I said I would be happy if earnings were over 70 cents. No predictions.
Was worried about your health..You've been absent..Next week the curtains will be pulled..I'll be happy if the magic number is over 70 cents..I hope a lot of analysts will be looking for new jobs after numbers..Ready to re-post their sad downgrades if they are..LOL
Nomura Securities analyst Harry C. Curtis downgraded Las Vegas Sands (NYSE: LVS) and Wynn Resorts Ltd (NASDAQ: WYNN) from Buy to Neutral with a price targets of $54 ($70.00) and $149 (from $209), respectively. Meanwhile the firm maintained a Buy rating on MGM (NYSE: MGM) but cut its price target to $24 (from $30). The firm is lowering Macau GGR forecasts, EBITDA estimates, and projected ROIC’s on new Cotai projects significantly.
The firm is reducing Macau GGR Forecast to (19.6%), well below the Street at (8%). "There is a new sheriff in Macau and that sheriff is Beijing, which is tightening and enforcing travel and capital flow regulations that either didn’t exist or were ignored nine months ago. We believe the current level of demand may average ~ 775m MOP/day through 2015. (8%), which we were early in lowering to, implies daily GGR of 894m MOP and now looks hopelessly optimistic. Our estimate does not assume new policies restricting either the use of Unionpay cards, the business practices of the jewelry shops in Macau, or a full ban on smoking in the casinos. Investors may view our new estimate as too conservative, but the chance of current trends improving in the face of even more regulation/enforcement seems remote."
Curtis added, "With Beijing’s insistence on diversifying Macau’s revenues from gaming, we assume 40%-50% lower table allocations for the new resorts (200-300). EBITDA/table, however, should be at or above current levels since supply growth is likely to be well below demand growth in 2016-2017. We ascribe little incremental EBITDA for non-casino amenities. Three months ago, we lowered our ROIC forecast from 30%-35% to ~25%. With fewer tables and lower-than-expected GGR going into the openings, a 15% ROIC is more likely."
If daily GGR averages 775m MOP, then 2015 EBITDA estimates in Macau decline by 15%-20% for WYNN, LVS and MGM. Parent company estimates decline by 15%, 11% and 5%, respectively, which is now the differential between their estimates and consensus.
For an analyst ratings summary and ratings history on Las Vegas Sands click here. For more ratings news on Las Vegas Sands click here.
Shares of Las Vegas Sands closed at $53.20 yesterday.
LAS VEGAS, NV -- (Marketwired) -- 01/21/15 -- Las Vegas Sands (NYSE: LVS) announced today that it will release its financial results for the quarter ended December 31, 2014 on Wednesday, January 28, 2015.
The company will release its financial results shortly after the market close of the New York Stock Exchange and will host a conference call to discuss its results at approximately 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).
A webcast of the conference call may be accessed at the Investor Relations section of the company's website
Sands China (1928.HK), a unit of Las Vegas Sands (LVS), will kick off the fourth-quarter earnings season next Tuesday. What should we expect?
Wall Street is feeling blue.
First, high-frequency weekly gross gaming revenue is not pointing up yet. For the week between January 12 and 18, average daily table revenue stayed at 689 million Hong Kong dollars, similar to the previous week’s HK$693 million. Analysts now see a high-teen’s decline for the month of January.
Second and most importantly, Macau seems unable to shake off dodgy headlines from prostitution ring bust to major junket closing shop. Macquarie Research‘s analysts Jamie Zhou and Marcus Qi lamented:
Three events in particular make us nervous about Macau insiders’ outlook on the gaming industry: 1) MPEL withdrawing its HK listing partially, due to a lack of capital raising needs; 2) one of the top junkets, the David Group, decided to shut down 3 of its 7 VIP rooms; and, 3) Sands China’s CEO Ed Tracy made the surprising decision to retire by March 2015.
Third, gaming in the more profitable mass segment has slowed down in the fourth quarter, which could drag margins in the fourth quarter. Credit Suisse‘s Kenneth Fong and Isis Wong now see a 22% decline in profit:
Gaming revenue dropp
Yahoo wont let me post the rest..http://www.forbes.com/sites/muhammadcohen/2015/01/19/mainland-goliath-slays-david-group-junket-but-beijing-moves-overblown/
China's economy grew at its slowest pace in more than two decades in 2014, a performance that underscores the depth of challenges facing the world's second-largest economy.
Gross domestic product was 7.4% in 2014, compared to the same period the previous year, according to the National Bureau of Statistics. That's below the government's 7.5% goal, and is the slowest growth rate since 1990. I'm looking for some Chinese stimulus.
Declining VIP revenue has felled Macau’s David Group, a top 10 junket operator, as more stones hit the world’s gaming capital. Earlier in the week, Macau police busted a major prostitution ring, arresting ailing gaming tycoon Stanley Ho’s nephew Alan Ho, a senior executive at SJM Holdings’ former flagship Hotel Lisboa. Hong Kong’s South China Morning Post reported Sunday about an upcoming meeting this week between officials of mainland China’s Ministry of Public Security and Macau Monetary Authority officials to put in a transaction monitoring system in place.
Some observers see these events as part of a story of China cracking down on Macau casinos: How the Communist Party knocked down Macau’s house of cards in just six weeks, the Sunday Post blared. But these developments don’t add up to Beijing targeting Macau.
There’s no denying that President Xi Jinping’s anti-corruption campaign, which shows no signs of abating and is popular at home, has put a damper on Macau’s gaming revenue, but that’s a side effect of the policy, not its goal. There’s also little doubt that Beijing is increasingly unhappy with Macau Chief Executive Fernando Chui, who just began his second five year term, for presiding over a government that has approved six new casino resorts but can’t manage build a hospital or sufficient public housing or a world class attraction that would help diversify the economy away from gaming despite massive fiscal reserves. But targeting Macau casinos would make the city collapse rather than straighten up, and Beijing surely doesn’t want a restive, needy Macau on its hands.
The freeforum has a wonderful group of contributors..It is just too formal for me..I remember how I was helped on this board when I first started trading 5 years ago..I'm here for the newbies..They come here first..
I'm not defending Tony..I'm pointing out that your purpose here is to direct people to the other board than contributing to this board.. You just did it again..Your spin of the facts reminds me of FOX News..LOL