Given where we have been on the coffee futures and the sharp pullback in growth stories back in late March through May, it is good to see this claw back to $80 already... now Howard gets to report on their progress with Teavana, Boulanger, sandwiches, alcohol testing, market leading single serve cups. and all of the ramping of last year's new stores along with the strong new store openings done ytd.
Although we said $90 would be a victory in this environment, we still think they can get to $100 no later than Jan 2015 when they report the Holiday Q (4Q14).
The chart looks great... pending seeing a volume surge on strong results coming right up now. We just came back onto DNKN as well... but pass on KKD until they can field execs who can run the world's best donut treat shops. LOL
Re "Anything else?" We could use a Woody Allen horse manure sock factory for the media... add Zacks to the Barrons' and IBD "hall of stupidity" crowd.
doc, the conversion of the most desirable stay and play patrons from VIP tours to direct credit relationship "Premium Mass" players is poorly understood by call it almost everyone -- but certainly most analysts and sellsiders from a significance standpoint. Premium mass and VIP trendlines at MPEL are more than expressed by MPEL's results -- this conversion dynamic is the PLAN and why MPEL is mashing competitors on a pound for pound basis. It is also a serious piece of why MPEL remains in fabulous standing with the political leadership in Macau... catering to these highly valuable visitors is valuable to MPEL, but it is also that to Macau's politicians, shop owners, restauranteurs and other cultural development aspects for the island and surrounding buildouts.
We don't think credit availability is an issue for most quality tours or players, but losing the cream players to direct Premium Mass is not going to be good for tour operators dso/collection stats. LOL
"Our development pipeline continues to progress, with Studio City on-budget and on-track to open in mid-2015, while the timing of our Philippines Project remains unchanged and is expected to open around the middle of next year. Both of these exciting development opportunities are key components of our strategy to maximize return on invested capital and drive long term shareholder value."
Reread that last sentence for emphasis -- do you think they are going to Manila to dilute their ROIC? We sure do not as discussed at length here by us a few times since 2012.
"Macau continues to deliver robust growth across all gaming and non-gaming segments in 2013, highlighting its unique position to cater to the rapidly evolving Asian consumer and expanding middle class. Similarly, our Manila project is well positioned to address this segment in the Philippines and the broader region providing another destination to a wider array of consumers seeking a broader leisure and entertainment proposition. Both of these markets are expected to benefit meaningfully from wide-reaching development plans and significant infrastructure improvements, helping to improve access and enhance customer experience."
Here is more reference to doing more than just gaming in Macau and Manila -- and identifying and capitalizing on the emerging trends in mass and PREMIUM MASS that MPEL is leading the pack on. Ring any bells about what Pansy was calling her visionary thing in the article this week? LOL More like she is trying her level best to think of what brother Lawrence would say and ascribe that "vision thing" to herself whenever she finds herself standing next to an open microphone.
We look forweard to the june Q results and updated outlook from MPEL... we like Lawrence's upod framing of 15% GGR growth for Macau this year (said knowing VIP was being crossed into Premium Mass by MPEL) and can hardly wait to see more info on their "PHENOMENAL" Golden Week that began May.
"Adjusted EBITDA(1) was US$330.1 million for the second quarter of 2013, as compared to Adjusted EBITDA of US$203.8 million in the comparable period of 2012. The 62% year-over-year increase in Adjusted EBITDA was [primarily] attributable to strong growth in the mass market table games segment at City of Dreams..."
A ceo focused on quant and FCF generation?
"I am pleased to report another successive quarter of record earnings and EBITDA, building on the strong momentum in the first quarter of 2013.
"Highlighting the ideal strategic positioning of our flagship property, City of Dreams, this premium-mass focused property once again captured meaningful market share in the mass market table games segment which, in turn, has been the major driver of our impressive group-wide performance in the second quarter of 2013. City of Dreams' unique ability to cater towards these highly discerning, premium mass market-focused customers is highlighted by our market-leading mass table yields, which is increasingly important in a table supply constrained market."
"Premium mass focused property" is pointed here... as the most desirable players and MPEL have forged their very own direct stay and play relationships including credit arrangements settled up every 30 days, you need not wonder too much why VIP GGR growth has diminished in macau YOY, quite apart from all of the other headline bs and particularly as other venues try to follow MPEL's leadership on this dynamic.
Here's more from ho on that: "We continue to move forward with the fifth hotel tower at City of Dreams and anticipate to commence construction by the end of 2013. This iconic additional hotel tower represents another powerful addition to our wide array of amenities and attractions that City of Dreams already offers its premium-mass and high end customers, providing another tool to further extend our leading position in this key segment."
Tower 5 is rolling on schedule as poer subsequent updates.
This is fun stuff for longs... LOL
Start by reading my latest "Quant fun" post that Sybil, who is dumber than dirt from all visible references and can't do 3rd grade math as we've seen before, apparently doesn't like. (ROFL) Yeah, if mass is growing at 36% in macau and MPEL is leading the pack on that piece of the pie and now pushing 80% of revenue from that vs VIP, matrix got it right 80% up 36% is (net) gaming rev growth of around 28% [(0% x 20%) + (36% x 80%)] for MPEL this Q -- even if VIP is flat/zero % growth for them during the 2Q14.
Compare that framework to the range of brokerage estimates out there for the June Q. The consensus number gets to around 3.5% growth, while the highest number of $1.51B drives growth of 17% yoy for the June Q. There's some room for upside surprise here, huh?
Sounds too optimistic? Maybe so (wry smile). Everyone who has more than 10 shares long here ought to go back and study last year's June Q a bit. Lawrence Ho's quote in the PR were all about how ideally positioned MPEL's COD was for pursuing their premium mass and mass gaming growth with constrained table growth for everyone. Seems he understands the ebitda and margin numbers on all these little quant details...
Without footprint expansion, during the June Q13, net revs grew 37% YOY! Reflecting the operating leverage, adj ebitda grew 62% YOY fir the Q ended June 2013. 62%! One might study the terms if they are a mystery because that is driving what Ho called MPEL's key objectives of "maximizing ROIC" and further expanding their ideal position in Macau and coming with COD Manila and Macau Studio City on schedule. Sybil and unhedged shorts can pass -- they don't know how to do math. LOL
Here's some more from Ho with my color comments:
The idiots at Zacks obviously has no idea what an "Integrated Resort" is or what the difference is between flat VIP for the Macau IRs vs MPEL growing mass/premium mass AT LEAST as much as Macau's reported 35%+ for the 2Q14 overall.
Here's quant fun in the form of a 3rd grade math quiz one can use to help develop an understanding of the MPEL story. If 20% of their gaming revenue stream is growing at 0% for the quarter (i.e., VIP is flat yoy), and the mass gaming portion (some 80% of MPEL's revenue -- by far best in class) is growing at 35%+ for 2Q14 yoy with a margin of more than 3x the VIP business, then how much will MPEL have for increased gaming revenue expressed in percentage terms yoy?
b. Negative 3.7%
d. No one can tell so it is best to sell the stock, especially since a complete idiot posts dog S under 30 or so aliases here all day long.
Soon to come: a fifth grade math quiz on what operating leverage means to adj ebitda growth for MPEL.
If anyone had any doubt about how absolutely useless Zacks "Investment Research" is, their "analysis" of MPEL today should be reason you get a refund back on your subscription cost. I've never read anything from them worth acting on, but this takes the cake. What a POS -- good for nothing except maybe training a new puppy in the house.
The Sybil (aka poser Shirley Mason) multiple personality idiot talking to herself on 30 names here all day long must be the author for that nonsense. MSC a waste if no gaming license? Search on "table limit" on thios board for authoritative sources to think through that bs. LOL
great comments... the good news about Vegas VIP last month is that Steve and Shel must have done some "old school" charter flights bringing in the Asian players. That let Tam pound his head into the pile of bs he helped mound regarding UnionPay machines (that is all about nothing of meaning to the elite venues), Visa nonsense (5 vs 7 days), smoking "bans" (that will turn out to be a benefit to those who do not want to be in smoke-filled casinos and yet a convenient place to smoke for those who do want to breath tobacco air all night), "corruption" crackdowns (yawn, but good comedy from Tam), table limits (that really aren't remotely adhered to even as rough guidelines), and so on and on... and since then he's clarified that UnionPay restrictions are just bs and tried to make the soccer excuse for why things looked slow for VIP last month.
Buttboy Tam and all of the central planners over there likely have had a huddle or two about protecting the Golden Goose that is Macau gaming, visitation, tourism, travel, restaurants, credit fees, etc.... All good news for Macau's future GGR growth.
We were going to add more yet another good slug here today but the DAL opportunity was too compelling to do anything else with capital today. As for the multialias #$%$ still using 20 aliases here daily, way too funny. I wonder if he was able to shake out 200 shares from the 48 retail investors reading here daily. LOL
The pm coming up the learning curve on this story (and LVS for that matter) are buying all the putz brigade will gift down here. Just think: if VIP is flat for MPEL, then they will have GR growth of "only" about 28% this quarter. LOL
Hey grftt, do you have more info on whether this hurt the Philippines in any way? This report said it largely missed the Philippines... This storm is supposed to bring sustained winds of 150 mph and gust up to 200 mph and waves up to 45' high! to Okinowa Japan... they are calling it the strongest superstorm EVER. Hopefully people get their families away from coastal areas!
"The Philippines was spared from the ferocious winds of Neoguri, which blew closest to land late Monday when it roared about 480 kilometers (298 miles) east of the northernmost province of Batanes, government weather forecaster Gladys Saludes said.
While the typhoon did not make landfall, it intensified the southwest monsoon, dumping heavy rains to some western Philippine provinces, she said."
My fav part of the great news china is broadcasting:
“China’s economic performance in the second quarter has been improved from that in the first quarter. However, we cannot lower our guard against downward pressure,” Li said.
And the new board dufus keeping us busy stuffing the ignore bin (unreal that yahoo lets abusive dolts post with more than one alias per company) is talking about Macau stocks "tanking" after the latest analyst upgrade? LOL
Yeah, the HK shares were down 1% overnight -- on a "whopping" 17400 shares. Converting that to the U.S.-listed ADS share equivalent, that is a mouth-dropping 5800 shares worth of painting the tape. But it is funnier than that: the HK shares were up that amount last Friday while U.S. markets were closed. LOL Even funnier is that for more than the first half of the day and volume-weighted, the "whopping ADS 5800 shares traded at ~flat for Monday in HK... it weas the last copuple thousand shares of dippy painting that took them down.
Beyond the fundamental and quant reasons the stock remains undervalued, the chart is now VERY constructive for longs. Down days over the last few weeks have been few and light trade weighted volume, the stock is back above the 40w ema and the 50d ema is now turning up.
Those are ridiculously uninofrmed and errant perspectives. DAL is by far the superior mgmt, balance sheet, ebitda and capital distribution story now... American is better only as to relative earnings multiple against near term eps growth.
We own both and ALK too.
LOL at the morons suggesting this is a short. DEad dead dead... ZQK was a great short at $8... this is one of the key stocks to own 2H14.
DAL easily the best balance sheet, execution, international routes and management, and the biggest ebitda and share buyback program on top of all of that... if you only own one airlines, this is it. But AAL and ALK are both great stocks for the run coming. We own all three, but more DAL than the other two combined x 3.
See my comments on DAL's news from last week... AAL in the same great position except DAL has better routes, mgmt and balance sheet -- but AAL's relative valuation makes up for that. They will both mash it into EOY.
The HOTELS are also mashing! From IBD:
The record-high stock market and rebounding home values have made consumers feel more confident and comfortable about taking vacations, said Arthur Adler, Americas CEO and managing director of JLL's hospitality group. On the business side, the modest economic recovery coupled with slow job growth has necessitated more travel for workers, he added.
More recently, group travelers have begun to book rooms with increasing frequency, which should give the industry a further boost, say Adler and Scott Smith, senior vice president in the Atlanta office of PKF Consulting USA, an advisory and real estate firm specializing in the hospitality industry.
The important group-bookings segment, which includes state organizations, business meeting groups and worker incentive travel programs, pulled back not only because of the slow recovery, but also as result of the negative reactions to the American International Group's (NYSE:AIG) widely publicized retreat at a swanky resort soon after receiving bailout funds, Smith said.
Only now is the group travel segment beginning to book rooms on par with its activity before the recession, which should give the industry a further boost, he adds.
"I've been doing this for 25 years and have never seen the kind of economics that are driving hotel revenues right now," said Smith, referring to the steady rise in fundamentals and lagging construction of new rooms. "We think we're in a real sweet spot."
Investors think so, too. The R.W. Baird/STR Hotel Stock Index, which tracks the 15 largest publicly traded hotel companies, is up 11% year-to-date, outpacing the S&P 500 by about five percentage points.
Three of the six largest companies by market cap in IBD's Leisure-Lodgi
just clicked to see if this moron replied on other posts of quality. LOL... Forest is one idiot and a half and pos. LOL
Hope he is still short his 3 shares here though... stock is up $40 or so since the moron tried to dis me and we plain love having deutcheee bags opposite our thinking and trades.
Nothing is up like our trades here you F putz... anyone paying attn to us has likely been long since Dec 2012 at $595. This stock has more than doubled since, and no, you pos, the market has not done that.
Moreover, anyone who put on a trading sleeve and or re-established the core at $950 is similarly kicking butt right along with us, as is everyone who piled into TRIP on the recent low with us (we sold that out two weeks ago to add to EXPE, on which we recently blew out the core we owned at $58 from a year ago if you go stalk our posts LOL)
Here we traded a sleeve of PCLN at $1120 as noted right here, which sleeve we blew out of at $1260 two weeks ago before reloading half at $1205 on the OPEN dip and more at $1191 as we noted then.
Did I mention FY for trying to dis me with your stupidity? Yeah, FY.