Las Vegas Sands and Melco Crown Entertainment Lag as Macau Gaming Revenue Growth Slows in May

The Paragon Report Provides Stock Research on Las Vegas Sands and Melco Crown Entertainment

Marketwired

NEW YORK, NY--(Marketwire -06/07/12)- Gaming stocks after a strong start to the year have fallen sharply over the last month as concerns of a global financial crisis continue to grow. The Market Vectors Gaming ETF (BJK) -- which replicates an index consisting of publicly traded companies engaged in the global gaming industry -- has fallen nearly 15 percent in the past month. The Paragon Report examines investing opportunities in the Resorts & Casinos Industry and provides equity research on Las Vegas Sands Corp. (LVS) and Melco Crown Entertainment Ltd. (MPEL).

Access to the full company reports can be found at:
www.ParagonReport.com/LVS
www.ParagonReport.com/MPEL

In Macau, China's gambling Mecca, it was recently reported that gambling revenue in May grew just 7.3 percent, the slowest rate of expansion in nearly 3 years. Revenues totaled $3.3 billion in May, the second-highest single-month total, but was nowhere near the 70-90 percent growth rates in 2010, or the most recent 22 percent growth in April.

The recent slowdown in the Chinese economy has caused a decrease in spending by billionaire "VIP" gamblers from mainland China. "The VIP slowdown is more severe than expected but we need to wait until around the fourth quarter for an easier year on year comparison. Loosening in China will also help VIP but between now and then, hang on tight," said Gabriel Chan, an analyst at Credit Suisse in Hong Kong.

Paragon Report releases regular market updates on the Resorts & Casinos Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.

The Wall Street Journal recently reported that Sands China Ltd. recently withdrew its appeal of the Macau's government's decision to reject a request for land rights in December of 2010. Las Vegas Sands reported that it has invested a total of $9 billion dollars in the Macau gaming market. In 2011, Macau gaming revenues totaled more than 5 times the revenues of the Las Vegas Strip.

Melco Crown Entertainment is an owner and developer of casino gaming and entertainment resort facilities that are focused on the rapidly expanding gaming market found in Macau. The company recently reported net revenue for the first quarter of 2012 was US$1,026.9 million, representing an increase of approximately 27% from US$806.6 million for the comparable period in 2011.

Paragon Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Paragon Report has not been compensated by any of the above-mentioned companies. We act as independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
www.ParagonReport.com/disclaimer

View Comments (0)