Gaming Stocks Active as Planets Align for Record Macau Revs in Dec. (LVS) (WYNN) (MGM)

December 26, 2012 11:23 AM EST
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Price: $55.74 -0.18%

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Gaming stocks are largely positive today amid expectations for some serious revenue numbers in December from gambling mecca Macao.

According to Sterne Agee's Davi Bain and crew, table-only gross gaming revs (GGR) are 21.6 billion patacas in December. Including slots, GGR has a run rate of 27.8 billion patacas in December, about an 18 percent gain from last year.

If Bain's estimate is correct, that would break October's single-month revenue record of 27.7 billion patacas.

Bain thinks December's GGR numbers will be from better VIP traction and China's improving macro picture. He comments that China's "visa loosening (allowing for Mainlanders to apply for a HK or Macau visa from their place of work rather than traveling back to their place of registration under the hukuo system) is working to the benefit of Island results." Colder weather in Northern China as well as a recent crackdown on casinos in Russia may also bolster results.

Despite the sentiment, Sterne is still looking for a 16 percent rise, better than the consensus at 15 percent.

Traders will be focused on Las Vegas Sands (NYSE: LVS), Wynn Resorts (Nasdaq: WYNN), MGM International (NYSE: MGM), Melco Crown (Nasdaq: MPEL), and others as data pans out.

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