Macau Gaming Gains Related to UnionPay News, Sterne Agee Says; Likes Melco Crown (MPEL) and Sees Group Sentiment Shifting Back to Positive

Sterne Agee analyst David Bain confirmed that today's upside in Macau casino names is related to news that Secretary for Economy and Finance, Francis Tam, clarified that the Macau Government has not asked jewelry or watch retailers accepting UnionPay to cease operations or move out of casino resorts.

Bain continues to rate Melco Crown Ent. (NASDAQ: MPEL) a Buy on low valuation and catalysts, including: Opening the only significant casino in Asia this year (City of Dreams, Manila); likely Japanese gaming expansion approval in Fall (MPEL on the short list of potential operators); opening Macau's next new casino resort in Mid-2015, best located casino in Cotai; longer-term potential for increased dividends and share repurchases; and premium mass tower opening at City of Dreams in 2016.

Bain also believes, "sentiment for Macau names is shifting back to positive. We note two high-profile downgrades of the sector within the last 10 days and all Macau stocks are higher within the same time frame."

Melco Crown is up 4.3%, meanwhile Wynn Resorts Ltd (NASDAQ: WYNN) is up 2.9,.Las Vegas Sands (NYSE: LVS) is up 2.9% and MGM Resorts International (NYSE: MGM) is up 2.4%.

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