Canaccord Genuity Morning Coffee on Wynn Resorts (WYNN), Las Vegas Sands (LVS) and MGM Resorts (MGM): Craps!
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Price: $100.91 +1.32%
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Wynn Resorts (Nasdaq: WYNN), Las Vegas Sands (NYSE: LVS) and MGM Resorts (NYSE: MGM): Craps!
Macau, the world's largest gambling destination, reported a meagre 7.3% growth in its May gambling revenue on Friday, the slowest expansion rate recorded since July 2009. Total revenue of 26.08 billion patacas ($3.28 billion) is the second-highest for a single month, but a far cry from the 70-90% monthly growth rates seen in 2010 and even the 22% growth in April. While Macau, located on China's southern coast, was one of the world's fastest growing economies in 2011, a slowdown in China's turbo-charged economy has started to trickle down to the casino-crammed enclave, most visibly in a drop spending by billionaire VIP gamblers from mainland China. Falling property prices, weak stock markets and easing overall economic growth in China has dampened the ability of China's high rollers to splurge millions on gambling. Analysts have been expecting growth to ease since last year and said May’s figure was within expectations. Most remain confident that a financial collapse for the tiny territory, one-third the size of Manhattan, is not on the cards. Revenue is likely to remain steady due to rising demand from China's expanding middle class and critical infrastructure developments. A new $4-billion casino by Sands China opened in April this year and has failed to lift growth rates significantly. Despite tepid growth rates, casino operators such as Steve Wynn, are still pushing ahead with plans to expand in Macau. MGM China, SJM Holdings, and Melco Crown (Nasdaq: MPEL) are still waiting for permission to start construction.
Macau, the world's largest gambling destination, reported a meagre 7.3% growth in its May gambling revenue on Friday, the slowest expansion rate recorded since July 2009. Total revenue of 26.08 billion patacas ($3.28 billion) is the second-highest for a single month, but a far cry from the 70-90% monthly growth rates seen in 2010 and even the 22% growth in April. While Macau, located on China's southern coast, was one of the world's fastest growing economies in 2011, a slowdown in China's turbo-charged economy has started to trickle down to the casino-crammed enclave, most visibly in a drop spending by billionaire VIP gamblers from mainland China. Falling property prices, weak stock markets and easing overall economic growth in China has dampened the ability of China's high rollers to splurge millions on gambling. Analysts have been expecting growth to ease since last year and said May’s figure was within expectations. Most remain confident that a financial collapse for the tiny territory, one-third the size of Manhattan, is not on the cards. Revenue is likely to remain steady due to rising demand from China's expanding middle class and critical infrastructure developments. A new $4-billion casino by Sands China opened in April this year and has failed to lift growth rates significantly. Despite tepid growth rates, casino operators such as Steve Wynn, are still pushing ahead with plans to expand in Macau. MGM China, SJM Holdings, and Melco Crown (Nasdaq: MPEL) are still waiting for permission to start construction.
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