Wynn Resorts Ltd
GAN Inks iGaming Deal with Wynn, Stock Jumps 12 Percent
Which Consumer Stocks Failed to Impress Last Week?
On June 4, Starbucks (SBUX) announced that its executive chairman, Howard Schultz, would be stepping down on June 26.
Top Losses: Cruise Operators Fell on June 5?
Carnival, which is a US-based cruise company and the world’s largest travel leisure company, was the S&P 500’s top loss on June 5.
Why Last Week Was Positive for the Consumer Sector
Last week marked the end of earnings season with 99% of companies in the S&P 500 having reported.
Macao Hotel Inventory to Double amid Falling Occupancy
With over 9,000 hotel rooms, Sands China (LVS) has the largest share of the total hotel inventory in the Macao region, at 60%.
What Analysts Are Recommending for Major Casinos
Analysts seem to be favoring MGM Resorts (MGM) stock over the other major casinos. Of the 17 analysts tracking the stock, 16 of them recommend a “buy.”
China’s Economy: A Slowdown in Second Half of 2017?
A weakness in the Chinese economy could adversely affect the spending capacity of the Chinese people, which could lead to fewer visitors at Macao.
Macao Casinos Hope Hotel Supply Will Drive Demand
Macao’s casinos are trying to change Macao from a gaming-only destination to more of a Las Vegas–like destination.
What Do Inflation Numbers in Macao Indicate?
Macao’s annual inflation as measured by the composite consumer price index rose 1.03% YoY (year-over-year) in July 2017.
What Unemployment Numbers Tell about Macao Casinos
In 2000, the unemployment rate in Macao peaked at 7.0%. Since then, tremendous growth in the gaming industry has helped reduce unemployment.
Macao Visitor Arrivals Improve in July 2017
For July 2017, visitor arrivals increased 4.4% YoY to 2.9 million visitors. However, on a month-over-month basis, visitor arrivals increased 22.7%.
Are the New Integrated Resorts Increasing Macao’s Market?
Macao’s gross gaming revenue growth in the past four months has many analysts believing that the growth is driven by the shift to the mass market.
VIP Segment Driving Macao Casinos’ Short-Term Recovery
For the first quarter of 2017, VIP gross gaming revenues rose 16.8% YoY (year-over-year) to MOP 35.6 billion.
Macao July Revenues Saw Highest Growth in 2017, Beat Expectations
According to the Gaming Inspection and Coordination Bureau, Macao’s gross gaming revenues have risen 29.2% YoY to MOP 23.0 billion ($2.9 billion).
Casino Stocks Lose Recovering Streak in August
Stocks of major Macao casinos have been on the rise since September 2016 when casino revenues started rebounding.
Consumer Companies: Analysts’ Ratings for August 14–18, 2017
On August 15, Canaccord Genuity upgraded VF Corporation (VFC) to a “buy” from a “hold” and raised the target price to $73 from $58.
What Analysts Recommend for Major Casino Stock
Analyst recommendations Analysts favor MGM Resorts (MGM) stock over other major casinos’. All 20 analysts tracking the stock recommend “buy.” Seven (35%) of these analysts have “strong buy” recommendations, while the remaining 75% have “buy” recommendations. For Melco Resorts & Entertainment (MLCO), 15 (68.2%) of the 22 analysts tracking the stock recommend “buy,” and 31.8% […]
Macao’s Visitor Arrivals Improve in May 2017
Visitor arrivals increase In May 2017, visitor arrivals rose 3.7% YoY (year-over-year) to 2.6 million visitors. However, month-over-month, visitor arrivals fell 6.3%. Visitor arrivals have been improving since September 2016, except in February 2017, when they fell 5.6% to 2.5 million visitors. In the first five months of the year, visitor arrivals in Macao rose 6.3% […]
Analyzing Macao Casinos’ Valuation
Current industry valuation As of June 23, 2017, the Macao casino industry’s valuation stands at 12.1x. However, the average valuation for 2017 is much lower, at 11.3x. However, this valuation is a definite improvement from the lows seen in 2015, when the industry valuation averaged at 9.6x. The industry saw its highest valuation of 16x […]
China’s Economy May Spoil Macao’s Party
China: The key market The Macao region relies heavily on the Chinese mainland, as it garners a huge majority (about 67%) of its visitors and VIP gamers, from China and its neighboring countries. The weakness in the Chinese economy will adversely affect the spending capacity of people in the country, which could lead to a […]
Macao to See High Growth In Hotel Room Supply
New inventory The new integrated resorts opened last year by Melco Resorts & Entertainment (MLCO) and Wynn Resorts (WYNN), and those slated to open in the next two years, are set to increase Macao’s hotel inventory by more than a third. At the end of April, Macao had approximately 37,000 rooms. This figure is expected […]
What Macao’s Inflation Rate Indicates
Inflation rate Inflation is an overall rise in the price of goods and services in an economy, leading to the fall in purchasing power of money. Macao’s annual inflation, as measured by the composite consumer price index, rose 0.95% YoY (year-over-year) in May 2017, higher than the 0.8% increase seen in April. Macao’s inflation has […]
Why Investors Should Watch Macao’s Unemployment Rate
Unemployment rate The unemployment rate indicates the percentage of the labor force that is currently unemployed but actively seeking employment. In 2000, the unemployment rate in Macao peaked at 7%. Since then, tremendous growth in the gaming industry has helped reduce employment in Macao. Unemployment averaged 3.8% between 1996 and May 2017. Between January and […]
Are New Integrated Resorts Expanding Macao’s Market?
Increasing market In the past four months, Macao’s gross gaming revenue has grown. Many analysts believe that the growth is not coming from cannibalization of existing casinos, but growth in the overall market size due to a shift to the mass market. Macao’s revenue grew 18% YoY (year-over-year) in February and March, followed by a […]
Macao’s Mass Market Growth Story Remains Promising
VIP revenue driving short-term growth The recent growth in Macao casino revenue has been driven by the VIP segment. In the first quarter of 2017, VIP gross gaming revenue grew 16.8% YoY (year-over-year) to 35.6 billion Macao patacas. The VIP segment is also showing good signs. The repayment cycle has been maintained at a healthy 20 […]
Macao Revenue Beats Expectations by a Wide Margin
May revenue marks a high point According to the Gaming Inspection and Coordination Bureau, Macao’s gross gaming revenue has risen 23.7% YoY (year-over-year) to 22.7 billion Macao patacas, or $2.8 billion. The revenue growth beat analysts’ estimate by a wide margin. Analysts had forecast Macao’s May revenue to grow 16.5% YoY. May marks the tenth consecutive […]
Why Should Investors Keep a Watch on Macao’s Unemployment Rate?
Macao’s unemployment rate was as high as 7% in 2000. Growth in the tourism and gaming industry helped to curb the high rate.
Macao’s Gaming Revenues Posted Double-Digit Growth in February
Macao’s casinos reported their seventh consecutive month of revenue growth in February 2017. Casinos’ February revenues rose 18% year-over-year (or YoY) to ~$2.9 billion.
Why Macao’s Casino Stocks Continued to Gain in March
Macao casino stocks continued to gain value in March 2017. In the month, Wynn Resorts (WYNN) was the biggest gainer with a 19.9% rise.
What Does the Flattening Yield Curve Indicate for Investors?
Bond markets are experiencing rising yields due to higher economic growth expectations. However, the 10-Year Treasury yield was still low at 2.4% on March 29, 2017
What’s Priced into Macao Casino Valuations?
As of January 3, 2016, the Macao casino industry valuation stands at 12.6x. This valuation is lower than the industry average valuation of 12.05x since February 2008.
Is Oversupply a Concern for Macao Casinos?
Macao casinos’ $28 billion investment in integrated resorts is set to change the city’s gaming business.
Is the Mass Market Shift Working for Macao Casinos?
As VIP business continues to remain sluggish, casinos are increasingly turning their attention towards the mass market.
Can New Resorts Lead the Way to Recovery for Macao Casinos?
Sands Parisian opened its resort in September 2016 and has been leading the mass market recovery ever since.
What Do Macao’s Inflation Figures Indicate?
The annual inflation in Macao fell to 1.5% in November 2016.
Why Should Investors Keep an Eye on Macao’s Unemployment Rate?
For September 2016 through November 2016, the unemployment rate stood at 1.9%.
Is Macao’s Visitor Arrival Trend Improving?
For November 2016, visitor arrivals remained unchanged as compared to November 2015 and fell 3.4% month-over-month to 2.6 million visitors.
Why Were Macao Casino Stocks on a Losing Streak in December?
After rising for four consecutive months from August to November, Macao casino stocks posted losses in December.
Hotel Inventory Is Rising, but Is There Enough Demand?
Macao casinos’ $28-billion investment in integrated resorts will change the city’s gaming. Capacity additions should increase the number of slot tables too.
Can New Resorts Lead the Way in Macao Casinos’ Recovery?
Wynn Resorts opened its $4.1 billion Wynn Palace on August 22, 2016, and this may have directly contributed to Macao’s casino industry recovery in August.
How Macao’s Attempts to Woo Mass Market Consumers Are Going
As VIP business remains sluggish, casinos are increasingly turning their attention to woo mass market.
Why Macao’s Unemployment Rate Should Stay on Investors’ Radars
Macao’s unemployment rate reached 7% in 2000. Growth in tourism and gaming helped curb high rates, bringing the average down to ~3.9% from 1996 to May 2016.
What Do Macao’s Inflation Numbers Indicate?
The annual inflation in Macao fell to ~2.1% in July 2016. Inflation has, in fact, been on a declining trend in the region since February 2016.
Revival or Luck: Analysts’ Takes on Macao’s Revenue Rise
After 26 consecutive months of declining revenues, Macao gaming revenues have finally shown a small spurt of growth.
Macao Casino’s Stock Rises on Revenue Growth
Macao, the largest gaming hub in the world, has seen big growth in the past decade but has also seen declines since China imposed restrictions in 2014.
Icahn’s Tropicana Entertainment: The Gaming Company
Icahn Enterprises (IEP) owns 68% of the outstanding stock of Tropicana Entertainment through Icahn Enterprises Holding LP (IEH).
Macao Casino Industry Valuation: What’s Priced In?
As of December 10, 2015, the Macao casino industry’s valuation stands at 12.9x. This is close to the industry average valuation of 12.5x in April 2008.
Why the Cotai Strip Is Important for Macao Casinos’ Recovery
Casino operators that have opened resorts on the Cotai Strip are gaining market share at the expense of those who haven’t.
Have the Tables Turned on Macao Gaming Revenues in 2016?
Macao casinos’ gaming revenues remained flat at -0.1% in February 2016. February marked the 21st consecutive month of falling revenues.
Discretionary, IT Lifted the MFS Growth Fund through November 2015
Introduced in September 1993, the MFS Growth Fund (MFEGX) has witnessed several market cycles. MFEGX was an above-average performer among the 11 funds in this review.
Measuring Wyndham Worldwide’s Exchange and Rental Business—The World’s Largest
Wyndham Worldwide’s Wyndham Exchange and Rental segment is its most geographically diversified business segment, with a presence in over 100 countries.
Mapping out Wyndham Hotel Group’s Regional Distribution
In 2014, the US accounted for two-thirds of the rooms in Wyndham Worldwide’s total portfolio, followed by the Asia-Pacific at 16.5% and Europe at 8.2%.
Introducing Wyndham Worldwide, a Hotel Super Power
Wyndham Worldwide is considered the world’s largest hotel franchiser. It owns the world’s largest vacation ownership and exchange network.
Why the Macao Casino Industry’s Valuation May Remain Low
As of December 10, 2015, the Macao casino industry’s valuation stands at 11.10x.
Macao’s Hotel Inventory to Double amid Falling Occupancy
With over 9,000 hotel rooms, Sands China (LVS) has the largest share at 60% of Macao’s total hotel inventory.
Gaming Stocks Tumble after Mild Recovery in October
Macao has seen extraordinary growth in the past decade and a half. It has also seen a similar fall ever since the Chinese government imposed anti-corruption restrictions in 2014.
How Core Picks Have Fueled Wins for the T. Rowe Price Blue Chip Growth Fund
The top performer in all periods except the three-month period, the T. Rowe Price Blue Chip Growth Fund rose by 9.9% in October over the previous month.
How is the Las Vegas Sands Using Its Cash Flows?
The Las Vegas Sands is focusing on controlling costs in the already weak Macao region. It generated better cash flows as it focused on the higher margin mass and non-gaming segments.
What Can We Expect From Las Vegas Sands in the Macao Market?
The weakness in the Macao market continues as the region sees gaming revenues decline for the 16th consecutive month as of September 2015.
Wynn Resorts Beats on Earnings in 3Q15: Can it Continue?
Wynn Resorts’ (WYNN) third quarter numbers missed most Wall Street analysts’ estimates. The company’s revenues for the third quarter fell to $996.3 million.
Overview of Wynn Resorts’ 3Q15 Earnings
Wynn Resorts’ VIP segment’s turnover fell by a 51% to $12.2 billion, from $25 billion in 3Q15. Mass market revenues fell by 13.7% to $1,197 million.
Overview of Wynn Resorts in September and October
The third quarter earnings call from Wynn Resorts disappointed investors. The company’s already weak stock fell by more than 7% in after-hours trading.
How Does Wynn Resorts Compare to Its Peers?
The peers are way ahead of Wynn Resorts based on the price-to-sales ratio. The ETFs outperformed Wynn Resorts based on the price movement and PE ratio.
Las Vegas Sands’ Valuation Multiple Could Change after Earnings
As of October 12, 2015, Las Vegas Sands’ (LVS) valuation multiple stands at 11.7x. This is lower than its average forward EV-to-EBITDA multiple of 16.14x.
Will Las Vegas Sands Surprise Again in 3Q15?
Las Vegas Sands is expected to continue reporting grim earnings in 3Q15.
Analysts expect LVS to post a year-over-year decline in earnings per share and revenue, driven by weakness in business.
Are Troubles Over for the Gaming Industry?
The gaming industry has been heavily dependent on Macao, and the Chinese economy’s troubles don’t seem to be going away soon. Companies are finding new destinations in Japan and Korea to develop the next Macao.
Why Did Las Vegas Sands Stock Fall Rapidly in September?
Las Vegas Sands (LVS) stock remained relatively flat or slightly lower in July and August. But the steepest fall came in September, dragging the stock down about 18% in a short time span.
Las Vegas Sands Missed Top and Bottom Line Estimates for 2Q15
Las Vegas Sands (LVS) had a difficult second quarter, missing both top line and bottom line estimates. The top line fell 19.4%, while operating income fell 28.3%.
Wynn Emerged as a Top Gainer; Mining Stocks Made the Top 3
Though the energy sector of the SPDR S&P 500 ETF gained the most on Friday, October 2, 2015, the top gainer of the day was Wynn Resorts.
What Led to the Rout in Chinese Stocks?
The rout in Chinese stocks was only a matter of time. It’s clear that this wasn’t a bull market due to fundamental reasons.
Freeport-McMoRan Leads SPY by 5.03% on September 10, 2015
The SPY rose 0.54% on September 10. US investors, despite the Fed’s upcoming rate hike decision, were calm. All SPDR sectors except utilities rose.
Energy Stocks Advance with Rising Oil Prices, SPY Down by 0.81%
Energy stocks continued their upward movement for the fourth straight day, and the SPDR S&P 500 ETF fell by 0.81% on August 31.
The Valuation of Macao Casino Stocks
Macao’s shift from VIP gaming to the mass gaming market and non-gaming revenue is expected to benefit Macao in the long run.
Will New Capacity Additions Drive Future Growth for Macao Casinos?
In May 2015, Galaxy Entertainment doubled its capacity with its two new projects: Galaxy Phase 2 and Studio City.
Macao Visitor Arrivals Also Decline
The Macao strip has seen a slump in the number of visitor arrivals since the Chinese government’s strict crackdown on corruption.
Gross Gaming Revenue and Revenue per Visitor Continue to Decline
After witnessing a decade of exceptional growth in revenues, the Macao casino industry is going through its worst fall with July marking 14 straight months of declining gaming revenues.
Macao Casino Stocks Continue to Tumble
Macao casino revenues have been falling ever since the Chinese government imposed stricter regulations in June 2014.
Is US Economic Growth Satisfactory in the Eyes of the Fed?
From the perspective of monetary policy, a strong rate of economic growth is required for a central bank to tighten policy.
Skyworks Solutions: Will Exposure to China Hurt Returns?
On July 23, 2015, Skyworks Solutions declared its 3Q15 results and reported $810 million in revenues compared to $587 million in 2Q14.
Why Should Investors Watch China’s Disposable Income?
A major percentage of visitors at the Macao casinos are from China. In May 2015, the visitors from China contributed to about 66% of the total arrivals.
Despite a Slowing Gaming Market, Visitor Arrivals Rise in Macao
The gaming market in Macao has seen a steep fall in the past year due to a fall in the number of VIP or high-net value visitors in the city.
Macao’s Revenue per Visitor Continues to Fall
Macao’s gaming revenue per visitor was at 999.6 Macanese pataca in May 2015—a rise of 6% from 942.4 in April 2015. This came after a huge fall in April 2015.
Macao’s Gambling Revenue Continued to Fall in June 2015
The casino industry in Macao witnessed its 13th straight month of falling revenue in June 2015. For June, the revenue fell by about 36% YoY to $2.17 billion.
Consumer Spending Rose to $91 per Day in April
April saw the largest monthly increase in consumer spending since November 2014.
Wynn Resorts Is a New Addition to Bridgewater’s 4Q14 Portfolio
Bridgewater Associates started a position in Wynn Resorts (WYNN) during the fourth quarter of 2014.
Highlights of Bridgewater Associates’ New Positions in 4Q14
Ray Dalio’s Bridgewater Associates filed its fourth-quarter 13F in February 2015. In 4Q14, the fund had opened four new positions.
Macau’s inflation rate falls again
When inflation decreases, consumers have greater purchasing power and a higher spending capacity. This is a positive sign for casino resort companies.
Why Macau’s gambling revenue per visitor increased
Macau’s average gaming revenue per visitor is ~$1,200–$1800, roughly 8–10 times higher than the Las Vegas Strip’s average gaming revenue per visitor.
Why Macau’s gambling revenue halved in February 2015
Macau’s restriction on using China UnionPay debit cards at casinos to curb illegal money flow could be a factor in February’s drop in gambling revenues.
US unemployment rate hits six-year low, another plus for leisure
The US unemployment rate increased slightly in January to 5.7% compared to 5.6% in December. The number of new jobs in January was expected to be 234,000.
US consumer sentiment hits 11-year high, good for casinos
The US consumer sentiment index was 98.1 in January, up from 93.6 in December. This is an 11-year high, the highest on a final basis since January 2004.
Disposable income increases, drives demand for leisure
Real disposable income increased 3.7% year-over-year. This boosts consumer buying power and means consumer spending in leisure activities may increase.
Las Vegas sees pricing improvements, visitor arrivals remain flat
Revenue per available room (or RevPar) was $122.03 in January 2015, up 10.2% year-on-year. RevPAR increased on account of pricing improvements at the Strip.
MGM’s share price has huge upside potential
MGM’s share price hasn’t been impacted much by the anti-corruption campaign in China. The campaign took a toll in 3Q14. Its business has ~33% exposure in Macau.
MGM’s earnings plunged, but domestic operations set a record
MGM derives one-third of its revenue from China. It witnessed a significant decline in revenue and earnings due to a lack of VIP participation.
MGM’s hotel revenue was driven by higher convention mix
Hotel revenue at MGM’s wholly owned domestic resorts for the three months ending December 31, 2014, increased 6% YoY.
Why did MGM Resorts’ revenue fall in 4Q14?
For 4Q14, the net revenue was $2,386 million—down by 5.1% on a year-over-year, or YoY, basis. On a quarter-over-quarter basis, net revenue fell 4%.
MGM Resorts – a global leader in hospitality and entertainment
MGM Resorts (MGM) was founded in 1986. It’s based in Nevada. It’s one of the leading global hospitality and entertainment companies.
Chilton Investment Company lowers its position in Wynn Resorts
Chilton Investment Company decreased its position in Wynn Resorts (WYNN), which accounted for 1.25% of the fund’s 3Q14 portfolio when compared to 0.13% in 4Q14.
Endo International is one of Chilton Investment’s new positions
Chilton Investment has invested more than $18 million in Endo International (ENDP), which now represents 0.65% of the hedge fund’s total portfolio.