Posts related to ‘Casinos’

Melco Crown Outlines IPO Risks at Las Vegas Sands, MGM Too (MPEL, LVS, MGM, WYNN)

Melco Crown Entertainment Ltd. (NASDAQ: MPEL) is holding up better than many might have expected after the stellar rise seen in the casino stocks with Macau ties.  Melco Crown turned a wider loss over a year ago, despite a 70% revenue rise.  The loss was on a net basis rather than operating basis on higher depreciation and related expenses as well accounting for interest payments from the City of Dreams project.  This has implications for the coming Las Vegas Sands Corp. (NYSE: LVS) IPO, and possibly even for MGM Mirage (NYSE: MGM) after Wynn Resorts Ltd. (NASDAQ: WYNN) managed its IPO for Macau.
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Posted on: November 17, 2009 – 4:12 pm in Casinos, China, Earnings, IPOs, , , ,

Les Vegas Sands Wins on Cost Cuts (LVS, WYNN)

Money ImageWynn Resorts Ltd. (NASDAQ: WYNN) may have set a high bar for Las Vegas Sands Corp. (NYSE: LVS) and its earnings report today, but cost cuts helped the company to beat its estimates. Las Vegas Sands  reported GAAP net income of $62.4 million, but the non-GAAP operating income was $0.03 EPS and revenue was $1.14 billion.  Thomson Reuters had estimates pegged at -$0.01 EPS and $1.17 billion in revenues.  That is another instance of cost savings helping the bottom-line more than the top-line seeing improvements.

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Posted on: October 29, 2009 – 4:13 pm in Casinos, Earnings, Entertainment, ,

Regulatory Risks Hit Macau Casinos (WYNN, LVS, MPEL)

Burning Money PicNews out of Macau, China is crushing some of the gambling stocks that have direct operations in Macau.  It looks like the Chinese are considering curbing the number of gambling tables, the minimum age of gamblers that can enter the casinos, and other potential restrictions, according to the Wall Street Journal’s Asia reports.  While the full details and full implications are not yet out, Wynn Resorts Ltd. (NASDAQ: WYNN), Las Vegas Sands Corp. (NYSE: LVS), and Melco Crown Entertainment Ltd. (NASDAQ: MPEL) are all getting hit on the reports.
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Posted on: October 12, 2009 – 1:44 pm in ADR, Casinos, China, Regulation, , ,

Wynn vs. Las Vegas Sands, A Tale of Two Casinos (WYNN, LVS)

Money Stack ImageToday we had earnings from casino rivals Wynn Resorts Ltd. (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE: LVS).  While many consider these companies very similar for having higher-end operations and Macau operations or ambitions, these two earnings reports and the reactions are rather different.
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Posted on: July 30, 2009 – 5:01 pm in Casinos, Earnings, Entertainment, ,

Casino Earnings Duel: Wynn vs Las Vegas Sands (WYNN, LVS)

Money Stack ImageWe have two very pertinent earnings this week for casino and resort investors from rivals Wynn Resorts, Limited (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE: LVS).

Wynn will release results for the June 30 quarter on Thursday followed by a conference call at 12:00 PM EST (9:00 AM Pacific).  Las Vegas Sands Corp. will release its second quarter results after the close on Thursday as well, with a conference call at 4:30 PM EST.  Below is the formal data for this round of earnings along with estimates, performance, chart data, options analysis, and more.
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Posted on: July 28, 2009 – 3:23 pm in Casinos, Earnings, Entertainment, ,

What Is Macau IPO Really Worth to Las Vegas Sands (LVS, MPEL, WYNN)

Money Stack ImageLas Vegas Sands Corp. (NYSE: LVS) has been all over the news today on reports that the company may conduct an initial public offering for its Macau assets.  The company would like to raise $3 billion to $4 billion, but this would likely only be a part of that raise.  Some traders are trying to imply a $3 billion to $4 billion value on Macau based on some creative re-reporting of the Reuters figures.    What we wanted to do was figure out what the assets could fetch on their own in an IPO.  The bad news is that an outright sale right now is something we think is elusive, at least anywhere near what Sheldon Adelson would want to sell it for.  If you consider the current market values of Melco Crown Entertainment Limit (NASDAQ: MPEL) or Wynn Resorts Ltd. (NASDAQ: WYNN), the value for Macau is just not anywhere what it once was.
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Posted on: July 8, 2009 – 12:21 pm in Casinos, China, IPOs, Mergers and Buy Outs, Private Equity, , ,

The Best Short-Selling Opportunities Of The Year (C)(GE)(F)(SBUX)(SIRI)

angrybearThere is still some conversation about the federal government restricting short-selling activity in certain stocks. The counterargument to these restrictions is that short selling plays an important role in the valuation of securities by efficiently allowing investors to bet that a stock will fall as readily as they can bet that it will rise. Short sellers have the reputation, whether deserved or not, for trying to manipulate information about public companies with the hope of driving their prices down. That may be true.

24/7 Wall St. has come up with a list of the best short-selling opportunities between now and the end of the year. The list was chosen based on: 1) trading volume, 2) the total short position in the stock over the first half of the year, 3) a history of the short position in these stocks rising or falling rapidly, and 4) stocks in companies that tend to move on news throughout the year and not just on earnings information. Read More »

Posted on: July 5, 2009 – 5:54 pm in Airlines, Analyst Calls, Autos, Banking, Biotech, Casinos, Conglomerates, Consumer Electronics, Dividend, Drug companies, Editor's Picks, FDA, Green Biz, Hardware, Healthcare, Infrastructure, Internet, Large Cap Stocks, Medical, PC Companies, Pharmaceuticals, Private Equity, Retail, Short Interest, Software, Technology, Turnarounds, Wireless, , , , , , , , , , , , , , , , , , , ,

Does ‘Going Concern’ Removal Change MGM’s Position? (MGM)

MGM LogoLast night we had an interesting volume spike alert in the after-hours trading in shares of MGM Mirage (NYSE: MGM).  It turns out that the spike was because the company’s auditor’s report will no longer include the “Going Concern” note.  This is an obvious huge development, but what we wanted to look at is how much this really changes the operational situation and outlook for MGM Mirage.
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Posted on: June 24, 2009 – 9:31 am in Accounting, Casinos, Entertainment

Giving Away Vegas To Get Traffic in Vegas (WYNN, LVS, MGM)

money-stack-imageIf you have ever stayed at the Wynn resort or the even newer Encore in Las Vegas, you will know that calling either a high-end resort and casino destination may represent an understatement of the year.  Wynn Resorts Ltd. (NASDAQ: WYNN) has not been immune to the woes of Las Vegas despite the stock more than doubling from recent lows.  Las Vegas Sands Corp. (NYSE: LVS) is also in this boat along with every other casino operator.  But if you are one of the 90.8% of the employed and are one of the privileged consumers who has escaped the recession without much damage, the summer deals in Vegas are almost too good to be true. There are similar deals being offered by the Las Vegas Sands Corp. (NYSE: LVS) and by MGM Mirage (NYSE: MGM).  If you are unencumbered by the economy, Vegas is almost free right now.
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Posted on: June 18, 2009 – 10:40 am in Casinos, Entertainment, Luxury, Product Review, , ,

Media Digest 5/19/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Twitter will release business tools in an attempt to make money.

Reuters:   A GM (GM) bankruptcy is seen as nearly inevitable.

Reuters:   American Express (AXP) will cut 4,000 jobs.

Reuters:   Obama will unveil aggressive car fuel standards.

Reuters:   Madoff trustee sues Fairfield Group for $3.5 billion

Reuters:   Mail blue collar workers are losing ground in employment and compensation. Read More »

Posted on: May 19, 2009 – 2:53 am in Autos, Banking, Buffett, Casinos, Drug companies, Economy, Internet, Media, Oil & Gas, PC Companies, Press Digest, , , , , , , , , , , , , , , ,

Melco Crown Raising Cash (MPEL, WYNN, LVS)

money-stack-image26Melco Crown Entertainment Limited (NASDAQ: MPEL) has just filed with the SEC to raise up to $400 million in cash.  This is via a sale of ADS’s and underwriters were not named. These terms may change based upon market conditions, but the company listed that each ADS represents 3 ordinary shares of common stock.
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Posted on: April 13, 2009 – 12:13 pm in ADR, Casinos, China, Emerging Markets, Entertainment, Secondary Offering, , ,

Wynn Resorts Raises Cash (WYNN)

money-stack-image37Wynn Resorts, Limited (Nasdaq: WYNN) has priced a public secondary offering 9,600,000 shares, down from the 7 million shares originally  planned.  The secondary offering was priced at $19.00 per share.   Wynn Resorts intends to use the proceeds for general corporate purposes, including repayment of debt.  These shares were also sold under an existing shelf registration.
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Posted on: March 17, 2009 – 8:38 am in Casinos, Entertainment, Secondary Offering,

Boyd Gaming Files To Raise Cash (BYD)

Money_stack_pic_2Boyd Gaming Corporation (NYSE: BYD) has filed with the SEC to raise up to $750 million in cash via securities sales.  The company can sell any combination of common stock, preferred Stock, Debt Securities, Warrants, and Units once this is approved.

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Posted on: December 12, 2008 – 3:17 pm in Casinos, Secondary Offering,

Wynn Secondary Offering Should Be A ‘How-To-Model’ (WYNN, LVS)

Wynn_logoWynn Resorts Limited (NASDAQ: WYNN) accomplished a capital raise which looks to be at a far less of a discount and at much better terms than the recent financing over at Las Vegas Sands Corp. (NYSE: LVS).  Wynn was going to sell 5 million shares, yet it ended up selling 8 million shares of common stock at a $43.50 per share.   

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Posted on: November 14, 2008 – 7:54 am in Casinos, Secondary Offering, ,

In the Land of Duh!: Moody’s Downgrades Las Vegas Sands (LVS)

Las_vegas_sands_logoMoody’s had had the corporate debt ratings of Las Vegas Sands Corp.(NYSE: LVS) on review for possible downgrade since mid-July.  Just today, the debt ratings agency announced that it has lowered the corporate debt ratings of the casino operator.  Furthermore, the ratings were also placed on review for possible further downgrade(s).  In mid-July the stock traded as low as the $30’s and rallied later in July and August to see $50.00+ again.  Shares have been trading at under $5.00 today.  When will the timeliness of ratings agencies finally be challenged by oversight or by regulatory agencies?

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Posted on: November 12, 2008 – 12:59 pm in Analyst Calls, Casinos,

Caesar Shows Thumb Down on Las Vegas Sands (LVS)

Las_vegas_sands_logo_2Las Vegas Sands Corp. (NYSE: LVS) has just re-opened for trading after being halted all day.  After the news today it is of little surprise that the stock is being hit hard after the severe discount of its new financing package.  This stock opened at $6.50 and 10 million shares traded hands as of 12:56 PM EST. They are now at $6.40. 

We previously noted the financing package was a two-sided issue, but now the company said its board of directors approved this without shareholder approval to avoid further damage from delay.  The Chinese have also apparently said that they are not going to rescue the Macau operations if needed.  Why would they? They could get it for free without using a totalitarian seizure.

Jon C. Ogg
November 11, 2008

Posted on: November 11, 2008 – 12:59 pm in Casinos, Secondary Offering, Trading Alert,

Las Vegas Sands Gets A Lifeline (LVS)

Las_vegas_sands_logoLas Vegas Sands Corp. (NYSE: LVS) initially showed up on our day trader alerts this morning as one of the Macau casino movers.  But right before the open Las Vegas Sands announced that it has reached a deal to raise capital.  The casino has priced a public offering of a whopping 181,818,182 shares of common stock, plus 5,196,300 shares of 10% Series A Cumulative Perpetual Preferred Stock, and warrants to purchase an aggregate of approximately 86,605,173 shares of common stock at an exercise price of $6.00 per share.

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Posted on: November 11, 2008 – 10:10 am in Casinos, Secondary Offering,

Looking Inside Wynn’s Vault (WYNN)

Wynn_logo_2We just got earnings out of Wynn Resorts Ltd. (NASDAQ: WYNN).  The ultra-high-end casino operator posted non-GAAP EPS of $1.11 on revenues of $825.2 million (after a 50% gain in Macau revenues). Estimates from First Call were $0.93 EPS on just over $828 million in revenues. 

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Posted on: July 24, 2008 – 3:18 pm in Casinos, Earnings,

Steve Wynn About To Show His Pocketbook (WYNN)

Wynn_logoVery shortly after today’s close we are going to get a good glimmer into the overall health of casino stocks as Wynn Resorts Ltd. (NASDAQ: WYNN) is going to be opening its back office doors for a day to show how much money the company is making.  Of the major casinos, this is the highest end of the spectrum as far as the income level of customers.

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Posted on: July 24, 2008 – 2:07 pm in Casinos, Earnings,

Penn Actually Wins In Merger Implosion (PENN, FIG)

Penn National Gaming Inc. (NASDAQ: PENN) has been considered a dead merger for quite some time, yet it only officially became a dead merger this morning.  This was the last of the big multi-billion deals still officially on the books that was put together back before we had a full blown credit crunch.

PNG Acquisition Company Inc. was the entity that was going to do the acquisition, and that was an entity indirectly owned by certain funds managed by affiliates of Fortress Investment Group LLC (NYSE: FIG) and Centerbridge Partners, L.P.

The buyout price of $67.00 per share was older than Methuselah.  Since January, this stock slid steadily from over $60.00 down to under $30.00.  The deal was a known to be dead by everyone.  But there is actually a silver lining here for the company.  Penn National will get $1.475 Billion in cash out of this.  The breakdown is a $225 million deal termination fee, and the rest will be a $1.25 Billion redeemable preferred equity due 2015.  Affiliates of Fortress, affiliates of Centerbridge, affiliates of Wachovia, and affiliates of Deutsche Bank will all be holders of those notes.  To top it off, Fortress Investment Group’s  Chairman & CEO, Wesley Edens, will join the Penn National Gaming Board of Directors.

Penn National has also issued preliminary 2008 guidance of $2.5388 Billion in revenues, with $682.3 million in EBITDA, and $487.2 million in income from operations.  It will also repurchase $200 million in shares.

Wall Street is actually applauding this somewhat.  Shares are up 1.4% at $28.97 shortly after the open.  Penn National Gaming has a $2.5 Billion market cap as of today.  Penn isn’t a pure casino play as it also hold raceways.  But that sector has also seen a 50% drop (or worse) in many of the key names from last year’s highs, so the share price drop here is actually in-line performance. 

Penn had $2.9+ Billion in long-term debt and total liabilities stood at $3.85+ Billion in total liabilities.  This looks like it is going to bolster the company’s books more than any hurt an already-known dead merger was going to do. It is always possible you’ll see a selling response, but after looking it over the company is going to have a better operating structure with far less leverage than it would have been under that merger.

Jon C. Ogg
July 3, 2008

Posted on: July 3, 2008 – 8:48 am in Casinos, Mergers and Buy Outs, Private Equity, ,