Gaming Stocks - Page 27

Just a follow up to the run gaming made yesterday>

For the long term BYD has a better track record and as Vegas recovers their seasoned management team will do what it takes to raise up the pps. They do have a problem in AC as revenue is declining due to the influence of PA and even though the Borgata is a prime resort there and MGM is jumping ship there is no guarantee that they can over come the declining revenue there. From the recent PR there was a revenue increase on Boulder Highway but Fremont street had another decrease and they have properties in both locals. Of course you are talking long term but the Fremont and AC problems should still be on the table of concern.

MPEL is in the hottest gaming market in world only rivaled by the upstart Singapore. I have had concerns on MPEL as how do they lose money when the Las Vegas Sands is making money across the street? Was somebody not playing with a full deck or was it just bad management. This was apparent in the old Vegas days when the skim was on. ( I did not say that ) They now have a new management team in place as Macau is still setting records and at last note MPEL picked up some market share as WYNN lost some share.

Personally I would put my money in LVS for the long term but if I had to pick between BYD and MPEL I would pick BYD for the safer long term play but MPEL has the higher potential. Until I see some progressive numbers out of MPEL that's the way I call the cards. Looking at the short term I would give MPEL the nod based on the big money that is flowing in.

*It should be noted that not too long ago that biggie John Paulson put his money on BYD, MGM and Harrahs. Even though he bought to high it shows where his long term vision is at.

BTW: I am playing some MPEL calls that are inching up towards a 3 bagger for me
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Thanks for the kind words trade2getrich

With gaming on fire in Macau last night, WYNN and LVS moving strong in a so/so market today. so/so= slightly better than a flat market...TTT. . .

There are a few fair to good gaming stocks in the US but as I said since early last year Macau is where its at and now of course Singapore is in the picture bringing in big revenue for LVS and Genting with no other competition. I do agree with the analysts on MGMs mid term future with a challenge on a Vegas recovery to overtake the supply that will be surfacing soon. MGM just don't have enough Macau market share at this point in the game to compensate as Atlantic City continues to slip. MPEL has been on fire lately and if they can finally prove them self through the Q3 then they should be considered a force. This leaves the two premier gaming stocks. With stronger Asian exposure the nod goes to LVS but WYNN is also a gaming stock to be positioned in. With that, pay special attention to the highlighted sentence at the bottom of the page


Las Vegas: Time to Invest?
http://finance.yahoo.com/video/compa...nvest-22390238



Macau casino stocks - WYNN, LVS, MPEL, MGM - are hot right now and warrant an immediate look.
Consider the following:
* Each of these stocks has a sizable presence overseas (Macau for WYNN, LVS, MPEL and MGM and Singapore for LVS). A sizable portion of their profits are not dollar denominated and are a hedge against dollar depreciation.
* WYNN and LVS recently hit 52 week highs following news that Macau’s September 2010 gambling revenue was up 40% year over year, rising to $1.9 BB from $1.39BB. As recently as October 4th, WYNN and LVS were trading at $90.51 & $36.44 respectively. Today - one week later - they have jumped to $95.84 and $37.56.
* MGM has filed an initial application for an IPO of its Macau operation. The stock has jumped from $11.31 to $13.11. During the same time period, MPEL - which is a pure Macau play - has jumped from $5.39 to $5.63.
* For the first nine months of this year, the YOY increase in Macau gambling revenue has been 60%.
* The Border Gate - which connects Macau to mainland China - is expanding its capacity to more than double its current size before the upcoming Chinese New Year. The expansion will allow it to increase the number of travelers to Macau from 200,000 daily to 500,000 daily.
http://seekingalpha.com/article/2294...g?source=yahoo

Instead of a expected pull back gaming is green again as the market is red. The charge is led by MGM and BYD which is a slight surprise but then they have been depressed for some time. LVS and WYNN both set new 52 Week highs today as expectations are still high

Since the last post MGM has a stock offering with over a 9% dilution factor and Kirkorian is selling a basket full of shares trying to dig out of debt. Even with a upgrade today MGM is spiraling down further. I have already posted my stronger thoughts in the MGM thread. With that the effect has not done much to LVS or WYNN as they are both holding strong in a down market from a overbought level. It has had some effect on BYD as it is a Vegas mixed bag for them and a failing AC. Of course MGM news has no effect on MPEL

Of course I don't know for sure what Paulsons entry prices were prior to August 3rd when I posted this but he can't be a happy camper this week when MGM and BYD got slammed as MGM's debt problems comes with dilution and bailing from Kerkorian. I have posted my concerns about MGM for months now as I turned on the green light for LVS and WYNN (actually I have had the green light on for LVS for over 18 months). I am sure Paulson will weather through this but if he should pull his stake expect that to kick these stocks further to the curb. If he had went with the two premier gaming stocks instead of despair he would be in tall cotton. Even if he had went with MPEL he would be up considerably as it is even beating the S&P by 51.8% YTD.

Performance against the S&P, Year to Date
LVS up by 128.9% and up 37.5% since that post on August 3rd
WYNN up by 55.6% and up 11.7% since August 3rd

*Sometimes it is good to follow big money and other times it's best to follow your own dd

I would tread carefully on this one as Harrah's is about $20bil in debt and no Asian exposure

Harrah's to Go Public With Stock Sale
http://online.wsj.com/article/SB1000...457076656.html

No, Harrah's will not have a impact on the other gaming stocks no more than they are doing now. They have been the #2 operator in Vegas for quite some time and have voiced that they would like a stake in Macau but no dice from the gov. This will be the second time they have went public and most likely its because or their financial woes. There was a rumor last year that they were going to buy out MPEL but of course nothing came of it.

Yesterdays meltdown brought some good buying opportunities as gaming is up strong in this market melt up led by MPEL, LVS, and WYNN. . .

Gaming is up today as the markets are down led today by PENN, BYD(?), LVS and MPEL. There were some upgrades last night on Sand China and Wynn Macau to give a spark to LVS, WYNN, and MPEL

To say that gaming has been trending up would be a extreme understatement as LVS, WYNN and MPEL have been on Fire as MGM has been lagging on their woes. Its all about Asian exposure and market share that has separated LVS from the pack with top share in Macau and its sweet spot in Singapore. Needless to say they are due for a pull back and when it happens I will reload my calls.

When they open the border gate which connects Macau to mainland China you can expect more fuel added to the fire

Both LVS and WYNN received upgrades today and are both up in a down market with LVS stealing the show, currently up 5.5% as MGM, MPEL and PENN are down slightly. BYD continues to add to its gains since Vegas has been showing a slight recovery even with their problems in AC.

Beating the S&P Year to Date
LVS 219%
WYNN 70%

Harrah's is going public again to try to reduce their debt. With that they will have a name change to Caesars Entertainment and will be listed under ticker symbol of CZR as its IPO has a price range of $15 to $17. I will keep a eye on them as they are a big entity but they hold some negative baggage in Atlantic City they need to dump in my opinion. They would love to get into Macau but that's a tight ship unless they could make a buyout on MPEL but that is doubtful even though the rumors flare up once in awhile. The following is listed by top price that either has holdings in Asia or Vegas with the bottom three being gaming support companies and I have added CZR for when it goes public.

The recession brought on the last may standing scenario and the Riv has crashed and burned. This may have been the last casino that received a questionable loan from the Teamsters



Riviera Holdings plan OK'd
Hotel parent's bankruptcy reorganization will replace debt with new loan
http://www.lvrj.com/business/riviera...106944418.html