Morgan Stanley changes opinion on Sands ChinaAugust 11, 2014 7:05 PM by Ray Poirier
Analysts look to two different gambling segments when considering the impact of a slowdown in Macau. The first is the obvious VIP market that involves the high-rollers who are guided to Macau from mainland China by licensed tour groups. The second has been dubbed the “mass market” crowd.
Obviously, low numbers in June, said analysts, were caused by fewer VIP groups because so many high-stakes gamblers preferred to stay in China during the World Soccer Cup.
But, also affected, was the mass market, which also felt the impact of fewer numbers.
Because of this, Morgan Stanley analysts, who have for months touted Las Vegas Sands Corp. (LVS) as a Macau investment, have changed their opinions. They now say Sands China, a subsidiary of Las Vegas Sands that operate the most casinos and hotels in Macau, is “no longer a best idea.”
“The recent slowdown in mass segment,” they said in a recent note, “rise in staff costs due to labor shortage that will continue for some time, stalled construction of Parisian (next Cotai project) and general investor sentiment may keep stock price in a tight range or lower in the very near term.”
Shares in LVS plummeted in value last week.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at RayPoirier@GamingToday.com.
The early signs say in plain numbers that the Plainridge Park race track and slot casino is a big winner, both for the state of Massachusetts and Penn National Gaming which opened it about 10 days ago.
Atlanta may be the next major U.S. city to open the door to so-called Las Vegas-style gaming resorts. MGM has confirmed that it is taking a serious look at the possible opportunity there.
Boyd Gaming plans to spend $45 million adding another hotel tower and additional amenities at its Delta Downs racetrack and casino 120 miles east of Houston in Vinton, La.
Atlantic City’s troubled casino industry is hungry for new ideas and the ideas are coming. The problem is that some of them do not appear to make a lot of sense given the fact that existing casinos have been losing business.
Mark Frissora has formally checked in at Caesars Entertainment Corporation where he assumed his duties as president and chief executive officer. Now that he has all those titles, what is he going to do with the job?