HOT Stories more

New agreement will allow casinos to own slots

Article

Morgan Stanley changes opinion on Sands China

August 11, 2014 7:05 PM by Ray Poirier

Morgan Stanley: Sands China 'no longer best idea' 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.

Like GamingToday on Facebook GamingToday on Facebook      and        Follow GamingToday on Twitter GamingToday on Twitter

GT Football Special

GamingToday Race and Sports Futures

           Westgate Superbook  Stratosphere Sports Book  

                Wynn Sports Book  CG Technology

top stories

Wynn Resorts is redesigning its proposed $1.6 billion resort casino in Everett. The updates were part of Wynn’s first status report to state regulators since besting Mohegan Sun for the lucrative Boston-area casino license last month.

Bob Christ’s breakdown of Pro Football Week 8 | Teams such as the Buccaneers that lose by 30-plus points the week before a bye, have come back strong their next game, going 8-0-1 ATS the past six seasons.

NCAA Football Betting Primer | The story of two teams heading in opposite directions as the Buckeyes have won four straight contests by the staggering average of 38.7 points per game, while the Nittany Lions have dropped their last two outings.

Trump Entertainment Resorts is dropping its threat to close Atlantic City’s Taj Mahal casino on Nov. 13. The company said it still cannot guarantee the Taj Mahal won’t close by the end of the year, but said it will remain open throughout November.

Bob Christ’s Thursday NFL Football Breakdown | When Denver plays host to San Diego on Thursday night in Week 8, Denver QB Peyton Manning will be going against one of the few teams that packs kryptonite when it faces the record-setting quarterback.

GamingToday subscription