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.
Fantasy Force Daniel Cormier defends his UFC ‘Jon Jones’ Light Heavyweight Championship against Alexander Gustafsson tonight on PPV.
The PokerStars and Full Tilt poker brands owned by Amaya Inc., have been approved to become part of the online gaming business in New Jersey. How much momentum this may add to the gaming business in Atlantic City remains to be seen.
SATURDAY FREE BOOKIES BATTLE SELECTION | Check out the free Bookies Battle selection of the day. Today's selection is from Dawn Bailey at the Bellagio.
Top NFL Vegas betting trends | Cowboys: Brandon Weeden has lost 10 straight starts (both straight-up and ATS); 17-3 ATS when underdogs by more than a field goal.
The offensive machine that is the Toronto Blue Jays looks to continue their strong regular season when they take on the Tampa Bay Rays. The pitching matchup pits Marco Estrada against Chris Archer in a battle of hard throwing right-handers.