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.
British bookmakers were wrong with their expectation that UK would remain in the European Common Market. Gambling firms assessed the direction of wagering on the issue and placed a 90 percent chance on remaining in the European Union.
In a unanimous vote, the Nevada Gaming Commission Thursday approved USFantasy to provide daily fantasy sports (DFS) contests to all major casinos in Nevada.
Bruce Moshman, the longtime partner of entertainment legend Monti Rock III passed away this week at the age of 82 in a Las Vegas hospice. Moshman had been in declining health for several years.
The Station Casinos’ sports book oddsmakers are celebrating today’s announcement of an NHL expansion franchise arriving in Las Vegas for the 2017-2018 season.
Winnings during May at Louisiana casinos fell 12.6 percent to $207.4 million compared to the same year earlier period. Video poker revenue was also down in May.
- My version of Songbird a lot more lively
- Trying to fit entity betting to MLB
- Sixers eyeing Big Ben Simmons
- GamingToday Play Free Video Poker
- No guarantees in wide open AFC South
- Thurman-Porter on CBS is like a free PPV
- Cavs take public with them to NBA Finals glory
- NASCAR Sonoma race made for a Busch