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 four major professional sports leagues and the NCAA filed papers to stop New Jersey’s plan to allow legal sports betting beginning this weekend, when gamblers could become the first in the nation outside Nevada to wager on single games.
The Florida State Seminoles dropped from 5/1 to win this season’s college football championship to 7/1 Monday morning at the Westgate Las Vegas SuperBook. Despite a 31-27 come-from-behind victory over the fifth-ranked Notre Dame.
Pokin' Around | One final bit of unfinished business from the recent Global Gaming Expo involves a blackjack table game called Lucky 13s.
A well-known Chicago anti-crime fighter has warned that if Illinois doesn’t move quickly to eliminate the unregulated so-called “Sweepstakes Cafes,” Illinois could become known as “the sucker state.”
A Florida developer who lost a bankruptcy court auction for the former Revel Casino Hotel in Atlantic City is now challenging the decision.
- Follow GamingToday on Twitter
- GamingToday Casino Games and Poker
- GamingToday Play Free Video Poker
- GamingToday's Bookies Battle the Point Spreads
- Odds put Gordon at goal for NASCAR championship
- Islanders stirring up betting interest in NHL
- Stanford's defense could crush Oregon State
- GamingToday's Beat the Big Dog football contest
- Like GamingToday on Facebook