Casinos mixed on June Macau results

Jul 1, 2009 9:38 PM
Staff & Wire Reports |

Shares of casino operators with Macau properties were mixed Wednesday on disappointing monthly gaming revenue results.

June gaming revenue fell 17 percent compared with a year ago, according to media reports. It was also a bigger decline than the 10.2 percent drop-off in May.

JPMorgan's Joseph Greff said in a client note that the Chinese enclave's gaming revenue results continue to be hurt by soft economic conditions, a tighter credit environment and travel restrictions.

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Greff said he still likes Las Vegas Sands Corp. (LVS), partly on its stabilizing Macau properties and the upcoming opening of the Marina Bay Sands in Singapore next year. He continues to stay on the sidelines for Wynn Resorts Ltd. (WYNN) and Melco Crown Entertainment Ltd. (MPEL), saying there will likely be better entry points.

Janet Brashear of Bernstein Research said the lackluster June results stem from lower Macau visitation that was prompted by swine flu fears. She kept a "Market Perform" rating for Wynn, an "Outperform" rating for Las Vegas Sands and an "Underperform" rating for MGM MIRAGE (MGM).

Shares of Las Vegas Sands dipped 4 cents to $7.82, while Wynn's stock added 54 cents to $35.84 in morning trading. MGM MIRAGE's stock shed 2 cents to $6.37. Shares of Melco Crown Entertainment Ltd., a developer and owner of Macau casino resorts, gained 13 cents to $4.63.

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