Casino stocks were spiking higher in yesterday’s session on news out of Macau that they would be loosening the visa rules now allowing guests from the mainland of China to now stay a full seven days from the original five. In addition, the frequent visitors are now permitted to visit twice in a 30 day period from an original restriction of only twice in 60 days.
Las Vegas Sands Corp. (NYSE: LVS)
Shares of Las Vegas Sands Corp surged higher in Tuesday’s session on high relative volume, closing at $52.56; up by $2.42 or 4.83%.
Macau gaming had reported a 36% drop in gaming revenue in June. Although ugly, the number is still better than expected. This is continued repercussions from the anti corruption campaign by the Chinese government.
Analysts at Credit Suisse noted:
We highlighted in our earlier piece that Macau was hurt by the slower visitation in Hong Kong. We believe the impact is gradually fading. In fact, recent data shows that the Chinese visitation also improved 7.2% year-over-year during 1-24 May in Hong Kong,” and “As the mainland Chinese visitation trend between Hong Kong and Macau has strong correlation, we believe a better trend in Hong Kong should bode well for Macau.”
Las Vegas Sands Corp. (LVSC), incorporated on August 9, 2004, is a developer of destination properties (integrated resorts) that offers accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company owns and operates integrated resorts in Asia and the United States. Reuters
Melco Crown Entertainment (NASDAQ: MPEL)
Just recently, MPEL revealed the new “Golden Reel Ferris Wheel.” The wheel stretches 130 meters located in Cotai, Macau. The Wheel is positioned at dead center between the resort’s “Art Deco meets Gotham City” hotels, providing tourists an exciting experience for the resort’s “Studio City.” The $3.2B “Studio City” is slated to open in Macau in 2016.
Lawrence Ho, Chief Executive Officer of MPEL, noted:
“As a new iconic landmark in Macau, the Golden Reel is a totally unique entertainment offering to Asia, and indeed the world, and we continue to deliver on our commitment to expanding the non-gaming leisure and entertainment offerings available in Macau as a continuing strategy in supporting its evolution into a highly-diversified and world-leading leisure and tourism destination.”
Melco Crown Entertainment Limited, incorporated on December 17, 2004, is a developer, owner and operator of casino gaming and entertainment resort facilities. The Company is principally engaged in the gaming and hospitality business in Asia and its principal operating and developmental activities occur in two geographic areas: Macau and the Philippines. Reuters
Wynn Resorts Ltd. (NASDAQ: WYNN)
Just this week, lawsuits have threatened the Macau gaming companies brought upon by Steve Jacobs, a former CEO of the Macau gaming subsidiary, Las Vegas Sands. The lawsuit is alleging “numerous illegal activities that include collaborating with organized crime and paying bribes to officials.”
Wynn Resorts surely does not need any more headaches as it is also dealing with very controversial internal issues between Steve Wynn and his ex-wife Elaine – now twice divorced. The fight is over stock ownership in the company. In short, the struggle is Elaine’s ability to sell her portion of stock in the company and claims she can do so without Mr. Wynn’s permission. However, Mr. Wynn claims there is a stockholder agreement which prohibits her from a sale and Elaine claims the agreements is no longer valid. In result, Elaine has filed suit in pursuit of an order allowing her to sell her stock which could result in a severe downturn for the company’s stock price.
Wynn Resorts, Limited, incorporated on June 3, 2002, is a developer, owner and operator of destination casino resorts which integrate accommodations and amenities, including fine dining, retail offerings, distinctive entertainment and convention facilities. The Company owns 72% of Wynn Macau, Limited, which operates an integrated resort in the Macau Special Administrative Region of the People’s Republic of China (Macau). Reuters