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Macau Big Winners: Sands (LVS) vs. Wynn Resorts (WYNN) |
CanadianDaniel
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 Posted: Tue Sep 05, 2006 3:08 am Post subject: Macau Big Winners: Sands (LVS) vs. Wynn Resorts (WYNN) |
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Because of the rich potential of Macau as the world's foremost gambling destination, investors in Macau's first Vegas-style casino Sands are not stressing about this September's launch of the competitive Wynn Resorts casino. To the contrary, most analysts think that heavy demand for Macau gambling will spill over and benefit Sands and local Macao casinos.
Wynn is launching a 600-room hotel. However, many Macau high-rollers fly in and out for time-limited visits and in any event do not restrict themselves to one casino when other exciting gambling entertainment, dining and shopping experiences are available.
Sands Macao, the first western-operated casino in Asia, has completed the expansion of its casino floor. The total casino area now measures over 229,000 square feet, and the 740 tables now on the casino floor position the Sands Macao as the largest casino in the world. The expansion allows the Sands Macao to accommodate an additional 273 gaming tables -- a 58% increase -- and 365 slot machines. The total area of casino space now houses an unprecedented 740 table games and 1,254 slot machines -- all designed specifically for the Asian market.
Sands' stock (LVS on NYSE) is currently $69, 16% off its 52-week high of $79.80. On the other hand, Wynn (WYNN on Nasdaq) is $77, 4% off its high of $80.19. Given the spill-over demand that Wynn will create for Sands on Macau, Sands appears to me to be a superior investment.
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Macau Big Winners: Sands (LVS) vs. Wynn Resorts (WYNN) Replies |
HenryTo
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| Posted: Fri Feb 11, 2011 6:33 pm Post subject: |
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Morningstar on the latest with Wynn Resorts:
| Quote: | | We are placing Wynn Resorts WYNN under review as we test the sensitivity of our operating assumptions. Full-year sales came in ahead of our projections and rose 37% year over year to $4.2 billion, led by double-digit gains in Macau. As widely expected, the firm was able to leverage its fixed cost base to drive meaningful EBITDA margin gains over the course of the year. However, the magnitude of the operating increase was particularly impressive, 700 basis points year over year to 14.9% (double the 2009 level). Given stabilization in the Las Vegas market and, more important, better-than-expected growth trends in the Macau gaming business, the firm continues to track ahead of our long-term forecasts. We plan to further evaluate Wynn's ability to gain market share an d the potential growth in the Macau region, in particular, while we consider this expanding yet competitive operating environment. Additionally, we plan to further analyze the firm's unit growth and margin potential across its properties, which is a key driver of our valuation. |
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rffrydr
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rffrydr
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| Posted: Tue Jul 21, 2009 12:05 am Post subject: |
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Macao
Published: July 20 2009 09:26 | Last updated: July 20 2009 20:31
A little-noticed filing said it all. Hong Kong-listed Macau Success, a HK$1bn regional tour operator once known as Travel Success, is changing its name again. Call it Success Universe Group, please. Association with the world’s biggest gambling hub used to confer glamour. Today’s connotations – profligacy, over-stretch – are less desirable. Casino revenues in Macao, down 12 per cent in the first half, are heading for their first year-on-year decline. VIP baccarat, responsible for about two-thirds of takings, was down almost a fifth.
Against tough comparables – mainland China’s visa clampdown began last June – and a weak global backdrop, that may not seem disastrous. Annualised, those revenues would still top 2007. But concessionaires have bloated cost bases. City of Dreams, Melco Crown Entertainment’s rival to Las Vegas Sands’ Venetian on the Cotai strip, just bumped up table numbers by about 14 per cent, with more capacity expected by year-end. Indebted casino operators, many with covenants tied to earnings, resort to freebies and rebates to protect market share. City of Dreams’ average daily mass-market takings in its first month were slightly more than a third of the Venetian’s daily haul in the first quarter.
A sharp second-half recovery in traffic seems unlikely. Of the 7m Chinese who visited Macao on individual visit visas last year, about four-fifths came from export-led Guangdong, one of China’s hardest-hit provinces. And with Macanese unemployment contained by the surge in capacity, Beijing is unlikely to relax visa restrictions designed to limit visits from the mainland soon. At the margin, two new casinos in Singapore and one in Manila won’t help. Four of the big six operators should make a loss this year. Who said the house always wins?
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rffrydr
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rffrydr
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rffrydr
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| Posted: Wed Feb 13, 2008 3:00 pm Post subject: |
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Some more tumbling:
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Like Fuller, KeyBanc Capital Markets' Dennis Forst said Wynn may face a double barrel of issues with pressures on Las Vegas and Macau.
"While we are thoroughly impressed with 2007 results, we remain wary of the domestic economic environment and issues regarding governmental restrictions and competition in Macau," he wrote in a note.
Forst reiterated a "Hold" rating. |
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080213&id=8186825
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HenryTo
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rffrydr
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rffrydr
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HenryTo
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rffrydr
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| Posted: Fri Sep 07, 2007 5:11 am Post subject: |
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Wynn's Macao tables more turnover than total Wynn Las Vegas hotel.
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HenryTo
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