 |
| Macau |
This year, we here at LTN are upping our forecast of Macau’s “take” to 30% growth over last year, and perhaps as the year unfolds we will up-grade that number again.
In March, Macau casinos took in more than 20B Macanese Patacas, or US$2.5B. That is the 1st time the gambling capital passed that mark, and it is a rise of 48% over last year.
January gaming grew 33.2%, and February rose 47.7%, indicting the momentum is getting stronger.
The news has sent Las Vegas Sands (NYSE:LVS) and Wynn Resorts (Nasdaq:WYNN) higher Friday by 4% and 6%, respectively. But the only pure Macau play, Melco Crown (Nasdaq:MPEL), is only just even with the gains of MGM Resorts (NYSE:MGM), which only has a small presence in Macau.
The gaming comparisons in Macau get tougher as the year goes on, but gaming “take” for March was already 6.4% higher than Y 2010’s best month.
This is good news for at least one gaming company that’s had a choppy ride lately. Las Vegas Sands players shrugged off the Company’s legal troubles after CEO and major shareholder Sheldon Adelson said, “When the smoke clears, I am 1,000% positive that there will not be any fire below it.”
Mr. Adelson words did ease a bit of concern for the market and LVS’ shareholders.
Considering the growth that Macau has show us year after year, I see no reason to change our POV, and remain Bullish on casino operators there.
Sources: http://www.livetradingnews.com
