Las Vegas Sands today announced the redevelopment of Sands Cotai Central into a new European themed resort called The Londoner Macao.
The $1.1 billion project will rebrand Sands Cotai Central into a new destination integrated resort. The Londoner "will feature dynamic new attractions and features from London including some of London's most recognizable landmarks, an expanded and reimagined retail mall and 350 luxurious new suites, the St Regis Tower Suites."
The high level of investment on the Cotai Strip shows the strength of the Macanese market, which was down in previous years but has since been making a strong recovery.
Unfortunately it doesn't look like Sands has any intention of building anything new in Las Vegas anytime soon other than their announced music arena.
I would like to see them do something with the stalled St. Regis building on the Las Vegas Strip which is currently unfinished, but it seems they are content with leaving it as-is for now.
Showing posts with label Las Vegas Sands. Show all posts
Showing posts with label Las Vegas Sands. Show all posts
Wednesday, October 25, 2017
Tuesday, January 03, 2017
2016 Las Vegas Stock Recap
With the calendar now showing January 2017, let's take a look back and see how Las Vegas stocks did in 2016.
The big three Las Vegas stocks - MGM Resorts International, Wynn Resorts, and Las Vegas Sands all had good years increasing by more than 20% each. The companies rode the wave of a recovering Macau market combined with strong non-gaming Las Vegas metrics.
In Macau Wynn Palace opened on the Cotai Strip in August. Sands opened The Parisian a few weeks later in in September. Meanwhile in the United States MGM National Harbor near Washington DC was opened in December to capacity crowds.
Caesars Entertainment stock finished the year up just over 7%. Caesars is still involved in seemingly never-ending bankruptcy litigation, but the stock could have some speculation value if they are able to escape bankruptcy with most of the company still in-tact.
Regional operators Boyd Gaming and Penn National didn't fare as well as their international counterparts. Boyd was up a slight 1.5% as they integrated their new Aliante and Cannery acquisitions. Penn was down 13.9% perhaps negatively affected by the anticipated opening of MGM National Harbor stealing business from their Charles Town property.
2016 Las Vegas stock results: (not including dividends)
The big three Las Vegas stocks - MGM Resorts International, Wynn Resorts, and Las Vegas Sands all had good years increasing by more than 20% each. The companies rode the wave of a recovering Macau market combined with strong non-gaming Las Vegas metrics.
In Macau Wynn Palace opened on the Cotai Strip in August. Sands opened The Parisian a few weeks later in in September. Meanwhile in the United States MGM National Harbor near Washington DC was opened in December to capacity crowds.
Caesars Entertainment stock finished the year up just over 7%. Caesars is still involved in seemingly never-ending bankruptcy litigation, but the stock could have some speculation value if they are able to escape bankruptcy with most of the company still in-tact.
Regional operators Boyd Gaming and Penn National didn't fare as well as their international counterparts. Boyd was up a slight 1.5% as they integrated their new Aliante and Cannery acquisitions. Penn was down 13.9% perhaps negatively affected by the anticipated opening of MGM National Harbor stealing business from their Charles Town property.
2016 Las Vegas stock results: (not including dividends)
| Company | Symbol | Start | End | Change |
| MGM | MGM | 22.72 | 28.83 | +26.9% |
| Wynn | WYNN | 69.19 | 86.51 | +25% |
| Sands | LVS | 43.84 | 53.41 | +21.8% |
| Caesars | CZR | 7.89 | 8.50 | +7.7% |
| Boyd | BYD | 19.87 | 20.17 | +1.5% |
| Penn | PENN | 16.02 | 13.79 | -13.9% |
Monday, July 25, 2016
Sands Arena Opening Late 2018 or Early 2019
Las Vegas Sands reported their second quarter 2016 earnings earlier this afternoon.
As usual most of the earnings conference call centered on the company's primary casino operations in Macau and Singapore, but there was one tidbit about Las Vegas:
The Sands music arena which will be built with Madison Square Garden will begin construction in early 2017.
The arena located behind Venetian and Palazzo will take 18 to 24 months to build, which means the opening date will be Late 2018 or early 2019.
I suppose that timeline is perfectly reasonable for a new arena to be constructed, but 2019 seems like a long way off. I was looking forward to the Sands arena and T-Mobile Arena squaring off and competing for top musical acts, but I guess we'll have to wait a few years.
As usual most of the earnings conference call centered on the company's primary casino operations in Macau and Singapore, but there was one tidbit about Las Vegas:
The Sands music arena which will be built with Madison Square Garden will begin construction in early 2017.
The arena located behind Venetian and Palazzo will take 18 to 24 months to build, which means the opening date will be Late 2018 or early 2019.
I suppose that timeline is perfectly reasonable for a new arena to be constructed, but 2019 seems like a long way off. I was looking forward to the Sands arena and T-Mobile Arena squaring off and competing for top musical acts, but I guess we'll have to wait a few years.
Wednesday, May 25, 2016
Sands Arena behind Venetian and Palazzo Announced
Las Vegas Sands and The Madison Square Garden Company have announced plans to build a new 17,500 seat arena behind Sands properties The Venetian and Palazzo.
The partnership was announced in a press release earlier today and will also involve Azoff MSG Entertainment, Live Nation, and Oak View Group.
At first glance this seems like a direct competitor to MGM's new T-Mobile Arena, however this venue will be slightly different as it will be designed for music concerts first and foremost. The arena won't be hosting an NBA or NHL team, but UFC and boxing might be a possibility.
The first question is whether Las Vegas really needs another arena like this. Along with the new T-Mobile Arena many other large music venues scatter the Strip including MGM Grand Garden Arena, Mandalay Bay Events Center, Axis at Planet Hollywood, The Colosseum at Caesars, and the upcoming new Monte Carlo Theater.
I'm guessing Sands and MSG have done their homework and determined the demand will be there. MSG has apparently had great success in the Los Angeles area by remodeling the Forum to a similar music centered arena.
It will also be interesting to see what kind of amenities will surround the arena. Sands will be building a walkway back, but it's not really clear if there will be any dining and shopping similar to The Linq Promenade and The Park.
Another angle is the arena's close proximity to the upcoming Wynn Paradise Park development. I suppose there could be some synergies if Wynn and Sands were willing to work together to create some kind of pedestrian access between the two.
The partnership was announced in a press release earlier today and will also involve Azoff MSG Entertainment, Live Nation, and Oak View Group.
At first glance this seems like a direct competitor to MGM's new T-Mobile Arena, however this venue will be slightly different as it will be designed for music concerts first and foremost. The arena won't be hosting an NBA or NHL team, but UFC and boxing might be a possibility.
The first question is whether Las Vegas really needs another arena like this. Along with the new T-Mobile Arena many other large music venues scatter the Strip including MGM Grand Garden Arena, Mandalay Bay Events Center, Axis at Planet Hollywood, The Colosseum at Caesars, and the upcoming new Monte Carlo Theater.
I'm guessing Sands and MSG have done their homework and determined the demand will be there. MSG has apparently had great success in the Los Angeles area by remodeling the Forum to a similar music centered arena.
It will also be interesting to see what kind of amenities will surround the arena. Sands will be building a walkway back, but it's not really clear if there will be any dining and shopping similar to The Linq Promenade and The Park.
Another angle is the arena's close proximity to the upcoming Wynn Paradise Park development. I suppose there could be some synergies if Wynn and Sands were willing to work together to create some kind of pedestrian access between the two.
Wednesday, January 27, 2016
Las Vegas Sands Fourth Quarter 2015 Results
Las Vegas Sands reported fourth quarter and full year 2015 earnings results earlier today. The weak Asia market continued to weigh on results, with full year consolidated casino revenue down 25%.
In Las Vegas at the company's Venetian and Palazzo properties gaming revenue was flat in the fourth quarter. Non-gaming on the other hand was very strong again with rooms up 25% and food and beverage up 20%.
Sands reiterated the decision to raise the quarterly dividend by 10.8% from 65 to 72 cents per share starting in 2016. I said it before, but it's impressive the company is able to raise the dividend in the face of weaker Macau gaming revenue.
On the earnings conference call CEO Sheldon Adelson talked about the prospects of expanding to other markets, mentioning Northern New Jersey, Atlanta, Texas, Brazil, Japan, Vietnam, and Thailand among others as possibilities.
There was also some interesting chatter on the conference call that Wynn Palace might get delayed again, although this is obviously speculation. We'll have to keep an eye on the upcoming Wynn Resorts earnings results for more detail about that.
In Las Vegas at the company's Venetian and Palazzo properties gaming revenue was flat in the fourth quarter. Non-gaming on the other hand was very strong again with rooms up 25% and food and beverage up 20%.
Sands reiterated the decision to raise the quarterly dividend by 10.8% from 65 to 72 cents per share starting in 2016. I said it before, but it's impressive the company is able to raise the dividend in the face of weaker Macau gaming revenue.
On the earnings conference call CEO Sheldon Adelson talked about the prospects of expanding to other markets, mentioning Northern New Jersey, Atlanta, Texas, Brazil, Japan, Vietnam, and Thailand among others as possibilities.
There was also some interesting chatter on the conference call that Wynn Palace might get delayed again, although this is obviously speculation. We'll have to keep an eye on the upcoming Wynn Resorts earnings results for more detail about that.
Friday, December 18, 2015
Sheldon Adelson buys Review-Journal
After a few days of intrigue surrounding the mysterious purchase of the Las Vegas Review-Journal, the buyer was finally revealed to be Sheldon Adelson. The Las Vegas Sands (parent company of Venetian and Palazzo) owner and CEO paid $140 million for the newspaper.
Adelson is known for his political views, so the newspaper's purchase is likely more about influence than profits (if there are any). It's somewhat surprising that Adelson would choose to buy a Las Vegas newspaper though. Most of his company's profits come from overseas.
The RJ likely already aligned with Adelsons political views. It's known to lean a little to the right, causing Democrat Harry Reid to openly bash the newspaper.
Some people are speculating the $140 million purchase price was more than the newspaper is worth. Sheldon Adelson likely doesn't care though. He's one of the richest people in the world - his Las Vegas Sands shares are worth almost $3 billion.
Adelson is known for his political views, so the newspaper's purchase is likely more about influence than profits (if there are any). It's somewhat surprising that Adelson would choose to buy a Las Vegas newspaper though. Most of his company's profits come from overseas.
The RJ likely already aligned with Adelsons political views. It's known to lean a little to the right, causing Democrat Harry Reid to openly bash the newspaper.
Some people are speculating the $140 million purchase price was more than the newspaper is worth. Sheldon Adelson likely doesn't care though. He's one of the richest people in the world - his Las Vegas Sands shares are worth almost $3 billion.
Wednesday, December 02, 2015
Sheldon Adelson Republican Debate
The next Republican debate will take place on December 15, 2015 at the Venetian.
This will be the second debate of the year held in Las Vegas. One of the Democratic debates took place at Wynn Las Vegas in October.
Las Vegas will also host the final Presidential debate next year at Thomas and Mack Center on the UNLV campus.
Aside from these debates being held in Las Vegas, it's also been in the news lately that Las Vegas Sands CEO and Venetian owner Sheldon Adelson will be deciding soon which Republican candidate to support.
Adelson is famous for his gigantic campaign contributions, so it's being seen as a major advantage for the candidate who manages to gain his support.
This will be the second debate of the year held in Las Vegas. One of the Democratic debates took place at Wynn Las Vegas in October.
Las Vegas will also host the final Presidential debate next year at Thomas and Mack Center on the UNLV campus.
Aside from these debates being held in Las Vegas, it's also been in the news lately that Las Vegas Sands CEO and Venetian owner Sheldon Adelson will be deciding soon which Republican candidate to support.
Adelson is famous for his gigantic campaign contributions, so it's being seen as a major advantage for the candidate who manages to gain his support.
Tuesday, December 01, 2015
November 2015 Las Vegas Stock Recap
With the calendar now showing December 2015, let's take a look back and see how Las Vegas stocks did in the month of November.
After a blazing hot October for Las Vegas stocks, they came back down to earth a little bit in November.
Caesars Entertainment was the only stock finishing up in November, inching up a little over 5% after soaring over 36% in October.
MGM Resorts International and Boyd Gaming were relatively flat in October, both declining slightly.
Wynn Resorts and Las Vegas Sands both were both down a little over 10% in November after both had a strong October. Some issues in Macau continue to weigh on these two operators.
Penn National was down almost 11% in November, after having the weakest performance of all the Las Vegas stocks in October. I'm guessing their master lease accounting issues could have hurt their stock price recently.
After a blazing hot October for Las Vegas stocks, they came back down to earth a little bit in November.
Caesars Entertainment was the only stock finishing up in November, inching up a little over 5% after soaring over 36% in October.
MGM Resorts International and Boyd Gaming were relatively flat in October, both declining slightly.
Wynn Resorts and Las Vegas Sands both were both down a little over 10% in November after both had a strong October. Some issues in Macau continue to weigh on these two operators.
Penn National was down almost 11% in November, after having the weakest performance of all the Las Vegas stocks in October. I'm guessing their master lease accounting issues could have hurt their stock price recently.
| Company | Symbol | Start | End | Change |
| Caesars | CZR | 8.05 | 8.47 | +5.22% |
| MGM | MGM | 23.19 | 22.74 | -1.94% |
| Boyd | BYD | 19.99 | 19.59 | -2% |
| Wynn | WYNN | 69.95 | 62.77 | -10.26% |
| Penn | PENN | 17.86 | 15.95 | -10.69% |
| Sands | LVS | 49.51 | 44.06 | -11% |
Wednesday, November 11, 2015
Fontainebleau For Sale - Who Will Buy?
The Wall Street Journal reported today that Carl Icahn is looking to sell the Fontainebleau. The property will be listed by CBRE for $650 million.
I immediately starting thinking about who might be a candidate to buy and finish the stalled Fontainebleau project. I'm going to spend the rest of this blog post speculating about which companies might be in the mix.
MGM Resorts International and Caesars Entertainment are the two largest Las Vegas hotel/casino companies but neither of them are really looking to expand in Vegas at the moment. Plus MGM will be completing a REIT conversion soon, and Caesars is going through a partial bankruptcy. I don't see either of these giants buying Fontainebleau.
Wynn Resorts boss Steve Wynn has long said he doesn't want to build in Las Vegas again. His frustration with the Macau government and endless headaches getting his Boston project off the ground might have him singing a different tune though. The rub: Wynn likes to build from scratch and the Fontainebleau structure might not be a blank enough slate for architect DeRuyter Butler and designer Roger Thomas to work their magic.
Like Wynn, Las Vegas Sands and Sheldon Adelson have shown a lack of interest in building anything new in Vegas. I actually think the Fontainebleau would be a great fit though. LVS has deep pockets so finishing the resort wouldn't be a problem, and the location near the planned convention center expansion would fit right in with their convention heavy business model. The best part: They could call the property Sands Hotel and Casino resurrecting an iconic Las Vegas brand.
Speaking of iconic properties: Boyd Gaming has been looking to get back on the Strip ever since they demolished The Stardust and failed to replace it with Echelon Place, later selling the property. While I would be in favor of Boyd buying Fontainebleau and renaming it The Stardust (or Borgata Las Vegas perhaps?) it seems unlikely they would undertake such a large project so shortly after abandoning Echelon.
Penn National was seriously considering purchasing Fontainebleau before ultimately losing out to Carl Icahn. Since then they have entered the Las Vegas market with purchases of M Resort and later Tropicana. If Penn was unwilling to spend $150 million to buy Fontainebleau in 2010 I'm guessing they don't want to spend $650 million in 2015.
Treasure Island owner Phil Ruffin was in the news earlier this week as it was reported he made a recent $1.3 billion failed bid to buy The Mirage. If Ruffin has that much cash to spend could he possibly want to buy the Fontainebleau? It seems like a real possibility to me.
Other regional operators like Eldorado Resorts, Golden Entertainment, Full House Resorts, and Pinnacle Entertainment are likely eager to get into the Las Vegas market but probably don't have the money to make a deal like Fontainebleau happen. Could one of these companies partner up with a rich benefactor like Ruffin to get it done?
Lastly and perhaps most likely to buy Fontainebleau are private equity real estate companies. Cosmopolitan parent company Blackstone might be a possibility if they are looking to expand their casino holdings. Once rumored Mirage buyer Starwood Capital might also be looking to buy.
I immediately starting thinking about who might be a candidate to buy and finish the stalled Fontainebleau project. I'm going to spend the rest of this blog post speculating about which companies might be in the mix.
MGM Resorts International and Caesars Entertainment are the two largest Las Vegas hotel/casino companies but neither of them are really looking to expand in Vegas at the moment. Plus MGM will be completing a REIT conversion soon, and Caesars is going through a partial bankruptcy. I don't see either of these giants buying Fontainebleau.
Wynn Resorts boss Steve Wynn has long said he doesn't want to build in Las Vegas again. His frustration with the Macau government and endless headaches getting his Boston project off the ground might have him singing a different tune though. The rub: Wynn likes to build from scratch and the Fontainebleau structure might not be a blank enough slate for architect DeRuyter Butler and designer Roger Thomas to work their magic.
Like Wynn, Las Vegas Sands and Sheldon Adelson have shown a lack of interest in building anything new in Vegas. I actually think the Fontainebleau would be a great fit though. LVS has deep pockets so finishing the resort wouldn't be a problem, and the location near the planned convention center expansion would fit right in with their convention heavy business model. The best part: They could call the property Sands Hotel and Casino resurrecting an iconic Las Vegas brand.
Speaking of iconic properties: Boyd Gaming has been looking to get back on the Strip ever since they demolished The Stardust and failed to replace it with Echelon Place, later selling the property. While I would be in favor of Boyd buying Fontainebleau and renaming it The Stardust (or Borgata Las Vegas perhaps?) it seems unlikely they would undertake such a large project so shortly after abandoning Echelon.
Penn National was seriously considering purchasing Fontainebleau before ultimately losing out to Carl Icahn. Since then they have entered the Las Vegas market with purchases of M Resort and later Tropicana. If Penn was unwilling to spend $150 million to buy Fontainebleau in 2010 I'm guessing they don't want to spend $650 million in 2015.
Treasure Island owner Phil Ruffin was in the news earlier this week as it was reported he made a recent $1.3 billion failed bid to buy The Mirage. If Ruffin has that much cash to spend could he possibly want to buy the Fontainebleau? It seems like a real possibility to me.
Other regional operators like Eldorado Resorts, Golden Entertainment, Full House Resorts, and Pinnacle Entertainment are likely eager to get into the Las Vegas market but probably don't have the money to make a deal like Fontainebleau happen. Could one of these companies partner up with a rich benefactor like Ruffin to get it done?
Lastly and perhaps most likely to buy Fontainebleau are private equity real estate companies. Cosmopolitan parent company Blackstone might be a possibility if they are looking to expand their casino holdings. Once rumored Mirage buyer Starwood Capital might also be looking to buy.
Sunday, November 01, 2015
October 2015 Las Vegas Stock Recap
With the calendar now showing November 2015, let's take a look back and see how Las Vegas stocks did in the month of October.
October turned out to be an amazing month for Las Vegas stock returns with every stock I track finishing green, and 5 out of the 6 finishing up by more than 20%.
Caesars Entertainment has been on a wild bankruptcy fueled roller coaster ride. After soaring an incredible 83.3% in August they came crashing back down to earth in September falling 38.32% only to turn it around again in October jumping up 36.67%.
Wynn Resorts and Las Vegas Sands both were up big in October after declining significantly in September. While Steve Wynn was angry at the Macau government during Wynn's earnings call, Sheldon Aldelson was nothing but respectful.
MGM Resorts International had a 25% gain in October highlighted by the news that they are creating a REIT called MGM Growth Properties.
Boyd Gaming rode the downtown Las Vegas success wave with their stock increasing almost 22% in October.
Penn National was "only" up 6.4% in October. I'm guessing their limited exposure to Las Vegas compared to the other stocks kept them form having the same explosive October results.
October turned out to be an amazing month for Las Vegas stock returns with every stock I track finishing green, and 5 out of the 6 finishing up by more than 20%.
Caesars Entertainment has been on a wild bankruptcy fueled roller coaster ride. After soaring an incredible 83.3% in August they came crashing back down to earth in September falling 38.32% only to turn it around again in October jumping up 36.67%.
Wynn Resorts and Las Vegas Sands both were up big in October after declining significantly in September. While Steve Wynn was angry at the Macau government during Wynn's earnings call, Sheldon Aldelson was nothing but respectful.
MGM Resorts International had a 25% gain in October highlighted by the news that they are creating a REIT called MGM Growth Properties.
Boyd Gaming rode the downtown Las Vegas success wave with their stock increasing almost 22% in October.
Penn National was "only" up 6.4% in October. I'm guessing their limited exposure to Las Vegas compared to the other stocks kept them form having the same explosive October results.
| Company | Symbol | Start | End | Change |
| Caesars | CZR | 5.89 | 8.05 | +36.67% |
| Wynn | WYNN | 53.12 | 69.95 | +31.68% |
| Sands | LVS | 37.95 | 49.51 | +30.46% |
| MGM | MGM | 18.45 | 23.19 | +25.69% |
| Boyd | BYD | 16.30 | 19.99 | +21.96% |
| Penn | PENN | 16.78 | 17.86 | +6.44% |
Tuesday, October 27, 2015
Gaming Roundup - Studio City Macau Opens
Studio City in Macau has opened. The 3 plus billion dollar hotel designed in part to bring more non-gaming amenities to Macau features a batman ride and a figure eight ferris wheel in the middle of the building.
Studio City should be a good barometer of how non-gaming attractions do in the Macau market, especially since the government only granted them 250 tables.
Next door to Studio City on the Cotai Strip is The Parisian. The 2.7 billion dollar Las Vegas Sands owned hotel and casino will open in late 2016 or early 2017. It was originally planned for a spring 2016 opening so it's being pushed back a bit.
Back here stateside Caesars Entertainment is halfheartedly trying to sell their bankrupt CEOC unit, but it appears there aren't any bidders likely because Total Rewards would be excluded from the transaction.
Boyd Gaming, Penn National, and Eldorado Resorts all reported earnings within the past few days. All three locals operators seem to be doing well growing EBITDA, but I like net income better which seems to be hard to come by.
Studio City should be a good barometer of how non-gaming attractions do in the Macau market, especially since the government only granted them 250 tables.
Next door to Studio City on the Cotai Strip is The Parisian. The 2.7 billion dollar Las Vegas Sands owned hotel and casino will open in late 2016 or early 2017. It was originally planned for a spring 2016 opening so it's being pushed back a bit.
Back here stateside Caesars Entertainment is halfheartedly trying to sell their bankrupt CEOC unit, but it appears there aren't any bidders likely because Total Rewards would be excluded from the transaction.
Boyd Gaming, Penn National, and Eldorado Resorts all reported earnings within the past few days. All three locals operators seem to be doing well growing EBITDA, but I like net income better which seems to be hard to come by.
Wednesday, October 21, 2015
Las Vegas Sands Reports Third Quarter 2015 Results
Las Vegas Sands reported third quarter 2015 earnings results earlier today. The weak Macau market caused gaming revenue to decline significantly, but that softness was offset by a strong performance at Marina Bay Sands in Singapore and at Bethlehem Sands in Pennsylvania.
In Las Vegas at the company's Venetian and Palazzo properties gaming revenue was down 22.5%. Non-gaming on the other hand was very strong with rooms up 19.4% and food and beverage up 33.9%.
Perhaps the most surprising thing about today's results was the Sands' decision to raise the quarterly dividend by 10.8% from 65 to 72 cents per share starting in 2016. With the weakness in Macau I was thinking the company might have to keep the dividend steady, or even cut the dividend similar to what Wynn Resorts did recently.
Speaking of Wynn, Steve Wynn's comments about the Macau government and the government's response were bound to be asked about on the Las Vegas Sands earnings conference call.
As expected Sheldon Adelson was overtly respectful to the government saying, "We're in China, let the Chinese decide what they want to do with the concessionaires. Again it's our privilege, it's not our right. So we'll do everything we can to justify getting the blessings from the Macau government. It's their government, it's their right and we'll do whatever they ask us to do."
In Las Vegas at the company's Venetian and Palazzo properties gaming revenue was down 22.5%. Non-gaming on the other hand was very strong with rooms up 19.4% and food and beverage up 33.9%.
Perhaps the most surprising thing about today's results was the Sands' decision to raise the quarterly dividend by 10.8% from 65 to 72 cents per share starting in 2016. With the weakness in Macau I was thinking the company might have to keep the dividend steady, or even cut the dividend similar to what Wynn Resorts did recently.
Speaking of Wynn, Steve Wynn's comments about the Macau government and the government's response were bound to be asked about on the Las Vegas Sands earnings conference call.
As expected Sheldon Adelson was overtly respectful to the government saying, "We're in China, let the Chinese decide what they want to do with the concessionaires. Again it's our privilege, it's not our right. So we'll do everything we can to justify getting the blessings from the Macau government. It's their government, it's their right and we'll do whatever they ask us to do."
Thursday, October 01, 2015
September 2015 Las Vegas Stock Recap
With the calendar now showing October 2015, let's take a look back and see how Las Vegas stocks did in the month of September.
Boyd Gaming was the only stock I track that was up in September. It's performance was likely buoyed by strong trends in downtown and the Las Vegas locals market.
Penn National was brought down by the rest of the sector, but since they don't have any international exposure they weren't down as much as the others.
MGM Resorts International was down almost ten percent. Their exciting upcoming projects including the Las Vegas Arena and The Park were overshadowed by their exposure to Macau, which was weak.
Las Vegas Sands and Wynn Resorts both declined significantly again in September. Along with general softness in Macau, reports of troubles in the high end junket market has sent these two stocks into a tailspin.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They came crashing back down to earth in September though falling 38.32%. The Caesars bankruptcy proceedings are very uncertain at this point, and it looks like investors are becoming less certain of a turnaround.
Boyd Gaming was the only stock I track that was up in September. It's performance was likely buoyed by strong trends in downtown and the Las Vegas locals market.
Penn National was brought down by the rest of the sector, but since they don't have any international exposure they weren't down as much as the others.
MGM Resorts International was down almost ten percent. Their exciting upcoming projects including the Las Vegas Arena and The Park were overshadowed by their exposure to Macau, which was weak.
Las Vegas Sands and Wynn Resorts both declined significantly again in September. Along with general softness in Macau, reports of troubles in the high end junket market has sent these two stocks into a tailspin.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They came crashing back down to earth in September though falling 38.32%. The Caesars bankruptcy proceedings are very uncertain at this point, and it looks like investors are becoming less certain of a turnaround.
| Company | Symbol | Start | End | Change |
| Boyd | BYD | 16.10 | 16.30 | +1.24% |
| Penn | PENN | 18.16 | 16.78 | -7.60% |
| MGM | MGM | 20.43 | 18.45 | -9.69% |
| Sands | LVS | 46.23 | 37.95 | -17.91% |
| Wynn | WYNN | 75.05 | 53.12 | -29.22% |
| Caesars | CZR | 9.55 | 5.89 | -38.32% |
Tuesday, September 01, 2015
August 2015 Las Vegas Stock Recap
With the calendar now showing September 2015, let's take a look back and see how Las Vegas stocks did in the month of August.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They had a strong earnings report combined with some positive bankruptcy news. Caesars stock is highly speculative given their possible bankruptcy, but those willing to gamble reaped the rewards in August.
MGM Resorts International also reported solid earnings, and their stock was up on the news that they are strongly considering a REIT conversion.
Penn National officially became the owners of the Tropicana, but their stock was down slightly in August. Fellow regional player Boyd Gaming was also down.
Las Vegas Sands and Wynn Resorts both declined significantly in August as they were affected by the Chinese stock market.
Caesars Entertainment was the big winner in August soaring an incredible 83.3%. They had a strong earnings report combined with some positive bankruptcy news. Caesars stock is highly speculative given their possible bankruptcy, but those willing to gamble reaped the rewards in August.
MGM Resorts International also reported solid earnings, and their stock was up on the news that they are strongly considering a REIT conversion.
Penn National officially became the owners of the Tropicana, but their stock was down slightly in August. Fellow regional player Boyd Gaming was also down.
Las Vegas Sands and Wynn Resorts both declined significantly in August as they were affected by the Chinese stock market.
| Company | Symbol | Start | End | Change |
| Caesars | CZR | 5.21 | 9.55 | +83.30% |
| MGM | MGM | 19.62 | 20.43 | +4.13% |
| Penn | PENN | 19.08 | 18.16 | -4.82% |
| Boyd | BYD | 17.09 | 16.10 | -5.79% |
| Sands | LVS | 56.04 | 46.23 | -17.51% |
| Wynn | WYNN | 103.23 | 75.05 | -27.30% |
Monday, August 24, 2015
Las Vegas Stocks Fall in Global Selloff
In what has been dubbed on Twitter as Black Monday - stocks were down in a big way today as China fears caused a global selloff. The Dow, NASDAQ, and S&P 500 all fell by more than 3.5% on the day.
The big Las Vegas stocks were hard hit as they rely on the China economy in their Macau operations. Wynn Resorts fell almost 6.5%, MGM Resorts International was down 5% and Las Vegas Sands was off by 4%.
Even the regional gaming companies without China operations were affected by the selloff. Boyd Gaming was down by 3.3% and Penn National fell by just over 2.5%.
Caesars Entertainment bucked the trend however as they were up almost 12% on favorable bankruptcy news and good Atlantic City numbers. The fact that Caesars doesn't have any Macau operations also probably helped on this particular day.
The big Las Vegas stocks were hard hit as they rely on the China economy in their Macau operations. Wynn Resorts fell almost 6.5%, MGM Resorts International was down 5% and Las Vegas Sands was off by 4%.
Even the regional gaming companies without China operations were affected by the selloff. Boyd Gaming was down by 3.3% and Penn National fell by just over 2.5%.
Caesars Entertainment bucked the trend however as they were up almost 12% on favorable bankruptcy news and good Atlantic City numbers. The fact that Caesars doesn't have any Macau operations also probably helped on this particular day.
| Company | Symbol | Open | Close | Change |
| Caesars | CZR | 8.02 | 8.98 | +11.97% |
| Penn | PENN | 17.69 | 17.20 | -2.55% |
| Boyd | BYD | 16.03 | 15.50 | -3.31% |
| Sands | LVS | 47.99 | 46.05 | -4.04% |
| MGM | MGM | 20.59 | 19.54 | -5.10% |
| Wynn | WYNN | 81.77 | 76.48 | -6.47%% |
Saturday, August 01, 2015
July 2015 Las Vegas Stock Recap
With the calendar now showing August 2015, let's take a look back and see how Las Vegas stocks did in the month of July.
Boyd Gaming increased by almost 15 percent as the company reported strong second quarter earnings.
MGM Resorts International had a very eventful July. They first sold Circus Circus Reno and Silver Legacy to Eldorado Resorts. Then came the news that showtimes were being cut at the Mirage Volcano. The bombshell came when it was reported The Mirage was sold to Starwood Capital. All of this resulted in a 7.5 percent increase to the stock price. It should get even more interesting when MGM reports earnings next week.
Las Vegas Sands reported strong Las Vegas trends in the face of a stabilizing Macau market.
Wynn Resorts stock was up almost five percent on their second quarter earnings report. The earnings conference call got interesting as Steve Wynn talked about lowering craps odds to 2X.
Penn National had another good month, up almost four percent. Along with reporting strong earnings, Penn has plans for the Tropicana which could include the potential for a new hotel tower in the future.
July was a roller coaster ride for Caesars Entertainment. The month started out with Gary Loveman officially being replaced as CEO by Mark Frissora. Later in the month the company's stock jumped up 22% in one day on positive bankruptcy news only to fall 40% the very next day on negative news. The end result was the stock down fifteen percent in July. Next week could be even more volatile as Caesars reports earnings and Frissora has his first conference call.
Boyd Gaming increased by almost 15 percent as the company reported strong second quarter earnings.
MGM Resorts International had a very eventful July. They first sold Circus Circus Reno and Silver Legacy to Eldorado Resorts. Then came the news that showtimes were being cut at the Mirage Volcano. The bombshell came when it was reported The Mirage was sold to Starwood Capital. All of this resulted in a 7.5 percent increase to the stock price. It should get even more interesting when MGM reports earnings next week.
Las Vegas Sands reported strong Las Vegas trends in the face of a stabilizing Macau market.
Wynn Resorts stock was up almost five percent on their second quarter earnings report. The earnings conference call got interesting as Steve Wynn talked about lowering craps odds to 2X.
Penn National had another good month, up almost four percent. Along with reporting strong earnings, Penn has plans for the Tropicana which could include the potential for a new hotel tower in the future.
July was a roller coaster ride for Caesars Entertainment. The month started out with Gary Loveman officially being replaced as CEO by Mark Frissora. Later in the month the company's stock jumped up 22% in one day on positive bankruptcy news only to fall 40% the very next day on negative news. The end result was the stock down fifteen percent in July. Next week could be even more volatile as Caesars reports earnings and Frissora has his first conference call.
| Company | Symbol | Start | End | Change |
| Boyd | BYD | 14.95 | 17.09 | +14.31% |
| MGM | MGM | 18.25 | 19.62 | +7.51% |
| Sands | LVS | 52.57 | 56.04 | +6.6% |
| Wynn | WYNN | 98.67 | 103.23 | +4.62% |
| Penn | PENN | 18.35 | 19.08 | +3.98% |
| Caesars | CZR | 6.12 | 5.21 | -14.87% |
Friday, July 24, 2015
July 2015 Business News Roundup
With earnings season in full swing on Wall Street there were a few notable bits of Las Vegas business news this week.
Nevada regulators approved the merger of Lakes Entertainment and Golden Gaming. The combined company will be called Golden Entertainment and will be publicly traded. Golden currently operates in Nevada owning a few casinos in Pahrump along with taverns and slot machines located in grocery stores and other businesses. Lakes owns the Rocky Gap resort in Maryland.
Boyd Gaming reported second quarter 2015 earnings. Their Las Vegas properties had solid results. Las Vegas Locals revenue was up 3.21% from the second quarter last year, and Downtown was up 5.19%. Boyd stock was flat today on the news.
Las Vegas based Pinnacle Entertainment agreed to sell its real estate to Gaming and Leisure Properties (GLPI). Under this arraingement Pinnacle will continue to operate their resort properties while paying rent to GLPI. Penn National has a similar arrangement, as GLPI was split out from that company a few years ago.
In case you missed them earlier this week also check out my blog posts about Las Vegas Sands earnings and Penn National's plans for Tropicana.
Nevada regulators approved the merger of Lakes Entertainment and Golden Gaming. The combined company will be called Golden Entertainment and will be publicly traded. Golden currently operates in Nevada owning a few casinos in Pahrump along with taverns and slot machines located in grocery stores and other businesses. Lakes owns the Rocky Gap resort in Maryland.
Boyd Gaming reported second quarter 2015 earnings. Their Las Vegas properties had solid results. Las Vegas Locals revenue was up 3.21% from the second quarter last year, and Downtown was up 5.19%. Boyd stock was flat today on the news.
Las Vegas based Pinnacle Entertainment agreed to sell its real estate to Gaming and Leisure Properties (GLPI). Under this arraingement Pinnacle will continue to operate their resort properties while paying rent to GLPI. Penn National has a similar arrangement, as GLPI was split out from that company a few years ago.
In case you missed them earlier this week also check out my blog posts about Las Vegas Sands earnings and Penn National's plans for Tropicana.
Wednesday, July 22, 2015
Sands Reports Strong Las Vegas Numbers
Las Vegas Sands reported positive trends in their Las Vegas operations (Venetian and Palazzo) when they released second quarter 2015 earnings earlier today.
Compared to the same quarter last year:
Hotel room revenue was up 5.8%.
Food and Beverage was up 5.1%.
Convention, Retail and Other was up 0.7%.
Table games drop was up 6.0%.
Slot handle was up 15.4%.
Occupancy was 92.6% - up from 90.1%.
Average Daily Rate was $231 up 3.6%.
Revenue per Available Room was $ 214 up 6.5%.
Despite these positive numbers, overall Las Vegas revenue was actually down 17.1% from last year due to a poor hold percentage.
Also Las Vegas is only a small piece of the LVS pie, as Macau and Singapore make up the bulk of the company's revenue. Both of those markets were down compared to last year.
Compared to the same quarter last year:
Hotel room revenue was up 5.8%.
Food and Beverage was up 5.1%.
Convention, Retail and Other was up 0.7%.
Table games drop was up 6.0%.
Slot handle was up 15.4%.
Occupancy was 92.6% - up from 90.1%.
Average Daily Rate was $231 up 3.6%.
Revenue per Available Room was $ 214 up 6.5%.
Despite these positive numbers, overall Las Vegas revenue was actually down 17.1% from last year due to a poor hold percentage.
Also Las Vegas is only a small piece of the LVS pie, as Macau and Singapore make up the bulk of the company's revenue. Both of those markets were down compared to last year.
Wednesday, July 01, 2015
June 2015 Las Vegas Stock Recap
With the calendar now showing July 2015, let's take a look back and see how Las Vegas stocks did in the month of June.
Penn National had a good month, up 10%. The Tropicana's new owners experienced strong regional gaming, especially at their new Massachusetts property.
Boyd experienced a slight uptick as the Las Vegas locals market shows some signs of improvement.
Las Vegas Sands was up slightly despite an uncertain Macau market, which sent Wynn Resorts down slightly.
MGM Resorts International dropped almost 9%, in part because of the death of Kirk Kerkorian, and the news that his estate will be selling off their stake in the company.
The big loser in June was Caesars Entertainment, down almost 35% on bankruptcy fears.
Penn National had a good month, up 10%. The Tropicana's new owners experienced strong regional gaming, especially at their new Massachusetts property.
Boyd experienced a slight uptick as the Las Vegas locals market shows some signs of improvement.
Las Vegas Sands was up slightly despite an uncertain Macau market, which sent Wynn Resorts down slightly.
MGM Resorts International dropped almost 9%, in part because of the death of Kirk Kerkorian, and the news that his estate will be selling off their stake in the company.
The big loser in June was Caesars Entertainment, down almost 35% on bankruptcy fears.
| Company | Symbol | Start | End | Change |
| Penn | PENN | 16.63 | 18.35 | +10.34% |
| Boyd | BYD | 14.31 | 14.95 | +4.47% |
| Sands | LVS | 50.83 | 52.57 | +3.42% |
| Wynn | WYNN | 100.69 | 98.67 | -2.01% |
| MGM | MGM | 20.05 | 18.25 | -8.98% |
| Caesars | CZR | 9.36 | 6.12 | -34.62% |
Friday, June 05, 2015
MGM Wynn Merger Rumors
An interesting tidbit came out when Jim Cramer mentioned on CNBC that there is speculation of a possible Wynn Resorts merger with MGM Resorts International.
This scenario would be very similar to 15 years ago when MGM boss Jim Murren was instrumental in a takeover of Steve Wynn's Mirage Resorts.
Merger talk was also in the air at the Las Vegas Sands stockholder meeting today. A shareholder asked if a LVS takeover of Wynn Resorts was a possibility due to Wynn's decreased share price. Sheldon Adelson answered the question by saying (paraphrasing) without Steve Wynn running the show, Wynn Resorts would be worth a lot less. He also mentioned that he and Wynn are good friends and a takeover wouldn't be a comfortable situation for the two.
Mergers, acquisitions and buildings changing hands are common occurrences in the casino business. It will be interesting to see what happens to these companies over the next few months, and years. Throw a possible Caesars bankruptcy into the mix and things could get crazy on the Strip.
This scenario would be very similar to 15 years ago when MGM boss Jim Murren was instrumental in a takeover of Steve Wynn's Mirage Resorts.
Merger talk was also in the air at the Las Vegas Sands stockholder meeting today. A shareholder asked if a LVS takeover of Wynn Resorts was a possibility due to Wynn's decreased share price. Sheldon Adelson answered the question by saying (paraphrasing) without Steve Wynn running the show, Wynn Resorts would be worth a lot less. He also mentioned that he and Wynn are good friends and a takeover wouldn't be a comfortable situation for the two.
Mergers, acquisitions and buildings changing hands are common occurrences in the casino business. It will be interesting to see what happens to these companies over the next few months, and years. Throw a possible Caesars bankruptcy into the mix and things could get crazy on the Strip.
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