BloggingStocks

Wynn Resorts Trades Higher Following Better-Than-Expected Earnings

Michael Fowlkes — Fri, 30 Apr 2010 10:20:00 EST

Filed under: International Markets, Earnings Reports, China

Luxury casino operator Wynn Resorts (WYNN) traded higher after hours today following the company's better-than-expected earnings report this afternoon.

Higher revenue in China and Las Vegas helped the company to report a profit after posting a loss during the same period last year. Earnings for the quarter were 22 cents per share, versus a loss of 30 cents during the same period last year. Analysts had been expecting to see WYNN post earnings of 14 cents a share.

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Wynn Resorts Trades Higher Following Better-Than-Expected Earnings originally appeared on BloggingStocks on Fri, 30 Apr 2010 10:20:00 EST. Please see our terms for use of feeds.

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Trump Joins Bondholders for Control of Casinos

Connie Madon — Tue, 13 Apr 2010 17:00:00 EST

Filed under: Deals, Management, Industry, Competitive Strategy, Entrepreneurs

The "Donald" did it again for the third time. Donald Trump joined with bondholders to gain control of Trump Entertainment Resorts and its three casinos.

Trump, the master of the game, offered bondholders the use of the Trump name on the three casinos instead of cash. In a bankruptcy hearing, Judge Judith Wizmur, ruled that: "The Trump brand is worth million of dollars to the debtors. The debtors identification with the Trump Organization raises its profile in the gaming industry."

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Trump Joins Bondholders for Control of Casinos originally appeared on BloggingStocks on Tue, 13 Apr 2010 17:00:00 EST. Please see our terms for use of feeds.

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Is Donald Trump's Brand Still Worth Anything?

Zac Bissonnette — Fri, 26 Feb 2010 17:30:00 EST

As the court battle for control of a trio of Atlantic City casinos between Carl Icahn and Donald Trump heats up, one question is coming into focus: How much is Donald Trump's name on the top of a casino worth?

Trump argues that giving him control of the company is the best move, in part because his name is such a big draw. Icahn counters that the main disadvantage to losing the Trump name would be the cost of changing the signs.

Burn!

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Is Donald Trump's Brand Still Worth Anything? originally appeared on BloggingStocks on Fri, 26 Feb 2010 17:30:00 EST. Please see our terms for use of feeds.

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Russian casinos go bust -- gamblers head elsewhere

Beth Gaston Moon — Mon, 06 Jul 2009 15:00:00 EST

Filed under: Russia, Employees, Recession

Thanks a lot, Vladimir Putin. The former Russian president (now prime minister) signed an anti-vice law in 2006 that has led to the closure of most casinos in the struggling nation. This move quickly killed more than 400,000 jobs as of July 1 in a country already in the throes of an economic crisis. More than 40,000 casino workers were impacted in Moscow alone, which was home to 30 major casinos and 500 smaller operations.

Four remote Russian regions have now been established as special gambling zones, and gambling is now illegal anywhere outside of these locations.

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Russian casinos go bust -- gamblers head elsewhere originally appeared on BloggingStocks on Mon, 06 Jul 2009 15:00:00 EST. Please see our terms for use of feeds.

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Tourism slumping in Macau

Beth Gaston Moon — Tue, 26 May 2009 14:30:00 EST

Filed under: China, Recession

Las Vegas isn't the only gaming mecca struggling for numbers; Macau saw the number of visitor arrivals to its shores drop 3.5% in April to about 1.87 million.

For the first four months of the year, visitor arrivals by land have dropped 15.5% on a year-over-year basis, while arrivals by air are slumping as well, off 5.9% for the first third of 2009. Total visitor arrivals in 2009 are down 8.1% from the same time period last year.

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Tourism slumping in Macau originally appeared on BloggingStocks on Tue, 26 May 2009 14:30:00 EST. Please see our terms for use of feeds.

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Wynn Resorts: Casino sector headwinds to persist

Joseph Lazzaro — Thu, 23 Apr 2009 18:20:00 EST

Filed under: Stocks to Sell

Now would a good time to Short shares of Wynn Resorts (NYSE: WYNN). A perfect storm of unfavorable factors -- visa restrictions, the global recession, increased competition, and a crack-down on needless corporate and related business travel, do not bode well for WYNN.

Other negatives: Las Vegas is in a pronounced recession, the typical American is scaling-back domestic travel, and more retirees are feeling an income squeeze as companies cut or eliminate dividends. The First Call FY 2009/FY 2010 EPS estimates for WYNN are 27 cents to 63 cents.

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Wynn Resorts: Casino sector headwinds to persist originally appeared on BloggingStocks on Thu, 23 Apr 2009 18:20:00 EST. Please see our terms for use of feeds.

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Shuffle Master's Q3 wasn't disastrous, but there's still work to be done

Steven Mallas — Wed, 10 Sep 2008 11:15:00 EST

Filed under: Earnings Reports

I have a soft spot for Shuffle Master (NASDAQ: SHFL). A few years back, I owned the stock when it was in its growth phase and made a little money on it. Now, though, the gambling entity's shares are stuck in $5-land, and it's truly been a terrible stock.

Well, on Monday, Shuffle Master reported earnings for the third quarter after the market closed. In a relative sense, the numbers weren't too bad, but at the same time, they in no way make me want to buy the stock. And believe me, I have been waiting for the day when data will reveal that Shuffle Master is a buy. I just feel that the company can return to growth at some point. Gambling isn't going away, right?

Anyway, according to this RTTNews link, revenues increased nearly 10% during the quarter, but sadly, the bottom line couldn't move. Shuffle Master booked only $0.08 per share in terms of net income, a stat which represents 0% growth. It also was a miss by two pennies of Wall Street's estimates. However, according to the press release issued by the company, there is one neat silver lining in the form of cash from operations. That metric increased 9% during the quarter, and it was driven by diligent management of working capital changes.

Continue reading Shuffle Master's Q3 wasn't disastrous, but there's still work to be done

Shuffle Master's Q3 wasn't disastrous, but there's still work to be done originally appeared on BloggingStocks on Wed, 10 Sep 2008 11:15:00 EST. Please see our terms for use of feeds.

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Lady Luck deserts gambling stocks

Victoria Erhart — Sat, 05 Jul 2008 11:40:00 EST

Filed under: Earnings Reports, Bad News

There is something rotten in Denmark, to quote from Hamlet, Act I, as well as in Las Vegas, Louisiana, Mississippi, Colorado, Iowa, and Florida. Gambling havens, once thought recession proof, are in trouble. Customer numbers are down, as are gambling, gift shop, hotel, and restaurant revenues. Casinos in Las Vegas have been hard hit, according to a recent article in the Wall Street Journal, because of billions of dollars of debt to finance overambitious expansion plans. Tropicana Entertainment filed for Chapter 11 in May, defaulting on $2.67 billion in bank and bond debt. But smaller casinos are also feeling the pain.

Isle of Capri Casinos Inc. (NASDAQ: ISLE) recently reported 4Q and FY2008 results. Snake eyes. Investors know they are not in for good news when the CEO spends the first few paragraphs of an earnings release discussing what a "transformational period" the last year has been. That's corporate-speak for "money losing," beginning with a $78.7 million write down in the value of some of the company's international assets and ending with a $51.3 million loss from continuing operations in 4Q 2008. All told, Isle of Capri Casinos lost $96.9 million from continuing operations in FY2008.The company cited increased competition in riverboat gambling in Biloxi, a smoking ban in casinos in Colorado, and a flood in Natchez as reasons for the lackluster performance. The company admits it needs to renovate 1,200 of its hotel rooms in order to attract customers back to the slots and tables.

The stock is currently trading at $4.23, near its 52-week low of $3.97.

Lady Luck deserts gambling stocks originally appeared on BloggingStocks on Sat, 05 Jul 2008 11:40:00 EST. Please see our terms for use of feeds.

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Shuffle Master beats Q2 expectations, shares rise, but investors should be very cautious

Steven Mallas — Mon, 09 Jun 2008 19:09:00 EST

Filed under: After the Bell, Earnings Reports

Shuffle Master's (NASDAQ: SHFL) shares are up over 12% at the time of this writing in Monday's after-hour sessions on earnings news. Revenues for the supplier to the casino industry increased 10% to $49 million in the second quarter. Earnings per diluted share from continuing operations improved dramatically to $0.09 versus a net loss of $0.05 per diluted share. This was enough to best Wall Street analysts and their expectations game by two pennies, according to Briefing.com.

Cash flow from operations also improved, rising nearly 50% to $15.2 million. Other positive elements include a stable gross margin, a decline in operating expenses on a sequential basis, and improved contribution from the Stargames asset. Shuffle Master did seem to shine in the quarter on a relative basis.

But any investor out there thinking that this stock is a buy now needs to do a lot of due diligence. Granted, I'm intrigued by the recent price action of Shuffle Master's stock. The shares closed on Monday at $6.24, a level that indicates some momentum since the 52-week low is $4.50. And with the stock trading at $7 as I write, I do wonder about the potential for appreciation here. However, I'm not buying. Shuffle Master is still trying to turn itself around, and it isn't the growth stock it once was. My gut might feel a little more bullish over the company, but it still remembers the empathetic nausea it felt for those shareholders who watched the stock drop like a knife from over $18 to the aforementioned low of the year. Gambling will be a hot sector over time, but I see no reason to rush into Shuffle Master.

Disclosure: I don't own shares in any company mentioned; positions can change at any time.

Shuffle Master beats Q2 expectations, shares rise, but investors should be very cautious originally appeared on BloggingStocks on Mon, 09 Jun 2008 19:09:00 EST. Please see our terms for use of feeds.

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Earnings highlights: GE, Alcoa, Circuit City, UPS, Dell, DuPont, AMD and others

Trey Thoelcke — Sat, 12 Apr 2008 17:40:00 EST

Filed under: Earnings Reports, Dell (DELL), General Electric (GE), Target Corp. (TGT), Advanced Micro Dev (AMD), Alcoa Inc (AA), Circuit City Stores (CC), duPont(E.I.)deNemours (DD), United Parcel'B' (UPS), Genentech Inc (DNA), Progressive Corp,Ohio (PGR), Rite Aid Corp (RAD)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Acuity Brands Inc. (NYSE: AYI) beat second-quarter estimates on increased productivity and new products.
Advanced Micro Devices (NYSE: AMD) cut its outlook and announced job cuts.
Alcoa Inc. (NYSE: AA) missed first-quarter earnings estimates but beat revenue expectations.
Circuit City Stores Inc. (NYSE: CC) surprised Wall Street by posting a second-quarter profit.
Dell Inc.'s (NASDAQ: DELL) rosy 2008 forecast is based on cost cuts, overseas growth, share buybacks.
DuPont & Co. (NYSE: DD) raised its first-quarter outlook on strength in agriculture and emerging markets.
Eastman Chemical Co. (NYSE: EMN) raised its first-quarter guidance on strong sales and higher prices.
EXFO Electro-Optical Engineering (NASDAQ: EXFO) beat estimates and announced an acquisition.
Foundry Networks Inc. (NASDAQ: FDRY) slashed its first-quarter outlook, blaming the weak economy.
Genentech Inc. (NYSE: DNA) beat first-quarter earnings estimates, but not revenue expectations.
General Electric Co. (NYSE: GE) missed earnings expectations and lowered its guidance.
Novellus Systems Inc. (NASDAQ: NVLS) trimmed its first-quarter earnings and revenue forecasts.
Progressive Corp. (NYSE: PGR) beat estimates though first-quarter profits fell due to lower premiums.
Rite Aid Corp. (NYSE: RAD) swung to a loss in the fourth quarter on acquisition costs and a tax charge.

Continue reading Earnings highlights: GE, Alcoa, Circuit City, UPS, Dell, DuPont, AMD and others

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MGM Mirage (MGM) slides on analysts' actions

Brent Archer — Mon, 07 Apr 2008 15:29:00 EST

Filed under: Major Movement, Analyst Reports, Analyst Upgrades and Downgrades, Bad News, Industry, Options, Technical Analysis

MGM Mirage (NYSE: MGM) stock is falling after an analyst at UBS downgraded the stock to "Neutral" from "Buy," citing declining business on the Las Vegas Strip. A Wachovia analyst also cut his estimates for MGM and other casinos, saying that the Vegas market is "uncertain." If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MGM.

After hitting a one-year high of $100.50 in October, the stock hit a one-year low of $57.26 in March.. This morning, MGM opened at $60.58. So far today the stock has hit a low of $57.90 and a high of $60.58. As of 1:45, MGM is trading at $58.84, down $2.23 (-3.9%). The chart for MGM looks neutral but improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $75 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in two and a half months as long as MGM is below $75 at June expiration. MGM would have to rise by more than 28% before we would start to lose money. Learn more about this type of trade here.

MGM hasn't been above $75 since early January and has shown resistance around $65 recently. This trade could be risky if the company's earnings (due out in late April or early May) are a positive surprise, but even if that happens, this position could be protected by resistance MGM might find around $73, where it topped out in January and February.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in MGM.

MGM Mirage (MGM) slides on analysts' actions originally appeared on BloggingStocks on Mon, 07 Apr 2008 15:29:00 EST. Please see our terms for use of feeds.

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Book review: Winner Takes All: Steve Wynn, Kirk Kerkorian, Gary Loveman, and the Race to Own Las Vegas

Zac Bissonnette — Fri, 28 Mar 2008 06:47:00 EST

Filed under: Books

The Wall Street Journal's lead Las Vegas reporter Christina Binkley has written one of the best business narratives in years. Winner Takes All is a story about Las Vegas' emergence as something other than a kitschy gambling trap for seniors. Binkley writes fluidly and entertainingly about IPOs, mergers and acquisitions, and all the transactions that results in Las Vegas' greatest resorts like Belagio and Wynn Las Vegas.

What makes this book so interesting is the cast of egos, I mean characters. There's Steve Wynn, the megalomaniacal visionary who oversees everything from financing to the color of the carpets in rooms -- while he's going blind. Kirk Kerkorian is the most mysterious of the group, running his empire from an office in California, rarely visiting his properties. Gary Loveman is to Las Vegas what Oakland A's manager Billy Beane is to baseball: a former Harvard professor, he left to enter an industry that was at the time dominated by far less sophisticated people. Employing an army of "propeller heads," Loveman brought a mathematical approach to marketing, transforming Harrah's into the Wal-Mart Stores, Inc. (NYSE: WMT) of casinos.

By keeping the focus on the people, and moving back and forth between empires, Ms. Binkley keeps this book from degenerating into an endless series of meetings and phone calls, as so many books like this do. If you're interested in looking at the rebirth of Las Vegas from a business perspective, you'll want to buy this one.

Book review: Winner Takes All: Steve Wynn, Kirk Kerkorian, Gary Loveman, and the Race to Own Las Vegas originally appeared on BloggingStocks on Fri, 28 Mar 2008 06:47:00 EST. Please see our terms for use of feeds.

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Movie review: Owning Mahowny

Zac Bissonnette — Sat, 15 Dec 2007 17:40:00 EST

Filed under: Film

I just watched a terrific movie (based on a true story) about Dan Mahowny, a compulsive gambler who defrauded the bank he worked for to feed his habit. It's a must-see for anyone who is a student of white collar crime -- which is something all investors ought to be.

Philip Seymour Hoffman stars as a socially awkward, up-and-coming assistant manager at the Canadian Imperial Bank of Commerce. Having developed a serious gambling addiction that started when he was a pre-teen, he finds himself owing a few thousand dollars to a bookie, but he doesn't have the money. So he opens up a phantom account with the bank for a fictitious person, and establishes a line of credit to pay off his gambling debt. He doesn't get caught, so he begins to use that account and others to gamble. By the time he was caught, he had embezzled over $10 million from his employer in a span of just 18 months.

Continue reading Movie review: Owning Mahowny

Movie review: Owning Mahowny originally appeared on BloggingStocks on Sat, 15 Dec 2007 17:40:00 EST. Please see our terms for use of feeds.

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Steve Wynn shows why he's the real casino mogul

Zac Bissonnette — Sun, 11 Nov 2007 17:40:00 EST

Filed under: Magazines, Marketing and Advertising

First a confession: I dislike Donald Trump with intensity and, whenever possible, I will do a post for the sole purpose of slamming him. Full disclosure: This is one of those posts.

Shares of Steve Wynn's Wynn Resorts (NASDAQ: WYNN) have been on a roll for years (even allowing for the recent pullback), in sharp contrast with better-known casino mogul Donald Trump's Trump Entertainment Resorts (NASDAQ: TRMP), which is suffocating under the weight of a heavy debt load, engaging in a so far fruitless search for a buyer.

A piece in Smart Money tells of Wynn's meteoric rise from humble roots -- which also contrasts nicely with Trump's privileged upbringing and reckless investments that nearly destroyed his inherited fortune. He also spoke about his ambitious plans for Macau, and complains about the pizza at his resort.

In the world of flamboyant casino icons, Donald Trump gets all the headlines. But Steve Wynn is smarter, more successful, more interesting, and has better hair -- and a fondness for Picasso, although he accidentally poked a hole in a $40 million piece.

Wynn's star is on the rise -- The Donald's time as a star is over because of overexposure. Witness the declining ratings of his Apprentice series.

Maybe Steve Wynn should write a book or host a TV show to get his star up to snuff. Oh wait, he's too busy being an actual mogul, rather than just playing one on TV.

Steve Wynn shows why he's the real casino mogul originally appeared on BloggingStocks on Sun, 11 Nov 2007 17:40:00 EST. Please see our terms for use of feeds.

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MGM Mirage (MGM) bets big in Atlantic City

Michael Fowlkes — Wed, 10 Oct 2007 10:16:00 EST

Filed under: Press Releases, Products and Services, Launches, Consumer Experience, Competitive Strategy

Resort and Casino giant MGM Mirage (NYSE: MGM) is expected to announce its latest big bet today... a $5 billion casino project in Atlantic City.

The new project gained approval on Monday by the company's board of directors at a meeting held in Detroit, and construction is expected to get under way next year and complete by 2012.

The new development should be an impressive addition to the Atlantic City strip. The new casino, called the MGM Grand Atlantic City will definitely make a bold statement with its 3,000 rooms and suites in three different hotel towers. Big time gamers out there will be able to get their full of action from the casino's 5,000 slot machines and 200 table games.

Continue reading MGM Mirage (MGM) bets big in Atlantic City

MGM Mirage (MGM) bets big in Atlantic City originally appeared on BloggingStocks on Wed, 10 Oct 2007 10:16:00 EST. Please see our terms for use of feeds.

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Las Vegas Sands (LVS), Universal Studios look to Singapore for new parks, resorts

Tom Barlow — Wed, 05 Sep 2007 17:31:00 EST

Filed under: Launches, Competitive Strategy, General Electric (GE), China, Las Vegas Sands (LVS)

Macao has emerged as the gaming and entertainment hotspot of China, and already Las Vegas Sands Corp. (LVS) and General Electric Company (NYSE: GE)'s Universal Studios is looking for more fresh meat. They think they've found it in Singapore, and the grand Resorts World at Sentosa.

The Resorts World is a ~~cooperative~~ venture of Genting Int'l ~~(75% stake) and Star Cruises (25%)~~. The 120-acre, $5.2 billion development will include casinos, a Universal Studios theme park, hotels, a marine park, and other resort entertainments. Las Vegas Sands is constructing the Marine Bay Sands, investing over $3 billion in the facility. Early projections point to a 2009-2010 time frame for its opening.

Universal has promised to not build any other parks in SE Asia for 30 years as part of its agreement to build a $1 billion theme park.

All these grand plans, however, rest on successful completion of the infrastructure by Genting ~~RWS owners~~, and they are just now reaching the point where final total costs can be estimated. If the ~~partners have~~ developer has to reach deeper for additional cash, investors in LVS and GE may become a bit nervous about the amount of money these companies have already thrown in the pot.

Las Vegas Sands (LVS), Universal Studios look to Singapore for new parks, resorts originally appeared on BloggingStocks on Wed, 05 Sep 2007 17:31:00 EST. Please see our terms for use of feeds.

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Las Vegas Sands (LVS) opens world's biggest casino

Tom Barlow — Fri, 31 Aug 2007 16:20:00 EST

Filed under: Launches, Conventions and Conferences, Competitive Strategy, China, Las Vegas Sands (LVS)

Last year, more money was gambled in Macao, China's version of Las Vegas, than anywhere else in the world. The big players in the casino world are rapidly expanding to serve what they see as a burgeoning market. This week Las Vegas Sands (NYSE:LVS) rolled out the biggest table stake yet, opening the mammoth Venetian Macao.

Mammoth may be an understatement for this complex, which Las Vegas Sands claims is the second largest single-phase construction in the world, behind only a flower warehouse in Holland. Check out these numbers:

3,000 rooms
1.2 million square feet of convention space
550,000 square ft of gaming space, with 3,400 slots, 870 gaming tables
15,000 seat theater soon to feature the Cirque du Soleil.
10,000-person staff.

Continue reading Las Vegas Sands (LVS) opens world's biggest casino

Las Vegas Sands (LVS) opens world's biggest casino originally appeared on BloggingStocks on Fri, 31 Aug 2007 16:20:00 EST. Please see our terms for use of feeds.

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Hard Rock cafes looks for massive global expansion

Michael Fowlkes — Tue, 26 Jun 2007 08:59:00 EST

Filed under: International Markets, Good news, Management, Consumer Experience, Marketing and Advertising, India, China, Eastern Europe

The Hard Rock cafe chain of restaurants and casinos is gearing up for a massive expansion plan around the world. The cafe chain, which was purchased last year by the native American Seminole Tribe of Florida announced yesterday plans to expand the business by up to 100%.

The new expansion plan envisions seeing the Hard Rock logo popping up on cafes, hotels and casinos in some of the fastest growing markets around the world, including China, India and eastern Europe. Currently the chain has around 125 cafes and the new business plan is looking to double that number to upwards of 250 cafes globally.

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Hard Rock cafes looks for massive global expansion originally appeared on BloggingStocks on Tue, 26 Jun 2007 08:59:00 EST. Please see our terms for use of feeds.

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Should casinos be judged for reaching out to Asians?

Michael Fowlkes — Wed, 13 Jun 2007 17:40:00 EST

Filed under: Industry, Consumer Experience, Rants and Raves, Competitive Strategy, Marketing and Advertising, Harrah's Entertainment (HET), Las Vegas Sands (LVS)

It is not a secret that casinos have been investing a lot of resources into catering to their Asian clients, but should it be acceptable for them to actively and aggressively try to pull Asians into their gaming facilities? According to any article from The New York Times, the recent promotional blitz by Las Vegas toward the Asian community has created emotions ranging from concern to downright extreme anger.

There are basically two ways in which Las Vegas casinos are able to lure in and keep the business of wealthy Asian (mostly newly rich Chinese) and Asian-Americans. One is by creating an enjoyable experience inside the casinos. Second is targeted advertising to the Asian demographic.

The first method strives to create an "Asian friendly" environment inside casinos. This method is one that I have absolutely no problem with what-so-ever. The first and most important rule of thumb in running a successful business is to "know your customer," and casinos can not be blamed for spotting the tremendous amount of cash inflows from their Asian clients and creating a more "user friendly" environment.

The second method involves special societal-based advertising campaigns. This is where the slippery slope of ethics begins, and I for one, have a hard time blaming the casinos for their marketing campaigns. The article gives example of Las Vegas and Atlantic City casinos using advertisements in Asian dialects; advertisements placed in community newspapers in nearby cities; and mailers written in a recipient's native language.

Continue reading Should casinos be judged for reaching out to Asians?

Should casinos be judged for reaching out to Asians? originally appeared on BloggingStocks on Wed, 13 Jun 2007 17:40:00 EST. Please see our terms for use of feeds.

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Macau casinos threatened by travel restrictions

Tom Barlow — Tue, 29 May 2007 10:50:00 EST

Filed under: Bad News, China, Las Vegas Sands (LVS), Politics

Las Vegas Sands (NYSE: LVS), Wynn Resorts Ltd. (NASDAQ: WYNN), and MGM Mirage (NYSE: MGM) all have huge investments in the Las Vegas of the east, Macau. How large is illustrated by the drop in stock prices when, last Friday, a local China paper reported that Guangdong province was tightening travel restrictions to Macau. LVS finished down 1.56% and Wynn dropped 2.02%. MGM weathered the storm to finish even, possibly buoyed by Kirk Kerkorian's offer last week to buy two prime (non-Macau) properties.

Because the Macau region now surpasses Las Vegas in gambling revenue, punters have taken a distinctly bullish view of development, ignoring the Chinese government's capricious attitude about its people's freedom of movement.

I don't expect the Chinese government to strangle the growth of the Macau region, especially in the run-up to the 2008 Olympics. However, I think that we'll see more occasional setbacks in the stock of these companies, whenever something like this happens to remind investors of the greater risk they assume by piling their chips on red to win.

Macau casinos threatened by travel restrictions originally appeared on BloggingStocks on Tue, 29 May 2007 10:50:00 EST. Please see our terms for use of feeds.

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