Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : True face of China -- A Modern Kaleidoscope -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2192)	10/3/2007 9:45:54 PM
From: RealMuLan	Respond to of 12464

[There are ONLY so MANY sucker gamblers after all!<g>]--Wynn, Las Vegas Sands Drop on Macau Revenue Report (Update6) bloomberg.com By Mary Jane Credeur and Allen Wan Enlarge Image/Details Oct. 3 (Bloomberg) -- Wynn Resorts Ltd. and Las Vegas Sands Corp., the U.S. casino companies making the biggest bets in Macau, both fell more than 9 percent in U.S. trading after Morgan Stanley said September gaming revenue in the Chinese region was lower than estimated. Preliminary revenue climbed a ``disappointing'' 55 percent from a year earlier, Celeste Mellet Brown, a Morgan Stanley analyst, said today in a research note. The firm had predicted a gain of about 75 percent. Casino operators are expanding in Macau, the only region in China where gambling is legal. It surpassed the Las Vegas Strip as the world's biggest casino center with $6.9 billion in gambling revenue last year. Las Vegas Sands, led by billionaire Chairman Sheldon Adelson, unveiled the Venetian Macao in late August and Wynn opened its Macau resort last year. ``The gaming revenue number implies that the new supply that came to the market shifted revenue rather than grew the market incrementally,'' wrote Mellet Brown, who rates both Wynn and Las Vegas Sands shares ``equal weight.'' The opening of new resorts such as the Venetian Macao added about 30 percent more gambling tables, she said. Wynn, founded by billionaire Steve Wynn, plunged $16.43, or 9.9 percent, to $149.40 at 4 p.m. in Nasdaq Stock Market composite trading, the biggest drop in almost five years. Las Vegas Sands fell $17.03, or 12 percent, to $127.53 on the New York Stock Exchange, the largest decline in almost three years. Both casino operators are based in Las Vegas. Their shares more than doubled since the beginning of 2006. Macau Casinos Wynn Resorts spokeswoman Jennifer Dunne and Las Vegas Sands spokesman Ron Reese didn't return calls seeking comment. Casino companies with a presence in Macau have surged in trading since the 75 percent growth forecast was circulated about a week ago, Harry Curtis, an analyst with J.P. Morgan Securities Inc. in New York, wrote today in a note to clients. ``This has served to heighten expectations, which could lead to inevitable disappointment,'' wrote Curtis, who rates both Wynn and Las Vegas Sands ``overweight.'' Curtis had predicted a 52 percent increase in Macau gaming revenue. ``55 percent growth is, in our view, very respectable,'' he wrote, noting the figure hasn't been confirmed by the Chinese government. `Story Done' ``Is the story done in Macau?'' said Charles Norton, who helps manage GNI Capital Inc.'s $156 million Vice Fund, which includes Wynn and Las Vegas Sands shares. ``Not even close. You know it's a fast-growing market when the preliminary number is 55 percent and people are disappointed.'' September is historically one of the weakest months, Curtis said. China's ``Golden Week'' holiday in October tends to be one of the busiest, he said. Robin Farley, an analyst at UBS Securities LLC, lowered her rating on Wynn Resorts' shares to ``sell'' from ``neutral,'' on the September revenue figures and future growth prospects in Macau. ``We believe the most optimistic scenarios are already priced in,'' said Farley, who has a price forecast of $129 a share over an undetermined period.