Stock message boards
MNV
Market News Video
MNV MNV Model Portfolios ChartZero
MNV
MNV
MNV
MNV
MNV
MNV
MNV
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

May 9th Options Now Available For MGM Resorts International (MGM)
Thursday, March 27, 12:46 PM ET, by Market News Video Staff

Investors in MGM Resorts International (MGM) saw new options become available today, for the May ...

Oversold Conditions For Wynn Resorts Ltd (WYNN)
Thursday, March 27, 1:28 PM ET, by Market News Video Staff

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy ...

International Game Technology Enters Oversold Territory
Thursday, March 27, 1:28 PM ET, by Market News Video Staff

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, ...

First Week of May 17th Options Trading For Melco Crown Entertainment Ltd (MPEL)
Monday, March 31, 11:08 AM ET, by Market News Video Staff

Investors in Melco Crown Entertainment Ltd (MPEL) saw new options begin trading this week, for ...

Interesting September Stock Options for LVS
Monday, March 31, 12:11 PM ET, by Market News Video Staff

Consistently, one of the more popular stocks people enter into their stock options watchlist at ...

  More articles:  1 2 3 4 5 6 7 next »

Casino Stocks: Turbo-Growth From Rising Asian Wealth

By ETF Channel Staff, Monday, September 26, 12:06 PM ET
Play Video: The Importance of ETFs


If the video does not load after a few moments, Upgrade to the Latest Flash Player.

Article by Frank M. Bifulco, CFA - Alcott Capital Management

“Go West Young Man, Go West” was the advice from Horace Greeley. No doubt the folks who built Las Vegas took that to heart as they made the gambling mecca a multi-billion dollar colossus the last 60 years. But Greeley may not have told his protégé to go far enough west – for the real action is in Macau, the ex-Portuguese colony off the coast of China that is fast-becoming a turbo-charged version of Las Vegas.

The Chinese government strictly controls gambling licenses so the problems that hit Las Vegas with over-supply and competition from Atlantic City and Indian casinos are not an issue. While the mature markets of Las Vegas and Atlantic City struggle for revenue growth (AC is actually 40% below its 2007 peak), Macau continues to grow revenues at an astronomical rate, fueled by newfound Chinese and Asian wealth. Recent year-over-year revenue growth for Macau casinos are in excess of 50%. Las Vegas and Macau were at parity in 2006; Macau may finish 2011 with 5x as much revenue as Las Vegas. Many of the Asian high-rollers frequenting Macau used to go to Las Vegas or Atlantic City because there were no closer options. Now there are.

Wynn Resorts Ltd. (NASDAQ:WYNN) is run by the legendary Steve Wynn (Golden Nugget, Mirage) and trades for about $140 or 24x 2012 EPS. Las Vegas Sands (NYSE:LVS), run by Sheldon Adelson, trades about $45 or 19x 2012 EPS. Both companies have gaming venues around the globe, including Las Vegas, so they are not pure-plays on Macau. But Macau is the growth engine that separates them from U.S. domestic plays. MGM Resorts International (NYSE:MGM) and Melco Crown Entertainment (NASDAQ:MPEL) are more aggressive plays on Macau and Asia, both have less-seasoned management and higher operational and financial risks. Based on EV/EBITDA (which adjusts for differences in capitalization structure), Melco Crown is the cheapest in the group at about 8X EV/EBITDA on 2012 estimates, but also carries the highest risk because of financial and operating leverage to the higher-growth Asian markets. MGM Resorts trades at just under 10X EV/EBITA, and Las Vegas Sands and Wynn are at 13X and 11X, respectively.

There is only one pure gaming ETF – the Market Vectors Gaming ETF (AMEX:BJK) – and it is fairly small at just under $150 million in assets. LVS, WYNN, and MGM are all in the Top 10 holdings list which numbers over 50 stocks in total. Separately-listed entities for the Asian holdings of the U.S. casinos are also in BJK so you get a bit more ‘juice’ from the inclusion of Sands China and Wynn Macau. PowerShares Dynamic Leisure & Entertainment (AMEX:PEJ) ETF has casino stocks but is mostly a play on consumer discretionary spending. WYNN was the only casino stock in the Top 10 holdings for PEJ.

Full List of BJK Holdings

Full List of PEJ Holdings

Do you really feel lucky? Then you might want to take a look at International Game Technology (NYSE:IGT), the premier supplier of slot machines and other gaming equipment. If Las Vegas and Atlantic City recover in the U.S., then a new replacement cycle (including the Indian casinos) should boost domestic revenues while new casinos and expansion in Macau and Asia boosts overseas sales. IGT is a higher-risk, higher-reward play on domestic and global gaming so make sure you do your due diligence to prevent your investment from coming up snake eyes.



FREE TRIAL TO THE "ETF CHANNEL FLEXIBLE GROWTH INVESTMENT PORTFOLIO"

The ETF Channel Flexible Growth Investment Portfolio is designed to seek growth for investors — anywhere and everywhere. The key to the program is our portfolio strategy allows us complete flexibility in terms of asset allocation as there are no predetermined guidelines as to the level of stocks, bonds, cash, regions, countries, sectors, commodities, or even asset classes in the portfolio! In short, this is a completely flexible portfolio designed to follow the performance trail wherever it leads us.


Top Six Most Viewed Stories This Week @ Market News Video:
Tuesday Sector Leaders: General Contractors & Builders, Computer PeripheralsTuesday Sector Leaders: General Contractors & Builders, Computer Peripherals
Channel: Market Movers
Related symbols: MHO,BZH,EXTR,KTCC
S&P 500 Analyst Moves: VRTXS&P 500 Analyst Moves: VRTX
Channel: Upgrades/Downgrades
Related symbols: VRTX
Tuesday 4/1 Insider Buying Report: TFM, HEROTuesday 4/1 Insider Buying Report: TFM, HERO
Channel: Insider Buying Report
Related symbols: TFM,HERO
S&P 500 Analyst Moves: MHKS&P 500 Analyst Moves: MHK
Channel: Upgrades/Downgrades
Related symbols: MHK
Dow Analyst Moves: CSCODow Analyst Moves: CSCO
Channel: Upgrades/Downgrades
Related symbols: CSCO
Wednesday 4/2 Insider Buying Report: LUB, EXAWednesday 4/2 Insider Buying Report: LUB, EXA
Channel: Insider Buying Report
Related symbols: LUB,EXA

This Article's Word Cloud:   AMEX   Asia   Asian   Atlantic   Chinese   City   Crown   Definition   Entertainment   Greeley   Indian   Macau   Melco   NYSE   Resorts   Sands   Vegas   WYNN   West   Wynn   about   asset   because   casinos   domestic   financial   from   gaming   growth   have   higher   holdings   including   markets   over   play   plays   portfolio   pure   revenue   risk   stocks   that   there   they   trades   under   with   year   your
MNV
MNV
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use & Privacy Policy - Video Widget
MNV
Home  |  Analyst News  Dividend Report  Econonomic News  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV
MNV MNV Stock Market Definitions
MNV

Casino Stocks: Turbo-Growth From Rising Asian Wealth | Market News Video | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.