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WYNN and LVS both closed today at a new 52 week low.

Discussion in 'Casino Industry & Development' started by Mirageluvr, Aug 24, 2015.

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  1. Mirageluvr

    Mirageluvr Low-Roller

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    Clearly the concerns in China/Macau weighed heavily on both stocks today, as well as the overall market. The other casino stocks didn't fare much better. I have to wonder if this will lead the casino companies to push more offers/comps in order to fill their LV resorts during the slower 4th quarter? Thoughts? Thanks.
     
  2. Nevyn

    Nevyn VIP Whale

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    They won't be changing offers based on stock price, especially not when the dip is part of a wider trend.

    Now if people losing money on falling stocks and/or saving because the market has them worried leads them to cancel Vegas plans, on the other hand, that may help.

    But you'll need to see that softening in demand first.
     
  3. Mirageluvr

    Mirageluvr Low-Roller

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    I think the falling demand/revenues will occur in Macau, as a result of China's economic slowdown, which has negatively impacted their stock market. IMO, the US gaming companies in Macau will need to make up the revenues elsewhere, and Vegas is the primary driver of their US revenues. As you mentioned, a falling stock market and a lagging US economy could also add additional pressure to US gaming companies. They need to market Vegas and get customers into their resorts. Incentives and comps are a big part of that campaign.
     
  4. Mirageluvr

    Mirageluvr Low-Roller

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    Both stocks closed a new 52 week low today, as economic concerns, both here and abroad continue to spook investors. I have to believe boardrooms are discussing way to maximize revenues, and fill their rooms. Cost cutting for many of these gaming/resort companies have already ramped up over the last couple years, and more of this will begin/continue to negatively impact the guest experience.
     
  5. Nevyn

    Nevyn VIP Whale

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    @mirageluvr, they want to maximize profit.

    If they believed they could maximize profit by ramping up offers, they would do it whether their stock was up or down.

    Again, what has to change is not how badly they NEED the money, but rather how much they feel they have to do to get it. They increase offers when DEMAND for their rooms and gaming goes down.

    Companies don't sit on profit cruise control and then slam on the gas when their stock dips. At any given time they are doing all they can to maximize their return.
     
  6. dvandentop

    dvandentop VIP Whale

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    Because 2x craps.....
     
  7. Mirageluvr

    Mirageluvr Low-Roller

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    They slam on the gas when their revenues decline, and they are not able to meet the analyst's quarterly estimates. Monthly/weekly revenues in Macau are already dropping, and with a declining US stock market, there is a good chance this will impact Vegas visitor numbers. I would hope most companies are proactive in making decisions about the trends in their marketplace.

    - - - Updated - - -

     
  8. shifter

    shifter Degenerate Gambler

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    More comps?

    Are you crazy?

    These suits only know one answer when the stock goes down...

    Cut expenses!!!
     
  9. Mirageluvr

    Mirageluvr Low-Roller

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    You're probably right, shifter. :Þ
     
  10. Krh2o

    Krh2o MIA

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    LVS does a vast majority of their business in Macau( macau is bigger revenue wise then Vegas for gaming). They have a nice dividend which as a share holder I hope can be sustained. Their U.S. Business is solid, it's the Macau that is the main drag. I bought a little more the other day and plan to keep adding to my position due to their dividend which is at around 5% now. That's 2.5 times the yield of a 10 yr US treasury and in 10 years I bet LVS will be higher then it is today. If you have a long horizon, like a retirement account for someone in 30's- mid 40's LVS is attractive. Wynn has had cash issues and cut their dividend. They don't have the convention revenue that LVS has in the U.S. To help while Macau sorts itself off.
     
  11. nostresshere

    nostresshere Mr. Anti Debit Card

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  12. Mirageluvr

    Mirageluvr Low-Roller

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  13. nostresshere

    nostresshere Mr. Anti Debit Card

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    I would generally agree with this. Not sure if the Macau issue will turn around for a bit.
     
  14. Mirageluvr

    Mirageluvr Low-Roller

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    Agreed. Wynn and LVS taking the brunt of the hit due to Macau/China. It's tough to time a bottom, but I agree with you....not there yet. If the US stock market goes into correction mode, and stays down for a while, Las Vegas casinos/resorts could start to see revenues decline.
     
  15. Viva Las Vegas

    Viva Las Vegas Ramblin' Gamblin' Man

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    [youtube]S8H2FIf1oH4[/youtube]
     
  16. Packer

    Packer VIP Whale

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  17. Mirageluvr

    Mirageluvr Low-Roller

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    Has Steve had plastic surgery recently? He's not looking to good these days, and IMO, looks older than 73. Why do these guys/gals,
    screw (nice) with themselves?
     
  18. Mirageluvr

    Mirageluvr Low-Roller

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    New 52 week low for Wynn. The $258M stolen from a Macau junket operator is taking a big toll.
     
  19. zing

    zing Low-Roller

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    It seems like Wynn would be a buyout target at this price. Is Carl Icahn lurking in the weeds? What about Blackstone? Hell maybe the Caesars investors (Apollo, Paulson, Soros) can get together and engineer some kind of super merger between Caesars and Wynn. Ok, I'll put my drink down now.
     
  20. h_upmann

    h_upmann Low-Roller

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    falling_knife.png

    Just sayin'
     
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