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The following are some nuggets we picked up recently.  We’re here in Macau and will try to get confirmation on a lot of this stuff. 

GALAXY

  • Galaxy Macau - drop in share may be due to weakness in VIP business
  • Galaxy Macau advertising in HK has not gotten the bang for the buck spent.  Behind target.
  • Management quietly disappointed that the property has not performed to expectations

MPEL

  • Mostly good news for the most underappreciated stock in Macau in our opinion
  • Strong volumes the last couple of weeks
  • Galaxy Macau impact on CoD has been less than expected – Street consensus was that CoD was going to get crushed
  • Macau Studio City:
    • Probably needs gazetting to start construction
    • Shouldn’t be a problem if developer sticks to original 2008 plan; otherwise, any changes to the plan will require new govt approvals
    • Earliest ramp-up in construction will be end of 2011; same time for Wynn Cotai
    • Neptune likely to open at CoD in the next couple of weeks
    • Another junket operator Lao Kung also finalizing deal to open at CoD

MGM

  • Rumor that Neptune thinking about moving home base VIP room from MGM to Galaxy Macau
  • Would be a blow to MGM since Neptune was a big part of MGM’s market share surge
  • Plausible given Galaxy’s struggles – Galaxy may be willing to offer attractive package

LVS

  • Will announce name for sites 5 & 6 soon; probably Sands Cotai
  • Hotel operator for site 5 will probably be Holiday Inn or Hilton
  • Site 5 completion date: 1Q 2012 is doable but certainly by 2Q 2012.