MACAU MAKES THE GRADE IN JUNE

GGR came in near the middle of our projection range of HK$19.5-20.5 billion.

 

 

Gross Gaming Revenues (GGR) totaled HK$20.2 billion.  June couldn’t keep up with May (down 14% MoM) which is understandable given:  a) Golden Week in May, b) 1 fewer day in June, and c) high VIP hold percentage in May.  YoY growth was a whopping 52%, although the comparison was easier than normal.  With the World Cup in June of 2010, volumes were probably held back last year.  We won’t have the monthly detail until Tuesday or Wednesday but we think hold was fairly normal.

 

The biggest story of the month may be the disappointing early results at Galaxy Macau (GM).  We don’t yet have the breakdown between StarWorld and Galaxy Macau but we are hearing that StarWorld has barely missed a beat since GM opened.  If this is the case, the first full month of revenue at GM will have been viewed as highly disappointing.  We think VIP volume at GM may be only 60% of that at Starworld.  On the Mass side, GM seems to be attracting the lowest end customer on Cotai.  Busing has no doubt contributed to that.

 

We will certainly have more precise color in a couple of days but we think MPEL has the most EBITDA upside relative to consensus for Q2 followed by MGM Macau, Wynn Macau, and Sands China, in that order.

 

MACAU MAKES THE GRADE IN JUNE - macau june


Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

read more

Neurofinance: The Psychology Behind When To Sell A Bull Market

"Most momentum investors stay invested too long, under-reacting and holding tight after truly bad news finally arrives to break the trend," writes MarketPsych's Richard Peterson.

read more

Energy Stocks: Time to Buy the Dip? | $XLE

What the heck is happening in the Energy sector (XLE)? Energy stocks have trailed the S&P 500 by a whopping 15% in 2017. Before you buy the dip, here's what you need to know.

read more

Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more