The Macau Metro Monitor, September 15, 2011



UPWARDLY MOBILE Inside Asian Gaming

Casino Oceanus has acquired its 1st VIP room partner, CCUE VIP.  CCUE is chaired by U lo Hung, who was involved in developing AMA.  CCUE currently has 6 VIP tables on the 2nd floor at Oceanus and has plans to expand to 12 tables.  CCUE also has 6 VIP tables at L'Arc and at Altira Macau.  In early August, it opened 6 VIP tables at MGM Macau.  A financial advisor to CCUE mentioned that the VIP room at Oceanus will operate on a profit-share basis with its agents and host property rather than on a commission basis. 



Macao Dragon Company Limited has filed for bankruptcy and ceased all operations.  According to a company statement, it is no longer able to run its service due to a government passenger capacity cap that shrunk the ferry company’s passenger capacity from 1,152 to 750 on each sailing from Hong Kong to Macau, and 600 from Macau to Hong Kong.  The company was the only one of the four ferry operators that had not been issued a permit to operate night sailings.

Maritime Administration said that Macao Dragon had not officially informed the local authorities about its bankruptcy, adding that the cap on passenger capacity was a decision made based on the safety of the passengers and the capacity of the ferry terminal in Taipa.  Macao Dragon is also being pursued by the Hong Kong Marine Department for HK$1.88MM in unpaid berthing fees and passenger embarking fees.



Private home sales in Singapore fell 3.6% MoM in August, compared with a rise of 17% MoM in July.  Some 1,348 units were sold in August, excluding executive condos (ECs).  The dip comes after the government increased the income ceiling for public flats and executive condominiums in August.



LVS has accused Steve Jacobs of stealing sensitive and/or privileged documents and refusing to return it.  Justin Jones, one of the Las Vegas Sands attorneys, said in a court declaration he discussed the issue with Jacobs’ attorneys on Aug. 1 of this year and Jacobs’ counsel related that:  "Jacobs does not believe that he is bound to keep confidential those documents obtained during the course of his employment because he asserts that he did not sign any confidentiality policy or other document containing a confidentially provision. Jacobs believes that Macau data privacy laws do not prohibit him from disclosing documents in this matter and that Macau data privacy laws are being used by defendants as a 'farcical canard' to avoid disclosure of documents."  Jacobs and his defense team have previously argued against such claims. 

Did the US Economy Just “Collapse”? "Worst Personal Spending Since 2009"?

This is a brief note written by Hedgeye U.S. Macro analyst Christian Drake on 4/28 dispelling media reporting that “US GDP collapses to 0.7%, the lowest number in three years with the worst personal spending since 2009.”

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7 Tweets Summing Up What You Need to Know About Today's GDP Report

"There's a tremendous opportunity to educate people in our profession on how GDP is stated and projected," Hedgeye CEO Keith McCullough wrote today. Here's everything you need to know about today's GDP report.

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Cartoon of the Day: Crash Test Bear

In the past six months, U.S. stock indices are up between +12% and +18%.

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GOLD: A Deep Dive on What’s Next with a Top Commodities Strategist

“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney in this edition of Real Conversations.

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Exact Sciences Up +24% This Week... What's Next? | $EXAS

We remain long Exact Sciences in the Hedgeye Healthcare Position Monitor.

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Inside the Atlanta Fed's Flawed GDP Tracker

"The Atlanta Fed’s GDPNowcast model, while useful at amalgamating investor consensus on one singular GDP estimate for any given quarter, is certainly not the end-all-be-all of forecasting U.S. GDP," writes Hedgeye Senior Macro analyst Darius Dale.

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Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

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People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

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UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

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Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

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Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

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An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

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