The Macau Metro Monitor, March 14, 2012




A filing submitted to a court in Macau in January by Asian American Entertainment, an estranged former partner of LVS controlled by the Taiwanese businessman Shi Sheng Hao, who also goes by the name Marshall Hao, alleges LVS of improperly breaking off a 2001 agreement to bid for a Macau casino license and seeks compensation of 3 billion patacas, or more than US$375MM.  


In October 2001, LVS signed a letter of intent to team up with Asian American in bidding for a casino license.  Hao had recruited financial support from China Development Industrial Bank, a Taiwanese lender that had agreed to underwrite the joint bid.  Asian American submitted a formal offer to the government of Macau in December 2001 on behalf of itself and Venetian Venture Development, a subsidiary of LVS.


Asian American’s suit alleges that Venetian Venture Development violated the terms of their bidding agreement in early 2002 by going behind its back to seek a rival bidding partner.  When results of the tender process were announced by the government on Feb. 8 of that year, LVS had won — not in partnership with Asian American, but with Galaxy of Hong Kong.


Asian American had previously filed a breach of contract suit against Sands in 2007 in US federal court in Nevada, but that case was dismissed by the court in 2010.  In that 2007 suit, LVS had argued that Nevada had no jurisdiction over the case and that Asian American’s claims were void because of the statute of limitations. But on appeal, a higher court allowed some of Asian American’s claims to go ahead, sending the matter back to the lower court in 2009. The matter was ultimately thrown out by the lower court after Asian American failed to retain lawyers to press the case — effectively giving up.


It is unclear why the company has chosen to take up the case again now, in Macau.  Under Macau’s laws, LVS has two months to respond to Asian American’s suit.  Based on the timing of most civil cases, the matter would be unlikely to go to trial before 2013.



Visitor arrivals in package tours surged by 43.6% YoY to 634,993 in January 2012, attributable to the Lunar New Year holidays.  Visitors from Mainland China (424,234) increased by 34.1%, with 176,498 from Guangdong Province.  Moreover, visitors from Taiwan (60,273); Hong Kong (41,877); and the Republic of Korea (34,428) soared by 151.5%, 139.0% and 43.2% respectively YoY.  The average length of stay increased by 0.02 night to 1.5 nights. 

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

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more