Galaxy Entertainment is weathering the current financial storm by adopting a more prudent growth strategy to suit demand.  One example of this is the slowing of the construction of its HK$10 billion Cotai mega-resort.  Executive Francis Lui Yiu-tung told the SCMP that Galaxy would be patient and wait for "more solid trends developing in the market before we pull the trigger".  

For now, the company is focused on the bottom line; 2,400 gaming staff recently received an effective 13.3% pay cut.  Galaxy has also bought back US$200 million in its own bonds at a 50% discount.  Mr. Lui calls for infrastructure improvements to drive visitors to the Cotai resorts.  Many are viewing the performance of City of Dreams as a leading indicator of the future development of Cotai.



Although revenue-share numbers leaked by the DCIJ show that the Macau market was down 17% in June compared to last year, compounding worries about swine flu, cancellation of "zero-cost" tours, and the economic crisis, there is reason to be optimistic.  Despite gaming revenues for the first half of 2009 being down 12%, the half-yearly trends from 1H07 through 1H09 have followed a positive trajectory.  The first half of 2008 was an anomaly, so 1H09 saw negative growth year-over-year, but the positive long-term trend remains intact. 

Destination Macau cites commentary from "casino bosses around town" stating that the 400,000 less visitors in May 2009 didn't hurt business too much.  It is likely that this was low-end traffic made up for by VIP volumes.



Two new imported cases of the A-H1N1 flu were detected yesterday, bringing the total number of cases to fifty-six.  Nine people have been released from quarantine, having recovered from the flu.  Presently, there are one hundred-and-twenty-four people receiving domestic medical observation. 

The pandemic alert in Macau is at level 6, while the World Health Organization's pandemic alert remains at phase 6, with a moderate severity. 

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."

read more

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.

read more

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."

read more

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.

read more

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.

read more

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.

read more

Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

read more

REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

read more

Capital Brief: 5 Things to Watch Right Now In Washington

Here's a quick look at some key issues investors should keep an eye on from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.

read more

Premium insight

[UNLOCKED] Today's Daily Trading Ranges

“If I could only have one thing of the many things we have it would be my daily ranges." Hedgeye CEO Keith McCullough said recently.

read more

We'll Say It Again: Leave Your Politics Out of Your Portfolio

If your politics dictates your portfolio positioning, the Democrats and #NeverTrump crowd out there have had a hell of a week.

read more

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