TICKERS: SJM, 1928.HK, LVS
EVENTS TO WATCH: UPCOMING EARNINGS/CONFERENCES
Today
- SNOW 5 p.m. earnings call
Tuesday, March 18
- Hedgeye Expert Call with Gaming REIT Attorney Ed Glazer at 11am please contact sales@hedgeye.com
Wednesday, March 19
- Galaxy Entertainment: FY 2013 annual results
- iGaming North America 2014 thru Friday, Planet Hollywood Las Vegas
Thursday, March 20
- None
Friday, March 21
- None
COMPANY NEWS
SJM – The Tycoon Club high-limit gaming salon has opened in SJM Holdings Ltd’s Grand Lisboa. The Tycoon Club, on the upper first floor of the casino, has 740 square metres of space, around 10 gaming tables and 30 slot machines.
Takeaway: Capacity constrained SJM eking out growth.
Sand China Ltd – The company announced non-executive director William Lau Wong will retire after its annual general meeting, scheduled for May 30, due to other business commitments. Also, the Company said non-executive director Jeffrey Howard Schwartz will resign at the same time also because he has other business commitments. Previously, SCL announced non-executive director Irwin Siegel would retire following the May 30th meeting.
MGM – The newly remodeled New York-New York Brooklyn Bridge Plaza Experience has opened to the public
GLPI – William J. Clifford unloaded 100,000 shares of the company’s stock on the open market in a transaction dated Tuesday, March 11th. The shares were sold at an average price of $37.42, for a total value of $3,742,000.00. Following the sale, the chief financial officer now directly owns 187,204 shares in the company, valued at approximately $7,005,174.
Takeaway: It is interesting to see such a large insider stock sale this early in the life of this new company. Apparently, no acquisitions are imminent. Maybe the stock is fairly valued...
INDUSTRY NEWS
GAMING
Macau – The junket business was rocked by further negative headlines when it was announced a Neptune Group shareholder was detained by Hong Kong authorities for suspicion of money laundering when he was found to have HKD 200 million in cash in his Hong Kong apartment. - (Macau Daily Times)
Takeaway: The 3rd related story in a week along with last week’s Dept of State request as well as the Union Pay Card story.
Macau – Joseph Lau, the billionaire chairman of real estate developer Chinese Estates Holdings of Hong Kong, was found guilty by a Macau court on Friday of corruption and money laundering in connection with the payment of a HK$20 million, or $2.6 million, to former Macau public works chief Ao Man-long in a money-for-land deal.
Takeaway: Guilty verdict was expected
Revel – 75-80 Casino employees delivered a petition to the property’s management office, announcing their desire to form a union.
Takeaway: Not sure the property can handle a higher cost structure
MACRO
Hedgeye remains negative on consumer spending and believes in more inflation. Following a great call on rising housing prices, the Hedgeye Macro/Financials team is turning decidedly less positive.
Takeaway: We’ve found housing prices to be the single most significant factor in driving gaming revenues over the past 20 years in virtually all gaming markets across the US.