THE MACAU METRO MONITOR

WYNN MACAU IPO PRICED AT TOP OF RANGE - SOURCES reuters.com

STRONG WYNN MACAU IPO PUTS PRESSURE ON DEBUT, RIVALS reuters.com

Despite a recent “glut of Asian stock deals”, Wynn Resorts sold 1.5 billion Hong Kong listed shares in its Asian IPO at the top of its price range to raise $1.63 billion.  The IPO’s range was HK$8.52 to HK$10.08, with Wynn selling 25% of the business to the public.  Some commentators are see valuations as being too high and believe that a strong debut will be difficult for Wynn.  Wynn’s successful sale will now put pressure on Las Vegas Sands ahead of their public offering at the end of November or early December. 

 

 

 

REVENUE FROM CASINO TAXES FALLS 9.5% macaunews.com.mo

The Finance Services Bureau announced that the government’s income from direct gaming taxes fell 9.5% in the first eight months of the year when compared to the same period in 2008.  Gaming taxes accounted for 73.6% of the government’s total receipts during the same period, as compared to a share of 80.2% in the same period of last year. 

 

 

 

DEVELOPER GOES BACK TO BASICS scmp.com

LVS’ halting of their construction projects on Macau’s Cotai Strip brought the city’s explosive construction activity to a standstill.  Some real estate funds, such as Telok Macau Real Estate Fund, are now focusing on going “back to basics” and building residential projects rather than the large “glamour projects” that typified the construction boom of a few years ago. Genevia Lam, a VP at Telok, says that the developers at the time ignored the reality that the luxury apartments, measuring from 1,200 to 2,700 square feet and priced at upwards of HK$3 million each, were “beyond the reach of the general public.”

 

To get back to basics, Telok Macau Real Estate Fund is building a residential project, scheduled for completion in October 2010, where units will be prices between HK$1.3 million and HK$3.5 million or at an average of HK$3,000 per square foot.  Commentators are predicting that mass residential prices in Macau will rise to between HK$3,500 and HK$4,000 per square foot from the present average of HK$2,800 per square foot.  Residential prices in Macau are said to be 30% below the market peak of December 2007.

 

 

 

CAUSE FOR CELEBRATION scmp.com

Tomorrow is the 60th anniversary of the establishment of the People’s Republic of China.


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

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"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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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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