Wynn ResortsCaesars Entertainment , and Foxwoods are battling over a new gaming license in Boston. But is this the right move, considering the competition in regional gaming across the U.S.? In the following video, Erin Miller sat down with Travis Hoium to see who’s making the right moves in Boston and who’s biting off more than they can chew.
Boston would be a nice addition, but Macau has grown to five and a half times the size of the Las Vegas Strip, and Wynn Resorts is perfectly positioned to capture the opportunity in the region. Is that reason enough for investors like yourself to consider investing in Wynn right now? The Motley Fool answers this question and more in our most in-depth Wynn Resorts research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.
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The first quarter was a great one for investors. The tech-heavy Nasdaq rose by more than 8 percent, and the S&P 500 fared even better, soaring 10 percent.
Naturally, there are companies that performed better than that. In fact, a handful more than doubled over the past three months. Wondering which companies you’ll want to kick yourself for missing out on? Let’s go over a few of them.
Wall Street‘s biggest winner was Caesars Entertainment, even though the casino operator isn’t exactly hitting the jackpot, financially speaking. Revenue declined in its latest quarter, and Caesars isn’t expected to turn a profit again until 2016 at the earliest.
So why are investors wagering on Caesars if it seems to be a bad bet fundamentally? Online gambling: Caesars is well positioned to cash in if revenue-hungry states free up restrictions on Internet-based gambling.
In the meantime, Caesars is investing in its properties, opening the Nobu Hotel and Restaurant at Caesars Palace in February and hoping to open the Linq entertainment district by the end of the year.
Consumer Portfolio Services (CPSS) — Up 118 percent
The market has rewarded risk-takers so far in 2013, and Consumer Portfolio Services is no stranger to risk.
The specialty finance company buys retail installment sales contracts from auto dealerships that have a hard time lining up traditional financing for their customers. We’re talking about car buyers with crummy credit scores.
This is a risky business, but it’s paying off for the financier at a time when auto sales are booming and the economy is showing signs of life. Plus, Consumer Portfolio Services knows that the loans are secured by late-model used vehicles that can be reclaimed from deadbeat drivers.
Consumer Portfolio Services posted better-than-expected quarterly results in February. Revenue climbed by 11 percent, and adjusted earnings of $0.16 a share drove past the pros parked at $0.12 a share.
There’s been a dark cloud over solar energy for investors lately, but even so, SunPower has been a shining star.
Unlike most solar firms, which are based out of China, SunPower is a sun-loving Californian. Many of its deals for solar panels and systems stem from homebuilders, schools, businesses, and utility companies in this country. SunPower is also profitable, at least on an adjusted basis. With oil and gas prices still too high for comfort, don’t be surprised if solar energy bounces back.
No one’s laughing at the company behind the short-lived Qwikster fiasco these days. Netflix has been on fire since it bottomed out last summer, more than tripling in that time. A surge in streaming customers and a surprisingly …read more Source: FULL ARTICLE at DailyFinance
Katrina Lane has achieved at a high-level for a long time. She has a Ph.D. in Experimental Physics from Cornell, she spent seven years as a consultant at McKinsey & Company, and then she became a marketing executive at multiple companies, ending up as the vice president of Channel Marketing at Caesars Entertainment. During her time in Marketing, she collaborated with IT departments in developing data driven marketing strategies, and implementing sophisticated customer relationship marketing (CRM) and business intelligence systems. She was so knowledgeable, in fact, that she was asked to take over IT as Caesars’ senior vice president and chief technology officer, the senior-most information technology role in the company. …read more Source: FULL ARTICLE at Forbes Latest
Today, the Motley Fool‘s Consumer Goods Analyst Isaac Pino, and Motley Fool contributor Matt Thalman discuss one sock to sell today.
Shares of Caesars Entertainment are up more than 56% in just the last month. The likely culprit for the massive run-up is the increased attention the company has received due to the legalization of gambling online in certain states over the past few months.
While Caesars could possibly see increased revenue from online gambling, the company has a massive pile of debt, and limited growth options besides online.
Some of the casinos that have also aligned themselves to benefit from online gambling, but have better growth opportunities than Caesars, are MGM Resorts International and WYNN Resorts . One casino which hasn’t laid any bets on the Internet, but still has solid growth ahead of itself, is Las Vegas Sands .
More foolish insight
For many companies, successfully capitalizing on a booming Chinese economy is like winning the jackpot. That’s indeed the case for gaming company Las Vegas Sands, which made a big bet on Macau gaming about a decade ago that’s paid off in spades. The company is now looking to spread its empire further; but will it be able to replicate its prior successes? Learn about all these opportunities, and the risks they pose, in our brand new premium report on Las Vegas Sands. Be sure to claim your copy today by clicking here.
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Wynn Resorts is taking another swing at the Boston gaming market, proposing a $1.5 billion resort in Everett, Mass. The lot is an old Monsanto Chemical site on the river just north of downtown Boston. What we know right now is that the resort would be called Wynn Everett, it would have about 550 hotel rooms, water taxis to the airport and downtown, and according to Steve Wynn it will be family-friendly.
This isn’t the first attempt at gaming in greater Boston for Steve Wynn. A plan to build near Foxboro Stadium was shot down by residents and he had to quickly regroup to submit an application for this new resort by the Jan. 15 deadline.
The other big competing bid is coming from Suffolk Downs and Caesars Entertainment . The group wants to build a casino at Suffolk Downs in East Boston, a similar distance to downtown as Wynn’s proposal. Like Wynn, this is partly a revitalization project to bring more traffic and excitement to Suffolk Downs.
A third bid for Boston gaming will come from the owners of Foxwoods Resort & Casino and David Nunes. The project would be located in Milford, but little else is known publicly at this point.
A big market waiting to be tapped? The expansion of gaming in the U.S. has piqued the attention of Las Vegas‘ normal residents. Las VegasSands built a casino in Bethlehem, Pennsylvania that has helped drive the state into the No. 2 position nationally, making a tidy profit in the process. Boston may be even more lucrative the proposed sites so close to the city.
The state gambling commission isn’t expected to award the casino license until February, so it’ll be a long wait for those who applied. For Wynn, the resort would be an incremental positive, but the big prize is in Macau. At Caesars, this would be a highlight in the company’s expansive non-Las Vegas properties, but I’m not sure how the company will fund another billion-dollar project with its current debt load.
Macau has grown to five-and-a-half times the size of the Las Vegas Strip, with $33.6 billion of gaming revenue in 2011, and Wynn Resorts is perfectly positioned to capture the opportunity in the region. Is that reason enough for investors to consider investing in Wynn right now? The Motley Fool answers this question and more in our most in-depth Wynn Resorts research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.
News yesterday that Kirk Kerkorian has intentions to raise his stake in MGM Resorts isn’t something investors should sweep under the rug before remembering what he has meant to the company over the years. Kerkorian isn’t as well known as Steve Wynn of Wynn Resorts, or Sheldon Adelson of Las Vegas Sands, but he has played a similar visionary roll in MGM‘s history.
Kerkorian began his dealings in Las Vegas in 1962 when he bought the land that Caesars Entertainment’s flagship casino Caesars Palace sits on. When he sold the land to the company, he ended up building MGM Grand, and naming it after the MGM movie studio, which he also owned. Decades later, Kerkorian was behind the merger of MGM and Mirage, which was the company Steve Wynn built, bringing the Mirage, Bellagio, and Treasure Island into MGM.
Bullish on economy Kerkorian last tried to up his stake in MGM in 2006 when the economy and markets were going bonkers. After the financial collapse, he backed off MGM, but now that he’s on board, I think it’s a strong sign that one of Las Vegas‘ biggest investors is bullish on the economy as a whole and, therefore, Las Vegas.
Kerkorian also has seats on the board, meaning he has insider access to MGM‘s financials. Insider buying is often a very bullish sign for a stock, because insiders know things about a company’s operation that goes beyond what outside investors can know.
What this means for gaming stocks Before you go out and buy a basket of gaming stocks, it’s important to understand the difference between MGM and other companies. Wynn and Las Vegas Sands are Asian-centric so, if Kerkorian is bullish on MGM, it doesn’t really mean anything for them. Caesars is in a similar position to MGM with high exposure to Las Vegas, but instead of having exposure to Macau, like MGM does, it has exposure to regional gaming in the U.S. If you’re bullish on Las Vegas, MGM is the way to go, not Caesars.
A deep dive into MGM Resorts
When MGM Resorts began constructing the CityCenter in Las Vegas, it was an audacious plan that seemed like a sure bet with its prime location in the center of The Strip. But Las Vegas hit a rough patch during the Great Recession and has yet to fully recover, so MGM has since turned its attention to a new market in Macau. This Chinese gaming enclave now holds the key to the company’s future, and a new resort on Cotai may relieve the company from crushing debt. For expert analysis on whether this former high-flying stock can regain its form on the back of a growing presence in Asia, you’re invited to check out The Motley …read more Source: FULL ARTICLE at DailyFinance
The Dow Jones Industrials again eked out another record close, finishing higher by five points and making it seven days in a row that the average has finished at new all-time highs. At this point, the market seems like it’s heading higher based solely on pure momentum, as some of the support from favorable economic data has tapered off, and macroeconomic concerns are slowly rearing their heads again.
But a look at seven winning stocks from today should give you a sense of where the strength in the market is coming from:
IBM was the Dow’s biggest percentage gainer, rising almost three-quarters of a percent to hit its own record high. IBM has the largest impact on the Dow because of its high share price, and as Fool contributor Anders Bylund discussed earlier today, IBM‘s extensive buybacks have historically supported its earnings as it strives to reach its $20-per-share earnings goal by 2015.
Caesars Entertainment jumped another 9%, setting a new 52-week high as investors continue to anticipate the positive impact of online gaming in New Jersey. The debt-ridden company has seen its shares triple just since November on hopes that the new opportunity will reverse its long spell of underperformance compared with more internationally focused rivals.
Netflix soared 6% as the company announced that it will integrate with Facebook to share their opinions of favorite shows and movies. The move emphasizes the importance of social features in every facet of people’s lives.
VMware and EMC climbed 8% and 2%, respectively, as they announced a plan to spin off VMware’s Cloud Foundry and EMC‘s Greenplum services into a separate company to be called Pivotal. VMware also gave favorable guidance on revenue, which also helped boost its shares.
National Financial Partners jumped 10% in the latest example of the importance that mergers and acquisitions are playing in the bull market. The company said that it may look for a buyer, having gotten interest from several private-equity firms.
Silver Spring Networks represented the IPOmarket, coming public at $17 per share and rising 29% in its first day of trading. IPOs haven’t all been positive lately, but if they revive, then it could push the market even higher.
Anywhere you look, you can find signs of strength in the market. The Dow might not set records every day, but as long as that overall strength persists, stocks should be able to stay near their highs.
Netflix has recovered from most of its losses, but can the company fend off competition and retain its first-mover advantage? We’ve released a brand-new premium report on Netflix that answers that question, showing you the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We’re also offering a full year of updates as key newshits, so make sure to click here and claim a copy today.
The north end of the Las Vegas Strip may be getting a new resident long before anyone expected. Boyd Gaming has sold its Echelon project to Genting Group, a Malaysian company with a web of gaming, hospitality, and real estate holdings worldwide. The company paid $350 million for the 87-acre site, the former home of the Stardust hotel.
This ends Boyd’s attempt to make a splash in Las Vegas, down the street from Wynn Resorts and Las Vegas Sands , the two resorts that brought the north end of The Strip to a new level. Boyd had planned a $4.8 billion resort with 5,000 rooms, a 140,000-square-foot casino, and another 300,000 square feet of shopping. But now Genting will take its shot in Las Vegas.
What the new neighbor will look like Genting’s resort will be branded similarly to Resorts World Sentosa, one of just two casino resorts in Singapore along with Las Vegas Sands‘ Marina Bay Sands. The company says the resort will be called Resorts World Las Vegas, and phase 1 will include 3,500 rooms, 210,000 square feet of dining, and a 175,000-square-foot casino among the 8 million square feet. The cost will be a minimum of $2 billion but could be $7 billion by the time the entire project is complete.
This is the most ambitious project in Las Vegas since MGM Resorts built CityCenter at the bottom of the financial crisis. CityCenter and Cosmopolitan have been financial disasters, and Genting is taking a big risk in the new resort. The good news is, it’s getting a great deal on the property.
A steal for Genting Genting already opened a casino in New York in 2011 and has been trying to get into the U.S. gaming market in Miami as well. But Las Vegas is still the country’s largest gaming market, and for just over $4 million an acre the company is getting a steep discount to Strip sales before the financial crisis. El-Ad Properties bought the New Frontier and the 34.5 acres it sat on for $1.2 billion in 2007, a whopping $33 million per acre. It even appears as if the company will use the abandoned construction Boyd left behind in its new resort, saving even more money.
What it means for Las Vegas The good news for other casino operators is that Las Vegas will have a new resort sometime around 2016. This will revitalize interest in the city and bring more foot traffic to the north end of The Strip.
The bad news is that it will add more hotel rooms, gaming, and slot capacity to an area that could only fill 84% of rooms last year and already has enough gambling areas.
This also adds more rooms to the upper end of the market, pressuring prices there, and making the lower end look even less attractive. For MGM Resorts and Caesars Entertainment , which together own most of …read more Source: FULL ARTICLE at DailyFinance
MGM Resorts can’t seem to catch a break. Macau is growing, but MGM‘s resort is on the wrong side of town. New Jersey is going to allow online gaming, which will be great for operators there, but MGM was kicked out of New Jersey because of its ties to Pansy Ho in Macau. Finally, just as Las Vegas starts to slowly return to revenue and profit growth, Genting Group decides to build another massive resort and suck the air out of MGM‘s sails.
Las Vegas isn’t what it used to be In 2007, Las Vegas Strip gaming revenue peaked at $6.83 billion and MGM looked like one of the big winners in the industry. Last year, the region gained 2.3% from a year before to reach $6.21 billion in gaming revenue, still well below the peak. The problem is exacerbated by the fact that CityCenter opened in 2009 and The Cosmopolitan opened in 2010, spreading both gaming and room revenue among even wider supply. The competition has shown on the income statement as recently as the last quarter.
Fourth-quarter revenue fell $2.3 million to $2.3 billion, and wholly owned domestic resorts saw a $10.0 million drop in revenue. The only good news is that the company was able to squeeze an extra $15.2 million in EBITDA from wholly owned domestic resorts during the year.
Las Vegas isn’t growing quickly, and MGM and Caesars Entertainment are struggling under heavy debt loads built during the financial crisis. They would be seeing a light at the end of the tunnel because of increased traffic and gaming if it weren’t for the recently announced sale of an 87-acre strip of land to Genting Group by Boyd Gaming . Genting is planning to build a $2 billion-plus resort on the north side of The Strip, with another 5,000 rooms and 140,000 more square feet of gaming. This will grab a lot of the upside in Las Vegas from MGM and Caesars, just as they’re starting to get back on their feet.
Lagging behind in Macau MGM is definitely happy about its investment in Macau, but the Macau Peninsula isn’t growing as quickly as its neighbors to the south on Cotai. MGM‘s Macau revenue grew just 2% to $731 million from a year ago, which actually outperformed Wynn Resorts , its Macau Peninsula neighbor. Operating income was up 8% to $83 million in the quarter.
The big prize for MGM is its Cotai property, which will hopefully open in the middle of 2016. The company recently broke ground on the resort with 1,600 hotel rooms, 2,500 slot machines, and 500 table games next to Melco Crown‘s City of Dreams and Las Vegas Sands‘ Sands Cotai Central. Both companies have been big winners in Macau recently as Cotai has grown and mass-market play has trended toward Cotai, so the resort should be a big hit for MGM. …read more Source: FULL ARTICLE at DailyFinance
