Growth and recovery continued for this hotel and casino company, not just in Las Vegas, but also in Macao, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
Thursday, October 31, MGM Resorts International (MGM) reported a loss for the September quarter of 7 cents a share. That compares with a loss of 37 cents a share in the September quarter of 2012. Excluding one-time items, the company moved into the black with earnings of 2 cents a share. That compares with a 3-cent a share loss in the September quarter of 2012. Revenue climbed 9% year over year. Cash flow rose 25% year over year. (MGM Resorts International is a member of my Jubak's Picks portfolio.)
The company's Las Vegas hotel and casino business continued its recovery. RevPAR (revenue per available room) rose 3% in the quarter. That was in line with guidance. In its conference call, the company forecast flat RevPAR in the fourth quarter, but then a pickup in the first quarter of 2014 that would continue throughout the year. The improvement is a result of a growth in convention bookings. (Convention goers pay higher room rates than leisure travelers.) The company normally has 80% of its convention target rooms booked by Halloween. This year, convention room booking was at 88% of target by Halloween.
Top Heal Care Stocks To Buy For 2015: Caesars Entertainment Corp (CZR)
Caesars Entertainment Corporation, incorporated on November 2, 1989, is a diversified casino-entertainment provider. The Company�� business is primarily conducted through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc. (CEOC), although certain material properties are not owned by CEOC. As of December 31, 2012, it owned, operated, or managed, through various subsidiaries, 52 casinos in 13 United States states and seven countries. The majority of these casinos operate in the United States, primarily under the Caesars, Harrah��, and Horseshoe brand names, and in England. In November 2012, the Company sold its Harrah's St. Louis casino to Penn National Gaming, Inc. In December 2012, the Company purchased all of the net assets of Buffalo Studios, LLC, a social and mobile games developer and owner of Bingo Blitz.
The Company�� casino entertainment facilities include 33 land-based casinos, 11 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Cleveland, Ohio, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack. The Company�� land-based casinos include nine in England, two in Egypt, one in Scotland, one in South Africa and one in Uruguay. As of December 31, 2012, its facilities had an aggregate of approximately three million square feet of gaming space and approximately 43,000 hotel rooms. In southern Nevada, Caesars Palace, Harrah�� Las Vegas, Rio All-Suite Hotel & Casino, Bally�� Las Vegas, Flamingo Las Vegas, Paris Las Vegas, Planet Hollywood Resort and Casino, The Quad Resort & Casino (formerly the Imperial Palace Hotel and Casino), Bill�� Gamblin��Hall & Saloon, and Hot Spot Oasis are located in Las Vegas and draw customers from throughout the United States. Harrah�� Laughlin is located near both the Arizona and California borders and draws customers primarily from! the southern California and Phoenix metropolitan areas and, to a lesser extent, from throughout the United States through charter aircraft. In northern Nevada, Harrah�� Lake Tahoe and Harveys Resort & Casino are located near Lake Tahoe and Harrah�� Reno is located in downtown Reno. These facilities draw customers primarily from northern California, the Pacific Northwest, and Canada.
The Company�� Atlantic City casinos, Harrah�� Resort Atlantic City, Showboat Atlantic City, Caesars Atlantic City, and Bally�� Atlantic City, draw customers primarily from the Philadelphia metropolitan area, New York, and New Jersey. Harrah�� Philadelphia (formerly Harrah's Chester) is a combination harness racetrack and casino located approximately six miles south of Philadelphia International Airport and draws customers primarily from the Philadelphia metropolitan area and Delaware. The Company�� Chicagoland dockside casinos, Harrah�� Joliet in Joliet, Illinois, and Horseshoe Hammond in Hammond, Indiana, draw customers primarily from the greater Chicago metropolitan area. In southern Indiana, it owns Horseshoe Southern Indiana, a dockside casino complex located in Elizabeth, Indiana, which draws customers primarily from northern Kentucky, including the Louisville metropolitan area, and southern Indiana, including Indianapolis. In Louisiana, the Company owns Harrah�� New Orleans, a land-based casino located in downtown New Orleans, which attracts customers primarily from the New Orleans metropolitan area. In northwest Louisiana, Horseshoe Bossier City, a dockside casino, and Harrah�� Louisiana Downs, a thoroughbred racetrack with slot machines, both located in Bossier City, cater to customers in northwestern Louisiana.
The Company owns the Grand Casino Biloxi, located in Biloxi, Mississippi, which caters to customers in southern Mississippi, southern Alabama, and northern Florida. Harrah�� North Kansas City dockside casino draws customers from the Kansas City metropolitan ar! ea. Harra! h�� Metropolis is a dockside casino located in Metropolis, Illinois, on the Ohio River, drawing customers from southern Illinois, western Kentucky, and central Tennessee. Horseshoe Tunica, Harrah�� Tunica, and Tunica Roadhouse Hotel & Casino, dockside casino complexes located in Tunica, Mississippi, are approximately 30 miles from Memphis, Tennessee and draw customers primarily from the Memphis area and, to a lesser extent, from throughout the United States through charter aircraft. Horseshoe Casino and Bluffs Run Greyhound Park, a land-based casino and pari-mutuel facility, and Harrah�� Council Bluffs Casino & Hotel, a dockside casino facility, are located in Council Bluffs, Iowa, across the Missouri River from Omaha, Nebraska. At Horseshoe Casino and Bluffs Run Greyhound Park, the Company owns the assets other than gaming equipment, and leases these assets to the Iowa West Racing Association (IWRA), a nonprofit corporation, and it manages the facility for the IWRA under a management agreement expiring in October 2024. The license to operate Harrah�� Council Bluffs Casino & Hotel is held jointly with IWRA, the qualified sponsoring organization.
The Conrad Resort & Casino located in Punta Del Este, Uruguay (the Conrad), draws customers primarily from Argentina and Uruguay. In November 2012, the Company announced that it had entered into a definitive agreement with Enjoy S.A. (Enjoy) to form a strategic relationship in Latin America. Under the terms of the agreement, Enjoy will acquire 45% of Baluma S.A., its subsidiary, which owns and operates the Conrad, and the Company will become a 10% shareholder in Enjoy upon consummation of the agreement. Upon the closing of the transaction, which is subject to certain conditions, including the receipt of all regulatory and governmental approvals, Enjoy will assume primary responsibility for management of the Conrad. Enjoy will have the option to acquire the remaining stake in Baluma S.A. between years three and five following closing. The cl! osing of ! the transaction remains subject to a number of conditions, including regulatory and governmental approvals in both Uruguay and Chile.
The Company owns four casinos in London: the Sportsman, the Golden Nugget, The Playboy Club London, and The Casino at the Empire. Its casinos in London draw customers primarily from the London metropolitan area, as well as international visitors. The Company also owns Alea Nottingham, Alea Glasgow, Alea Leeds, Manchester 235, Rendezvous Brighton, and Rendezvous Southend-on-Sea in the provinces of the United Kingdom, which primarily draw customers from their local areas. Pursuant to a concession agreement, it also operates two casinos in Cairo, Egypt, The London Club Cairo (which is located at the Ramses Hilton) and Caesars Cairo (which is located at the Four Seasons Cairo), which draw customers primarily from other countries in the Middle East. Emerald Safari, located in the province of Gauteng in South Africa, draws customers primarily from South Africa. It owsn and operates Bluegrass Downs, a harness racetrack located in Paducah, Kentucky.
The Company owns three casinos for Indian tribes: Harrah�� Phoenix Ak-Chin, located near Phoenix, Arizona, Harrah�� Cherokee Casino and Hotel, and Harrah�� Rincon Casino and Resort, located near San Diego, California. The Company manages Caesars Windsor, located in Windsor, Ontario, which draws customers primarily from the Detroit metropolitan area, Horseshoe Cleveland casino in Ohio, which it manages for Rock Ohio Caesars LLC (ROC), a venture with Rock Ohio Ventures, LLC (Rock Gaming), in which it has a 20% equity interest, and the Horseshoe Cincinnati casino in Ohio for ROC for a fee under a management agreement that will expire in March 2033. It also has a minority interest in Sterling Suffolk Racecourse, LLC (Suffolk Downs), which owns a horse-racing track in Boston, Massachusetts, and the right to manage a future gaming facility. The Company also owns ans operates a golf course on 175 acres of prime real! estate t! hrough a land concession on the Cotai strip in Macau.
Advisors' Opinion:- [By AlphaStreetResearch]
Caesars Entertainment Corporation (CZR) is a highly overvalued gaming, hotel, and entertainment company with deteriorating fundamentals on all levels in a highly competitive environment. The company's stock has seen a massive run to the upside on the coattails of other casino and entertainment companies in the space. A considerable catalyst for the push higher in these stocks is the good news coming out of Macau, but this is an area where Caesars has absolutely no exposure and will be locked out of for the foreseeable future after failing to take appropriate licensing measures. Below is our introduction into the business model, its weaknesses, and the new selling or shorting opportunity that exists for CZR after the recent appreciation in share price. Investors will soon realize that there is little upside value in this company and that there are much better opportunities in this space. The company is now amidst a major struggle from a debt standpoint with major deadlines approaching over the next year and a half. The company is in no position to thrive going forward unless major steps are taken to overhaul the company's capital structure. Caesars Entertainment has a market cap of $3.19 Billion after the stock has moved up over 225% year to date and reports its next quarter on October 31, 2013. With this in mind, we value CZR at $21.00 by year-end of 2013 and $14.00 by August 1, 2014, a decrease of 40% from current levels. We will later highlight:
- [By John Kell var popups = dojo.query(".socialByline .popC"); popups.forEach(func]
Shares of Global Cash Access Holdings Inc.(GCA) traded 9% lower to $7.22 premarket after the company disclosed it would no longer be providing payment services for casino operator Caesars Entertainment Corp.(CZR)
Top 5 Casino Companies To Watch For 2014: Scientific Games Corp (SGMS)
Scientific Games Corporation (Scientific Games), incorporated on July 2, 1984, is a global supplier of solutions to lottery and gaming organizations worldwide. The Company�� products and services include instant lottery games, lottery gaming systems, terminals and services, and Internet applications, as well as server-based interactive gaming machines and associated gaming control systems. The Company reports its operations in three segments: Printed Products Group, Lottery Systems Group and Diversified Gaming Group. Printed Products Group is a provider of instant lottery tickets in the world. The Company�� Lottery Systems Group is a provider of customized computer software, software support, equipment and data communication services to lotteries. Its Diversified Gaming Group provides services and systems to private and public operators in the wide area gaming industry, including server-based gaming machines and sports betting systems and services. On September 23, 2011, the Company acquired Barcrest Group Limited. During 2011, the Company launched MDI Interactive, a content services powerhouse dedicated to delivering gaming solutions for the Internet, mobile and all digital things. In October 2013, the Company announced that it has completed the acquisition of WMS Industries Inc.
Printed Products
Printed Products segment is primarily consists of instant ticket lottery business. The Company generates revenue from the manufacturing and sale of instant tickets, as well as the provision of value-added services, such as game design, sales and marketing support, specialty games and promotions, inventory management and warehousing and fulfillment services. It also provides lotteries with cooperative service programs (CSPs), to help them manage and support their operations. The Company also provides licensed games, promotional entertainment and Internet-based services to the lottery industry. It operates six instant ticket printing facilities across five continents.
!The Company provides lotteries with access to some entertainment brands on lottery products through its subsidiary MDI Entertainment LLC (MDI). The Company�� licensed entertainment brands include Harley-Davidson, Major League Baseball, Monopoly, National Basketball Association, The Price is Right, Wheel-of-Fortune and World Poker Tour. It also provides branded merchandise prizes, advertising, promotional support, turnkey drawing management services and prize fulfillment programs. In addition, it offers lotteries a Web-based platform called Properties Plus, which features players clubs, reward programs, second chance promotional websites, interactive games and, subject to applicable law, a subscription system that enables players to purchase lottery games securely over the Internet. The Company owns 20% interests in LNS ad Northstar, and 49% in CSG.
Lottery Systems
The Company is a provider of customized computer software, software support, equipment and data communication services to lotteries. In the United States, the Company typically provides the necessary equipment, software and maintenance services pursuant to long-term facilities. Internationally, it typically sells terminals and/or computer software to lottery authorities and may provide ongoing fee-based systems and software support services. The Company�� lottery systems business includes the supply of transaction-processing software, draw lottery games, keno, point-of-sale terminals, central site computers and communication platforms as well as ongoing operational support and maintenance services. The Company is the instant ticket validation network provider to the China Sports Lottery.
The Company has lottery systems operating in Argentina, Australia, Canada, China, France, Germany, Hungary, Iceland, Israel, Latvia, Mexico, Norway, the Philippines, Spain, Sweden and Switzerland. In addition, it provides video lottery central monitoring, and control systems and networks primarily to lotteries an! d gaming ! regulators. It also provides software, hardware and support for sports wagering systems. The Company has 50% interest in Guard Libang, a provider of instant ticket activation and validation and inventory management systems and services.
Gaming
The Company is a provider of server-based gaming machines and systems and other products and services to operators in the gaming industry. The Company�� Gaming segment includes The Global Draw Limited (Global Draw), a supplier of server-based gaming machines and systems, and game content primarily to bookmakers that operate licensed betting offices (LBOs) in the United Kingdom, and to gaming operators outside the United Kingdom. The Gaming segment also includes Barcrest Group Limited (Barcrest) and Games Media Limited (Games Media), suppliers of gaming machines, systems and game content to pubs, bingo halls and arcades in the United Kingdom and continental Europe.
The Company provides its Gaming customers with gaming machines, remote management of game content and management information, central computer systems, secure data communication and field support services. It develops its own game content, and supplements its offering with content from third parties. As of December 31, 2011, the Company installed approximately 23,100 LBO gaming machines in the United Kingdom, which included approximately 8,000 LBO gaming. As of December 31, 2011, it had an installed base of approximately 6,100 gaming machines in its United Kingdom pub, bingo hall and arcade business, and installed approximately 6,500 gaming machines outside of the United Kingdom. During 2011, the Company owned a 50% interest in Sciplay, a joint venture with Playtech Services (Cyprus) Limited. It also owns 29.4% interests in RCN, and 20% in Sportech.
The Compnay competes with Pollard Banknote Limited, GTECH, BI Worldwide Ltd., Alchemy3, LLC, ePrize, LLC, GTECH, Pollard, Intralot Technologies, Inc., International Lottery and Totalizator Systems, Inc.! , Inspire! d Gaming Group Limited, Danoptra Ltd, Sceptre Leisure plc, Games Warehouse Limited, International Game Technology, Lottomatica, Bally Technologies, Inc., Inspired, Aristocrat Leisure Ltd, Novomatic AG, Multimedia Games, Inc., WMS Industries Inc., Konami Digital Entertainment, Inc., Amaya Gaming Group, Inc., Cryptologic Ltd., IGT, Microgaming Software Systems Ltd., Net Entertainment NE AB, NYX Gaming Group, OpenBet Technology Ltd. and Playtech Limited.
Advisors' Opinion:- [By Travis Hoium]
What: Shares of Scientific Games (NASDAQ: SGMS ) jumped 10% in late trading today after signing an important customer.
So what: The company announced that it has signed a contract extension to provide lottery gaming and instant ticket services for the Oklahoma Lottery. This was actually disclosed earlier this year,�but investors bid up shares leading up to the announcement and nearly five times the three-month average volume of shares traded hands today. �
- [By Stock Maelstrom]
We are likely approaching the last time I will be reporting on WMS Industries (WMS), the former Williams Electronics. It has agreed to be acquired by Scientific Games (SGMS) for $26 per share, plus the assumption of WMS' modest debt. The deal is scheduled to close by the end of this year. On its own, WMS is having a dismal fiscal year, which ends June 30. For this year, the company, no doubt with distracted management, earnings are likely to end at about $0.90 per share, compared with fiscal 2012's $1.31 per share. Helping drive earnings lower are additional measures the company is taking to drive up revenues, which remain well below last decade's peak. WMS' stock has flat lined the past few months at within three percent of the $26 price. There is virtually no upside, though there is downside if the deal collapses. I see no reason to get invested in WMS.
Top 5 Casino Companies To Watch For 2014: NanoTech Entertainment Inc (NTEK)
NanoTech Entertainment, Inc. (NanoTech), formerly Aldar Group, Inc., is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. The Company operates as a manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. As of June 30, 2009, the Company�� products included MultiPin, Xtreme Rally Racing, NanoNET Online System, Pinball Wizard, Mot-Ion Adapter, Opti-Gun Adapter and Retr-IO Adapter. In April 2009, the Company acquired NanoTech Entertainment, Inc. In July 2013, NanoTech Entertainment Inc completed the acquisition of Clear Memories, Inc. of Napa California. Effective August 9, 2013, NanoTech Entertainment Inc acquired Worldwide Global Entertainment, a developer of prepackaged software.
The Company�� physics engine and motion sensors allow MultiPin to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from. Xtreme Rally Racing is a driving machine that features three modes of game play: Xtreme Off-Road-Race Head to Head against other players and the computer to checkpoints while driving anywhere on the map with no preset course; Timed Rally Stages-Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses, and Xtreme Stadium Racing-Custom Stadiums designed for Xtreme racing, including a figure eight multi-lap course with huge jumps. NanoNET Online System is remote operator control of machines, including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net.
The Company has created the input device designed to give the pinball players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin product it has built a controller that lets people play pinball using traditional controls and! the ability to shake and nudge the table. The Mot-Ion adapter is a universal serial bus (USB) adapter that allows do it yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. The OptiGun adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. The Retr-IO adapters provide a standard JAMMA interface for USB based systems.
Advisors' Opinion:- [By Bryan Murphy]
Call them hunches (because that's all they are), but now would be a great time to get out of a NanoTech Entertainment, Inc. (OTCMKTS:NTEK) position and/or get into an ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). NTEK looks like its reached its maximum potential - for the time being - while ACAD looks like it's ready to start rolling higher again.
Top 5 Casino Companies To Watch For 2014: Pinnacle Entertainment Inc.(PNK)
Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Dan Radovsky]
Pinnacle Entertainment (NYSE: PNK ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA ) , Pinnacle announced today.
- [By Travis Hoium]
What: Shares of Ameristar Casinos (NASDAQ: ASCA ) and Pinnacle Entertainment (NYSE: PNK ) fell as much as 11% today after the government brought into question the merger of the two companies.
- [By Ben Levisohn]
Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.
BloombergFirst Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:
When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.
Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:
With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.
He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:
As for WYNN, we believe near-term estimates continue to take a back seat to capital return
- [By Sean Williams]
Time to make the switch
If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK ) near its 52-week high.
No comments:
Post a Comment