62 gaming
A
nother month of global fi-
nancial crisis, another month
of tumbling casino stock prices.
Expectations over what the future holds
are running high as Macau’s casino op-
The waiting
erators saw stock market losses ranging
from 0.7 percent for SJM to 44.1 per-
cent for Las Vegas Sands.
There is no doubt that new travel
restrictions on mainland tourists and
worries about the health of China’s
economy have made it more difficult
for the casino players to sail their ships
through this fiscal storm.
“Although we believe the recent
game
Chinese economic stimulus package - 4
trillion RMB, around US$570 billion or
They call them “sin stocks’’ and they say they are
MOP4.67 trillion - could boost lending
and investments across the mainland
bullet-proof. but in times like these nothing is sacred
and potentially have an influence over
by Olivia Alonso
the Macau and Hong Kong SARs, we
see more capital going into infrastruc-
ture developments not casino projects’’
said an analyst from Macquarie in a
note sent to clients.
The fear of bankruptcy, suspension
of projects and dwindling opportuni-
ties to raise cash have come together to
bring shaky quarterly results. In the 30
day period which ended on November
15, shareholders saw a flurry of events,
many of them unusual. They were left
having to decide whether to hold, buy
or sell - the last option seems to have
prevailed.
Over that period, the biggest de-
crease - again - was LVS at 44.1 per-
cent, followed by MGM at 30.2 percent
and Galaxy Entertainment Group at
29.5 percent. Melco Crown plummet-
ed 17.3 percent over the same period,
Wynn fell 12.8 percent, while SJM al-
most escaped, with a slide of less than
one percent.
When we enlarge the window to
take in a three month period, LVS is
also the leading loser.
Three months ago, the group’s
stock on Wall Street was almost 10
times more than it was in mid-Novem-
ber (US$ 6.03 a share), this represents
a loss of 89 percent, the biggest among
the six Macau casino operators listed on
the stock exchange.
The second worst perforer was Gal-
axy, which lost 80 percent on the Hong
Kong Exchange and Clearings, while
the best performing stock was SJM’s
which fell 48 percent over the period
between August 15 and November 15.
december 2008
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