Posts Tagged ‘ Las Vegas Sands ’

Caesars (CZR) IPO at $9 – Company Returns to the Public Markets

February 8, 2012

Caesars PalaceCaesars will launch their IPO under the ticker CZR. The company is offering 1,811,313 shares to the public priced at $9. Credit Suisse and Citigroup are the joint-book runners. Caesars operates under the Caesars, Harrah’s, and Horseshoe brand names. Caesars also owns the World Series of Poker and London Clubs. When the stock commences trading at $9 the market cap will be $1.1 billion and the enterprise value will be $22 billion as the company will still have a heavy debt load. Caesars valuation is down sharply from peak valuations in 2007. John Paulson has been one of the private investors.

Caesars comes public in a period of low interest costs where Vegas is starting to slowly recover. There is an old adage among Las Vegas gamblers: “don’t game where they don’t own the house”. It will be interesting to see if Caesars will maintain their levels of customer service in a period where expenses will be more scrutinized in the light of the public markets.

Casino Market Capitalizations:

Las Vegas Sands:              $42B
Wynn Resorts:                 $14B
MGM Resorts:                 $7B
Caesars:                         $1.1B

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Macau Gambling Revenues Grow 39%

October 4, 2011

china modelThe Macau gaming sector has been demolished as fears of credit tightening and distress amongst the junket operators mounts. Macau’s Gaming Inspection and Coordination Bureau just released that revenues for the month of September grew at a 39% rate. This is another data point which demonstrates that China Hard Landing fears are just that, fears. Contrast the strong growth to the Macau geared gaming stocks which have seen rapid declines as investors lost confidence in the space. Here are number of leaders and what the stock prices have sold off since September 1st. This may be an opportunity for investors willing to make a wager.

Wynn Resorts (WYNN) down 24%
Wynn Macau (1128.HK) down 35%
Las Vegas Sands (LVS) down 18%
Melco (200.HK) down 49%
Shun Tak Holdings (242.HK) down 40%
Galaxy Entertainment (27.HK) down 53%

*note that Shun Tak is the Macau ferry operator and also involved in Macau real estate

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