Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Melco International Development / Event-Driven

<ul>
<li>On the 26 November, Macau’s government renewed the concession periods of the city’s six incumbent gambling concessionaires for another 10 years.</li>
<li>
<a href="https://www.smartkarma.com/entities/genting-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:3141:1" rel="noopener">Genting Malaysia (GENM MK)</a><a href="https://www.smartkarma.com/entities/genting-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:3141:1" rel="noopener"></a>, a last-minute interloper, failed in its bid to secure a license. It scored lowest under the government's bidding review. <a href="https://www.smartkarma.com/entities/mgm-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:472:1" rel="noopener">MGM China (2282 HK)</a> topped the scoresheets. </li>
<li>As with all incumbents, <a href="https://www.smartkarma.com/entities/melco-international-development-ltd" target="_blank" data-smartkarma-citation="entities:809:1" rel="noopener">Melco International (200 HK)</a> and <a href="https://www.smartkarma.com/entities/melco-crown-entertainme-adr" target="_blank" data-smartkarma-citation="entities:810:1" rel="noopener">Melco Resorts &amp; Entertainment (MLCO US)</a> eked out strong gains following the renewal. Melco's current discount to NAV is currently 20%.</li>
</ul>


On the 26 November, Macau’s government renewed the concession periods of the city’s six incumbent gambling concessionaires for another 10 years.

Genting Malaysia (GENM MK), a last-minute interloper, failed in its bid to secure a license. It scored lowest under the government's bidding review. MGM China (2282 HK) topped the scoresheets. 
As with all incumbents, Melco International (200 HK) and Melco Resorts &amp; Entertainment (MLCO US) eked out strong gains following the renewal. Melco's current discount to NAV is currently 20%.


Where Does Melco's Discount To NAV Go From Here?

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Casino Business Review LLC

Extensive experience in marketing and development in the Asian gaming market

Global Gaming and Casinos Industry

Equity Bottom-Up

Galaxy Entertainment Group / Equity Bottom-Up

<ul>
<li>In 2018, shortly after the departure of Wynn founder Steve Wynn, Galaxy bought 4.9% of his shares atUS$175. The shares have been under water. But a new player has entered.</li>
<li>Gaming, restaurant and sports entrepreneur Tillman Fertitta has just bought 6.1% of Wynn shares setting up a possible play on the shares, or a total takeover move.</li>
<li>There are three scenarios that could play bullish for Galaxy if Wynn is in play. All auger well for movement on the stock.</li>
</ul>


In 2018, shortly after the departure of Wynn founder Steve Wynn, Galaxy bought 4.9% of his shares atUS$175. The shares have been under water. But a new player has entered.
Gaming, restaurant and sports entrepreneur Tillman Fertitta has just bought 6.1% of Wynn shares setting up a possible play on the shares, or a total takeover move.
There are three scenarios that could play bullish for Galaxy if Wynn is in play. All auger well for movement on the stock.


Galaxy Entertainment Group: Its 4.5% of Wynn Shares Key if the Stock Is in Play

<ul>
<li>Billionaire US investor Tillman Fertitta has bought into what he believes is an undervalued stock as the Las Vegas market recovery speeds up.</li>
<li>Stock could now be in play as Fertitta, Wynn's ex-wife and Macau giant Galaxy now control a al of 20%  the outstanding shares.</li>
<li>Stock is up 18% since Fertitta's buy last week. It could well be in play.</li>
</ul>


Billionaire US investor Tillman Fertitta has bought into what he believes is an undervalued stock as the Las Vegas market recovery speeds up.
Stock could now be in play as Fertitta, Wynn's ex-wife and Macau giant Galaxy now control a al of 20%  the outstanding shares.
Stock is up 18% since Fertitta's buy last week. It could well be in play.


Wynn Resorts Ltd: Possible Macau Openings, Las Vegas Recovery,big Investor Takes 6.1% Position

<ul>
<li>Macau gaming companies gained this week as Hong Kong is expected to ease Covid restrictions, with Macau expected to follow suit.</li>
<li>Last week, the six incumbent Macau gaming operators submitted tenders for the gaming concessions, together with last-minute interloper, the Genting Group.</li>
<li>
<a href="https://www.smartkarma.com/entities/sands-china-ltd" target="_blank" data-smartkarma-citation="entities:182:1" rel="noopener">Sands China (1928 HK)</a> has borrowed heavily and also leads other Macau gaming plays in dividends paid out to shareholders. This may not be lost on Macau officials. </li>
</ul>


Macau gaming companies gained this week as Hong Kong is expected to ease Covid restrictions, with Macau expected to follow suit.
Last week, the six incumbent Macau gaming operators submitted tenders for the gaming concessions, together with last-minute interloper, the Genting Group.

Sands China (1928 HK) has borrowed heavily and also leads other Macau gaming plays in dividends paid out to shareholders. This may not be lost on Macau officials. 


Sands China (1928 HK): Positives And Negatives

<ul>
<li>In a surprise move, <a href="https://www.smartkarma.com/entities/genting-bhd" target="_blank" data-smartkarma-citation="entities:14210:1" rel="noopener">Genting Bhd (GENT MK)</a> - or <a href="https://www.smartkarma.com/entities/genting-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:3141:1" rel="noopener">Genting Malaysia (GENM MK)</a> - has joined the six incumbents in bidding for new casino licences in Macau.</li>
<li>The bidding process follows Macau's record low monthly gaming revenue in July after casinos were closed for 12 days in response to a Covid outbreak.</li>
<li>Casinos have re-opened, yet there is little to cheer about as business remains muted. The six winners are expected to be announced by the end of November or early December.</li>
</ul>


In a surprise move, Genting Bhd (GENT MK) - or Genting Malaysia (GENM MK) - has joined the six incumbents in bidding for new casino licences in Macau.
The bidding process follows Macau's record low monthly gaming revenue in July after casinos were closed for 12 days in response to a Covid outbreak.
Casinos have re-opened, yet there is little to cheer about as business remains muted. The six winners are expected to be announced by the end of November or early December.


Hong Kong

Galaxy Entertainment Group Limited, through its subsidiary, operates casino, hotel and other entertainment facilities in Macau. The company also manufactures sells and distributes construction materials.

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Galaxy Entertainment Group (27 HK)

Where Does Melco's Discount To NAV Go From Here?

Melco has a tendency to overshoot to the upside, therefore I'd be inclined to go Long Melco here and Short MCLO here as more positive news unfolds....

David Blennerhassett

Galaxy Entertainment Group: Its 4.5% of Wynn Shares Key if the Stock Is in Play

GEG shares do not reflect the potential value of the company's 4.5% holding of Wynn stock which could be the object of a takeover by a new holder.

Howard J Klein

Wynn Resorts Ltd: Possible Macau Openings, Las Vegas Recovery,big Investor Takes 6.1% Position

A major gaming invs has bought 6.1% of Wynn Resorts. We believe it is a prelude to either a takeover or the stock put in play. It is still...

Howard J Klein

Sands China (1928 HK): Positives And Negatives

Sands China appears fairly valued here. If I had to bet on one incumbent whose license could be lost, Sand China stands out. For that, I would...

David Blennerhassett

Genting Fancies A Flutter In Macau

Macau's China-like, zero-Covid policy affords limited visibility. In contrast, Singapore reported its highest gaming revenue quarter - April-June -...

David Blennerhassett

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