The biggest growth opportunity Las Vegas Sands (NYSE: LVS) has had in more than a decade has now been abandoned. On Tuesday night, the company sent out a press release that said it was abandoning its pursuit of an integrated resort in Japan. The move follows years of speculation and delays; Japan still hasn't set concrete rules for obtaining or running a casino in the country.
Coronavirus has ravaged hotel employment levels, but the leader of one of the hospitality industry’s largest unions still sees opportunity for the labor movement in the ongoing crisis. Roughly 98 percent of Unite Here’s 300,000 members across the U.S. and Canada have lost their jobs due to coronavirus-related shutdowns and the downturn in travel. Unite […]
Sheldon Adelson, the CEO of Las Vegas Sands (NYSE: LVS), made clear last month that the resort company was in the market for an acquisition. It would have to be the right target in the right market, namely Asia, and be a resort operator that could complement Sands' own operational attributes. John DeCree, an analyst at the boutique investment bank Union Gaming, thinks Wynn Resorts (NASDAQ: WYNN) would be the perfect target for Adelson.
Wynn Resorts' (WYNN) Wynn Las Vegas is all set to welcome guests, with extensive safety measures in place.
Wynn Resorts is going all out for the ALL IN Challenge, the celebrated fundraiser started by Michael Rubin, Founder and Executive Chairman of Fanatics, that is dedicated to fighting food insecurity in the wake of COVID-19. Challenged by Rubin himself, Wynn Resorts CEO Matt Maddox created the most exclusive Wynn Las Vegas VIP package ever produced. To increase donations the package is available as an auction item as well as a sweepstakes item, for two winners in total.
Wynn Resorts (NASDAQ: WYNN) announced Thursday that its flagship property in the gambling Mecca, Wynn Las Vegas, is set to reopen next Thursday, June 4. This will be a full reopening, Wynn said. Wynn said it has concocted a "comprehensive" health and safety plan to protect its guests and the resort's visitors, which it claims is "now considered the gold standard in the hospitality industry."
Nightclubs have now lost more than $225 billion due to the coronavirus lockdown, according to one trade group.
[Editor's Note: "Even as Penn National Gaming Stock Rebounds, Consider Other Casino Plays" was originally published April 17, 2020. It is regularly updated to include the most relevant information.]Source: Jeffrey J Coleman / Shutterstock.com Should you buy Penn National Gaming (NASDAQ:PENN) stock? Shares have skyrocketed in recent days. With many states allowing casinos to reopen after the novel coronavirus shutdowns, investors are betting on a quick rebound. But, who's to say we'll see a V-shaped recovery at the gaming tables?Casino stocks offer high risk, but high potential returns. Yet, Penn National may not be your best option. Firstly, the company mostly leases the real estate under its casinos. This may have been a smart financial engineering move. But it leaves them fewer liquidity options relative to peers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecondly, shares trade at a premium to stronger rivals like Las Vegas Sands (NYSE:LVS) and MGM Resorts (NYSE:MGM). This could make them better ways to play a potential industry rebound, as might VanEck Vectors Gaming ETF (NASDAQ:BJK), which holds all four names in its 42-stock exchange-traded fund portfolio.Also, who knows if the gaming industry will fully recover once the pandemic fades? Given the high-fixed costs of the gaming industry, even a 20% decline in revenue could mean bad news. Especially for weaker names like Penn National.Considering these factors, it may be better to skip out on this "too hot to touch" regional casino play. Let's dive in, and see why PENN stock isn't your "best bet." Surviving CoronavirusCan Penn National survive the coronavirus? When the pandemic first hit America, Wall Street's answer was a resounding "no" as shares fell from above $39 in February to as low as $3.75 in March. Yet, with many states allowing casinos to reopen, shares have rebounded nearly eight-fold, and now trade just under $30 per share.Will shares continue to climb? It's possible. As this Seeking Alpha contributor recently wrote, half of the company's casinos are set to reopen by May 31. This includes properties in Louisiana, Missouri, and Mississippi. Yet, these states are imposing strict social distancing guidelines. This could mean things won't return to 100% for quite some time.But, there's another big risk specific to PENN stock. The company leases, not owns, most of its properties. In fact, the company was a pioneer in the casino REIT (real estate investment trust) trend.In 2013, the company spun off most of its real estate as the first casino REIT, Gaming and Leisure Properties (NASDAQ:GLPI). This transaction allowed them to realize the underlying value of its property. But while this boosted valuation, it left them exposed to heavy lease liabilities.As our own Matt McCall wrote on April 3, Penn National carries $8.5 billion in lease liabilities on its balance sheet. In 2020 alone, the company must make $900 million in lease payments. This wouldn't be a problem if their casinos were generating cash flow. But how about now, when its casinos are sitting idle?Yet, the stock's current valuation doesn't reflect this weakness. In fact, shares now trade at a premium to peers. Richly Priced Relative to RiskThe recent rally in PENN Stock has made shares richly priced. The company's enterprise value/EBITDA (EV/EBITDA) ratio now stands at 14.8. That's a premium to the EBITDA multiples of Las Vegas Sands (11.9) and MGM (12.9).Sure, there may be good reason for this valuation discrepancy. Las Vegas casinos have yet to reopen. This has a larger affect on LVS and MGM stock, as Penn's Vegas footprint is much smaller. But, despite regional casinos opening sooner than resort properties in Vegas, Penn National was on shakier ground financially coming into the pandemic.Granted, Penn's liquidity situation has improved in recent weeks. With the recent $675m equity and convertible debt offering, the company has plenty of capital to ride out the storm.Also, many of their liabilities are leases with GLPI, which could provide the company some rent relief. The spun-off REIT entity has already helped out its former parent, agreeing to buy several properties in exchange for $337.5 million in rent credits.To top it all off, the company may have a growth catalyst in motion that helps them recover even sooner than anticipated. As InvestorPlace's Ian Cooper wrote May 22, the company's investment in Barstool Sports could help them grow their budding sports wagering business. PENN Stock Is Not Your "Best Bet"Upcoming casino reopenings, along with excitement over the company's sports betting catalyst, have led investors to bid up Penn National shares as of late. Should you join in, as it seems the stock could head back to past highs pretty soon?Not so fast! As I highlighted last month, other opportunities could offer a better risk/return proposition. PENN stock? Not so much. In short, this isn't your "best bet" on a casino industry rebound.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Even as Penn National Gaming Stock Rebounds, Consider Other Casino Plays appeared first on InvestorPlace.
Wynn Resorts' (WYNN) focus on the non-gaming business and the robust portfolio bodes well. However, a decline in traffic due to the coronavirus outbreak is concerning.
Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) shuttered their casinos in the Chinese gambling mecca of Macao. Then, once the contagion took hold in the United States, their casinos in Las Vegas followed suit. Now, as the Las Vegas casinos begin to transition toward reopening, investors in both companies have to deal with the fallout from weeks of closure.
KlaymanToskes ("KT"), www.klaymantoskes.com, announced today that it is investigating damages sustained by current and former employees and investors of Wynn Resorts (NASDAQ:WYNN) who held large, unhedged concentrated positions in Wynn Resorts stock and/or received margin calls resulting in the forced sale of stock. The recent losses were the result of unsuitable advice during the Coronavirus ("COVID-19") pandemic. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of concentrated, leveraged positions in Wynn Resorts stock.
Investors like the company’s online business model, against that of capital-intensive traditional casinos that have been hard hit by Covid-19 closures.
The Zacks Analyst Blog Highlights: Intel, Adobe, Advanced Micro Devices, Wynn Resorts and Everest Re Group
Decline in traffic due to the coronavirus-induced shutdowns is likely to get reflected in Melco Resorts' (MLCO) first-quarter revenue results.
Wynn Las Vegas (Nasdaq: WYNN) announced today a reopening date of Thursday, June 4, under phase two of the Nevada United: Roadmap to Recovery plan from Governor Steve Sisolak. As the largest five-star resort in the world, Wynn Las Vegas plans to offer guests a complete Las Vegas experience by opening every amenity and outlet available. Both hotel towers and the casino as well as all restaurants will reopen on June 4, followed by the resort's newest restaurant, Elio, later in the month. Every effort has been made to present Wynn's complete luxury experience and provide guests with the peace of mind needed to enjoy a fun and relaxing return.
Casino giant Caesars’ mountains of debt raises uncertainty about its pending merger with Eldorado (ERI) amid the pandemic, says Dan Wasiolek, senior equity analyst at Morningstar.
Although the Big Three casinos are getting ready to open for business again in Las Vegas, Wall Street is urging caution and tempering investor expectations. UBS analyst Robin Farley reiterated her neutral position on Las Vegas Sands (NYSE: LVS), MGM Resorts (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN) while simultaneously lowering her price targets for all three gambling halls. Nevada Gov. Steve Sisolak announced yesterday that he set a June 4 reopening date for the casino industry, but as the stocks of the industry giants have roared back after collapsing under the weight of the coronavirus pandemic, Farley thinks it's time to apply the brakes.
There is a lot of pent up demand to take risk, and legal gambling is the perfect place to satisfy that desire
The Zacks Analyst Blog Highlights: MGM, Wynn Resorts, Las Vegas Sands and Eldorado Resorts
Arguably those most at risk from the coronavirus blame game are the big three U.S. casinos doing business in Macao, whose licenses are due for renewal beginning in 2022. There is no question where the pandemic began, but China has been pursuing a media offensive to deflect responsibility, even once suggesting the U.S. military was behind the outbreak. The Trump administration is looking to hold China accountable for its actions that first hid, then downplayed the severity of the illness, allowing it to spread worldwide with devastating impact.