Las Vegas Sands Has A Macau And Convention Revenue Problem (NYSE:LVS)
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Macau casino stocks are in trouble. Las Vegas Sands has 250 days of lockdown in Macau. Melco Resorts is less risky than Melcos but still speculative. Macao casino companies are also facing macro headwinds.
Las Vegas Sands has a Macau and Convention Revenue Problem. The company's exposure between Macao and Singapore is about 2:3. Singapore has come back online recently. Maca is expected to produce about $108 million in losses, while Singapore should produce positive EBITDA of about $100 million quarterly.
Macau is going to be down for the year. Occupation rates are low at 35%. Macau casinos should suffer from about $1.2 million in direct costs per day. Maca casinos lost about $6 million of revenue due to total closures.
Melco and LVS have both declined recently. MLCO has about 33% more Macau exposure than L VS. Lvs has less Macao exposure and is working on Cyprus. Both are speculative investments. The Value Lab focuses on long-only value strategies. It's done well for itself over the last 5 years. It took getting its hands dirty in international markets. Give it a try. They focus on international mispriced equities with a portfolio yield of about 4%. They have a no-strings-attached free trial. Their group of buy-side and sell- side experienced analysts will have lots to talk about.
