Melco Crown Entertainment Ltd. (MPEL) develops, owns and, through its subsidiary Melco Crown Gaming, operates casino gaming and entertainment casino resort facilities. Melco Crown Gaming is one of the six companies licensed, through concessions or sub-concessions, to operate casinos in Macau.  MPEL currently operates Altira Macau (www.altiramacau.com) (formerly Crown Macau), a casino hotel located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated urban casino resort located in Cotai, Macau. The Company’s business also includes the Mocha Clubs (www.mochaclubs.com), which feature a total of approximately 1,600 gaming machines in eight locations and comprise the largest non-casino based operations of electronic gaming machines in Macau.  MPEL was incorporated in 2004 and is based in Central, Hong Kong.

Source: Reuters.com, SEC Filings.

Recent News

MPEL shares gained after the Macau casino operator announced its acquisition of a majority stake in the developer of Macau Studio City project almost two weeks ago.  Sterne Agee & Leach analyst David Bain, who kept a Buy rating and $17.85 price target on MPEL stock, said it was good move for the Company because Macau Studio City has the best location on the Cotai Strip. Macau Studio City is a large scale integrated gaming, retail and entertainment resort to be developed in Macau jointly by MPEL and New Cotai Holdings LLC, an entity controlled by funds managed by Silver Point Capital L.P. and Oaktree Capital Management L.P.

MPEL said it would pay the affiliate of eSun Holdings $260 million for its 60% interest in the Cyber One Group, the developer of the Macau Studio City project, and will also pay New Cotai $100 million in cash in three installments over two years commencing upon the closing of the transactions. New Cotai will retain its 40% indirect equity interest in the Cyber One Group.

“We remain bullish on Macau’s prospects and believe high quality new supply, such as Macau Studio City, will continue to drive incremental demand and broaden the appeal of the market,” commented MPEL co-chairman and CEO Lawrence Ho. “The project’s location is a tremendous competitive advantage, adjacent to the Lotus Bridge and a key stop on the planned light rail system. Additionally, we believe Macau Studio City’s existing land grant and previously completed site work will allow us to significantly expedite its construction timetable.”

MPEL traded near its 52-week high of $12.06 in yesterday’s session, on volume of more than 4 million shares.  The stock is currently trading above its 50-day moving average of $10.77 and above its 200-day moving average of $8.39.

Visit MPEL at http://www.melco-crown.com/eng/main.php

Financial Summary

MPEL reported net revenue of $806.6 million for the first quarter of 2011, up 42% from the same period last year. The Company attributed the increase to several factors, including the continuing ramp up of the rolling chip, mass market and hotel operations at City of Dreams, contribution from The House of Dancing Water and substantial improvement in Altira Macau’s rolling chip volume.

First-quarter adjusted EBITDA came in at $121.3 million, up from $86.9 million reported last year. The increase in adjusted EBITDA was due to substantial increase in gaming volumes and strict cost controls that drove operating leverage.

MPEL reported net income of $7.2 million, or $0.01 a share, for the first quarter of 2011, compared with a net loss of $12.5 million, or a loss of $(0.02) a share, reported for the same period in the previous year. MPEL’s quarterly earnings, however, missed analysts’ expectations by $0.05.

The Company said the continuing year-on-year improvement in bottom-line profitability was primarily driven by the significant improvement in both gaming and non-gaming fundamental operating performance at City of Dreams and Altira Macau, partially offset by increased depreciation and amortization expense primarily associated with the opening of The House of Dancing Water at City of Dreams and higher net interest expense related to the refinancing of about $600 million of bank debt through the issuance of a high yield bond in May 2010.

As of March 31, 2011, MPEL had cash and cash equivalents totaling $704.3 million, which includes $145.5 million of restricted cash. The Company’s total debt at the end of the first quarter of 2011 was $1.80 billion, and total net debt to shareholders’ equity as of March 31, 2011, was 43%.

Technical Analysis

Source: http://stockcharts.com

MPEL is trading above its 20-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

MPEL is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

The MACD for MPEL currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

1. Stock Alert for Melco Crown Entertainment Ltd. (ADR) (MPEL)
2. Stock Alert for Melco Crown Entertainment Ltd. (ADR)(MPEL)
3. Stock Alert for Melco Crown Entertainment Ltd. (MPEL)

Technical Analysis

Source: http://stockcharts.com

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

1. Stock Alert for Melco Crown Entertainment Ltd. (MPEL)
2. Stock Alert for Melco Crown Entertainment Ltd. (ADR)(MPEL)
3. Stock Alert for Melco Crown Entertainment Ltd. (MPEL)

MPEL was incorporated in 2004 and is based in Central, Hong Kong.

Source: Reuters.com, SEC Filings.

Investment Highlights

MPEL reached a new 52-week high of $8.02 on Friday, before settling to close at $8.01. That closing price was up 5.39% from the previous session’s close.  Approximately 14.94 million shares have traded hands during the session, versus the 10-day average volume of 5 million.  MPEL is trading above its 50-day moving average of $7.23 and its 200-day moving average of $6.46.  Market capitalization currently stands at $4.26 billion and it has 532.08 million outstanding shares.

Macau casino stocks were boosted Friday following news of strong gambling revenue growth in the booming Chinese casino enclave.  MPEL’s Melco Crown Gaming is one of the six companies licensed, through concessions or sub-concessions, to operate casinos in Macau. The Company competes with gambling giants Las Vegas Sands Corp. (NYSE: LVS), Wynn Resorts Ltd. (Nasdaq: WYNN) and MGM Mirage (NYSE: MGM), as well as with homegrown companies Galaxy Entertainment Group Ltd. and SJM Holdings Ltd. The Macau government said revenue among the enclave’s casinos increased 48% in March to 20.1 billion patacas ($2.51 billion).

Macau, a former Portuguese colony, is the only place in China where casino gambling is legal.  According to a 2007 South China Morning Post report, Macau overtook the Las Vegas Strip as the largest gaming market in the world in 2006 when its gaming revenues surged 23% year-on-year to $6.87 billion. In 2007, Macau’s gaming revenues reached $10.4 billion, a 46.6% increase over the previous year.

MPEL on Friday announced that it appointed Geoffrey Davis as its new chief financial officer. “His knowledge of the Company and extensive familiarity with the Macau gaming industry is of tremendous value to our senior management team,” MPEL co-chairman and CEO Lawrence Ho commented in a press release.  “I am confident we are placing the CFO role in good hands with Geoff.”

Visit MPEL at http://www.melco-crown.com/eng/main.php

Financial Summary

MPEL reported net revenue of $773.7 million for the fourth quarter of 2010, representing an increase of approximately 93% from $400.2 million reported in the quarter ended December 31, 2009. Adjusted EBITDA was $133.8 million for the fourth quarter of 2010, as compared to Adjusted EBITDA of $2.7 million in the fourth quarter of 2009. The year-over-year improvement in net revenue and Adjusted EBITDA resulted primarily from significantly improved operating performance at City of Dreams and Altira Macau.

On a U.S. GAAP basis, MPEL recorded net income for the fourth quarter of 2010 of $16.3 million, or $0.03 per ADS, compared with a net loss of $89.7 million, or a loss of $0.17 per ADS, in the fourth quarter of 2009. The improvement in bottom-line results was driven by the year-over-year improvement in the operating performance at City of Dreams and Altira Macau, partially offset by increased depreciation and amortization expense primarily associated with the opening of The House of Dancing Water at City of Dreams and higher net interest expense related to the refinancing of approximately $600 million of bank debt through the issuance of a high yield bond in May 2010.

City of Dreams 4Q Results

For the quarter ended December 31, 2010, net revenue at City of Dreams was $488.7 million compared to $237.6 million in the fourth quarter of 2009. City of Dreams generated Adjusted EBITDA of $97.7 million in the fourth quarter of 2010 compared to $22.2 million in the fourth quarter of 2009. The year-over-year improvements in both net revenue and Adjusted EBITDA were driven by increased gaming volume and win rates in the fourth quarter of 2010, as compared with the same measures in the fourth quarter of 2009.

Rolling chip volume totaled $15.4 billion for the fourth quarter of 2010, up 65% from $9.3 billion in the fourth quarter of 2009, and the rolling chip hold percentage was 2.9% in the fourth quarter of 2010 versus 2.4% in the fourth quarter of 2009. The expected rolling chip hold percentage range is 2.7%-3.0%.

Mass-market (non rolling chip) table games drop increased 35% to $572.5 million compared with $423.3 million in the fourth quarter of 2009. The mass-market win rate was 22.0% in the quarter under review and increased from 17.2% in the same period last year. At City of Dreams, the Company expects its mass-market table games hold percentage to range from 20%-22%.

Slot handle for the quarter ended December 31, 2010, was $513.5 million, up 38% from $372.8 million generated in the quarter ended December 31, 2009.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2010 was $47.6 million, up from $22.8 million in the fourth quarter of 2009. Occupancy per available room in the fourth quarter of 2010 was 87% versus 79% in the fourth quarter of 2009. The average daily rate (ADR) in the fourth quarter of 2010 was $166 per occupied room, which compares with $152 in the fourth quarter of 2009.

Altira Macau 4Q Results

For the quarter ended December 31, 2010, net revenue at Altira Macau was $245.1 million versus $132.7 million in the quarter ended December 31, 2009. Altira Macau generated Adjusted EBITDA of $46.4 million in the fourth quarter of 2010 compared with an Adjusted EBITDA loss of $14.0 million in the fourth quarter of 2009. A year-over-year increase in gaming volume and a return to a normal rolling chip hold percentage drove the improvements in net revenue and Adjusted EBITDA.

Rolling chip volume totaled $11.4 billion in the fourth quarter of 2010 versus $8.9 billion in the fourth quarter of 2009. In the fourth quarter of 2010, the rolling chip hold percentage was 2.9%, as compared to 2.3% for the same period a year ago. The expected rolling chip hold percentage range is 2.7%-3.0%.

In the mass-market (non rolling chip) table games segment, drop totaled $132.5 million in the fourth quarter of 2010, up 98% from $67.0 million generated in the comparable period in 2009. The mass-market win rate was 14.7% in the fourth quarter of 2010 compared with 18.8% in the fourth quarter of last year. At Altira Macau, the Company expects its mass-market table games hold percentage to range from 15.0%-17.0%.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2010 was $7.6 million, down slightly from $7.7 million in the fourth quarter of 2009. Occupancy per available room in the fourth quarter of 2010 was 97% and the ADR was $170 per occupied room. This compares with occupancy and ADR of 94% and $196, respectively, in the fourth quarter of 2009.

Mocha Clubs 4Q Results

Net revenue from Mocha Clubs totaled $30.6 million in the fourth quarter of 2010, up from $25.0 million in the fourth quarter of 2009. Mocha Clubs generated $8.6 million of Adjusted EBITDA in the fourth quarter of 2010, which compares with $6.2 million in the fourth quarter of 2009.

The number of gaming machines in operation at the Mocha Clubs averaged approximately 1,600 in the fourth quarters of 2010 and 2009. The net win per gaming machine per day was $208 in the quarter ended December 31, 2010, as compared with $174 in the same period in 2009.

Other Factors Affecting Earnings

Total non-operating expense for the fourth quarter of 2010 was $29.9 million, which included $27.9 million in net interest expense and other finance costs of $4.1 million. There was no capitalized interest during the fourth quarter of 2010.

Depreciation and amortization costs of $82.9 million were recorded in the fourth quarter of 2010, of which $14.3 million was related to the amortization of our gaming sub-concession and $4.9 million was related to the amortization of land use rights. The year-over-year increase in depreciation and amortization costs is primarily related to the opening of The House of Dancing Water in the third quarter of 2010.

Financial Position and Capital Expenditure

Cash and cash equivalents as of December 31, 2010, totaled $609.2 million, including $167.3 million of restricted cash. Total debt at the end of the fourth quarter of 2010 was $1.84 billion, and total net debt to shareholders’ equity as of December 31, 2010 was 49%.

Capital expenditures for the fourth quarter of 2010 were $34.2 million, primarily attributable to various projects at City of Dreams and Altira Macau.

Full Year 2010 Results

For the twelve months ending December 31, 2010, MPEL reported net revenue of $2.6 billion versus $1.3 billion in the twelve months ending December 31, 2009. Adjusted EBITDA for the twelve months of 2010 was $430.4 million, as compared with Adjusted EBITDA of $55.8 million in the twelve months of 2009.

Source: http://www.melco-crown.com/eng/main.php

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast among 19 polled investment analysts. Against the Melco Crown Entertainment Ltd company.

The 16 analysts offering 12-month price targets for MPEL have a median target of 8.48, with a high estimate of 12.20 and a low estimate of 3.65. The median estimate represents a 11.51% increase from the last price of 7.60.

Source: markets.ft.com

Consensus Estimates Analysis

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=MPEL.O

Technical Analysis

Source: http://stockcharts.com

MPEL is trading above its 20-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

MPEL’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

The MACD for MPEL currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment adviser or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Related Articles

1. Stock Alert for Melco Crown Entertainment Ltd. (ADR) (MPEL)
2. Stock Alert for Melco Crown Entertainment Ltd. (MPEL)
3. Stock Alert for Melco Crown Entertainment Ltd. (MPEL)

The Company was founded in 1988 and is headquartered in Las Vegas, Nevada.

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of BYD soared 12.35% to close Tuesday at $12.37 following an upgrade by Bank of America/Merrill Lynch to Buy from Underperform.  Approximately 9.71 million shares have traded hands, compared with the stock’s average daily volume of about 2.63 million shares.

In a report to clients, analyst Shaun Kelley said: “Las Vegas is recovering and we believe Boyd is a derivative way to play the recovery with nearly 50% of total [earnings before interest, taxes, depreciation and amortization] coming from the Las Vegas Locals and Downtown markets.”Bank of America/Merrill Lynch also upgraded MGM Resorts International (NYSE:MGM) to Buy from Neutral.

BYD has so far reached a 52-week high of $14.85, its 52-week low being $6.70.  The stock is currently trading above its 50-day moving average of $11.06 and its 200-day moving average of $8.96.  BYD’s market capitalization currently stands at $1.07 billion and it has 86.23 million outstanding shares.

The gaming-properties operator reported an 11% drop in its third quarter, hurt by slow consumer spending. However, the Company said it saw both stabilization and improvement in its business as it reported the smallest declines in revenues and EBITDA since the third quarter of 2009.

BYD posted third-quarter net revenues of $145.6 million in its Las Vegas Locals segment, compared to $150.7 million in the comparable quarter of 2009. Third quarter 2010 Adjusted EBITDA was $26.1 million, down from the prior-year quarter’s $31.4 million. In actual dollars, the Company said its adjusted EBITDA decline matches the smallest quarterly gap in the last two years and, although spend-per-visit was lower, it said visitation to its Las Vegas Locals properties remained strong.

“We are encouraged by our results so far in October, and expect fourth-quarter comparisons will be the best of the year, said BYD president and CEO Keith Smith.  “As conditions improve, we remain focused on deleveraging our balance sheet and controlling costs, ensuring we will be well-positioned to capitalize on the opportunities presented by a recovering economy.”

BYD’s next earnings announcement is expected on March 02, 2011.

Visit BYD at www.boydgaming.com

Financial Summary

For the third quarter ended September 30, 2010, BYD reported net income of $5.6 million, or $0.06 per share, compared to net income of $6.3 million, or $0.07 per share, in the same period last year. Certain pre-tax items resulted in a net decrease in income of $7.5 million ($4.2 million, net of tax, or $0.04 per share) during the third quarter 2010. By comparison, the third quarter 2009 included certain pre-tax items that had a net effect of increasing net income by $1.3 million ($1.7 million, net of tax, or $0.02 per share).

Adjusted earnings or the third quarter 2010 were $1.4 million, or $0.02 per share, compared to $8.0 million, or $0.09 per share, for the same period in 2009.

Net revenues were $595.4 million for the third quarter 2010, compared to $620.8 million during the same quarter in 2009, a decrease of 4.1%. Total Adjusted EBITDA was $115.4 million for the quarter, a decrease of 18.2% from $141.0 million in the prior year.

For the nine months ended September 30, 2010, net income was $17.4 million, or $0.20 per share, compared to net income of $5.3 million, or $0.06 per share, for the nine months ended September 30, 2009.

Adjusted earnings for the nine months ended September 30, 2010 were $14.5 million, or $0.17 per share, compared to $31.4 million, or $0.36 per share for the nine-month period in 2009.

Source: www.boydgaming.com

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast among 22 polled investment analysts. Against the Boyd Gaming Corp company.

The 17 analysts offering 12-month price targets for BYD have a median target of 9.00, with a high estimate of 14.00 and a low estimate of 4.50. The median estimate represents a -18.26% decrease from the last price of 11.01.

Source: markets.ft.com

Consensus Estimates Analysis

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=BYD.N

Technical Analysis

Source: http://stockcharts.com

On Monday, BYD closed above its 20-day moving average. This is generally considered to be an indication of a bullish trend.

BYD is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

BYD’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.

Comparative Analysis

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

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LVS is a developer of integrated resorts that feature premium accommodations, world-class gaming and entertainment, convention and exhibition facilities, celebrity chef restaurants, and many other amenities.  It owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and The Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Macao, The Venetian Macao Resort Hotel, and the Four Seasons Hotel Macao, Cotai Strip in Macau, the People’s Republic of China. In Singapore, the Marina Bay Sands is the most recent addition to the company’s portfolio.

LVS is currently constructing a 6,400-room complex at the Cotai Strip, Macau which will feature the Shangri-La, Traders, Sheraton, and St. Regis hotel brands. The development would virtually double the company’s scale in Macau, and significantly increase its exposure to this growing gaming market by the end of 2011. LVS is also in the process of developing Sands Casino Resort Bethlehem located on the site of the historic Bethlehem Steel Works in Bethlehem, Pennsylvania. In May, 2009, LVS opened the casino component of Sands Bethlehem, which features slot machines and several food and beverage offerings. In April 2010, the Company commenced construction of a 300-room hotel tower, which is expected to open in the second quarter of 2011.

The weakening business at the company’s Las Vegas casino-hotels during 2009 has made LVS to suspend its development projects in the U.S. and focus on Asian market. The strategy paid out in 2010, when the company opened the Marina Bay Sands in Singapore last April; and turned to profitability on record revenues that hit $6.9 billion, up 50% compared to 2009. LVS is currently generating 85% of revenue from Singapore and Macau gaming properties.

Dynamic business in Macau, improving results in Las Vegas and Bethlehem, along with the opening of Marina Bay Sands casino in Singapore helped LVS to post solid profitability in Q4 2010. The company earned $270 million, or 34 cents a share, on the period, compared to a loss of $114 million, or 17 cents a share, in the same period of 2009. On an adjusted basis, the company reported that it would have earned 42 cents a share. Revenue for the quarter soared 56.9% to a record of $2.02 billion. The average estimate of analysts surveyed by Thompson Reuters had called for LVS to earn 39 cents a share on revenue of $2.07 billion.

While, LVS experienced stronger gaming volumes at Macau properties, and solid margins that drove record profitability, it failed to produce the growth that the market was expecting.  The company’s majority-owned subsidiary Sands China, which owns and operates Macau assets, posted revenues of $1.09 billion in Q4 2010, up 13.1% from $964.1 million in Q4 2009. The reported growth underperforms the overall Macau gaming revenue expansion that reached 52% in Q4 2010, according to Macau’s Gaming Inspection and Coordination Bureau. Moreover, during Q3 2010, the growth rate of Sands China stood at 27.7%, twice more than current 13.1%.

Despite the fact that the disappointing growth has taken a toll on the company’s valuation, there is no basis to believe that the core fundamentals of LVS business has altered and, accordingly, we expect the solid Asian footprint to continue providing an ideal platform for strong growth and superior returns for the company. Going further, we appreciate the current dip in LVS stock price as rather temporary and expect the company to resume the growth track.

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Share Statistics (16-Dec-10)			FY 2008	FY 2009	% Chg	Q3 2009	Q3 2010	% Chg
Symbol	LVS	Revenue, $Mn	4.39B	4.56B	3.9%	1.14B	1.91B	67.5%
Current price	$45.25	Gross marg.	36.9%	37.0%	0.3%	36.8%	45.5%	23.6%
52wk Range:	$14.87-$55.47	Oper. margin	–	-1.1%	–	–	18.9%	–
Avg Vol (3m):	35,782,500	Net margin	-3.7%	-7.8%	110.8%	-6.7%	11.2%	-267.1%
Market Cap.	30.98B
Shares Outstanding	684.73M	EPS, $	-0.39	-0.62	59.0%	-0.19	0.26	-236.8%

Source: Reuters.com, SEC Filings.

Financial Summary

For the third quarter of 2010, LVS reported record net revenue of $1.91 billion, an increase of 67.3% compared to $1.14 billion in the third quarter of 2009. Consolidated adjusted property EBITDA in the third quarter of 2010 increased 136.9% to $645.2 million, compared to $272.3 million in the year-ago quarter. Consolidated adjusted property EBITDA margin increased 990 basis points to 33.8% in the third quarter of 2010, compared to 23.9% in the third quarter of 2009.

On a GAAP (Generally Accepted Accounting Principles) basis, operating income in the third quarter of 2010 increased to $383.3 million, compared to $62.4 million in the third quarter of 2009. The increase in operating income was principally due to stronger results across the Company’s portfolio of properties in Macau, and the first full quarter of operations at Marina Bay Sands in Singapore.

Adjusted net income increased to $265.2 million, or $0.34 per diluted share, compared to $20.1 million, or $0.03 per diluted share, in the third quarter of 2009.

On a GAAP basis, net income attributable to common stockholders in the third quarter of 2010 was $168.0 million, compared to a net loss of $123.0 million in the third quarter of 2009. Diluted earnings per share in the third quarter of 2010 was $0.21, compared to a diluted loss per share of $0.19 in the prior year quarter. The improvement in the Company’s net income attributable to common stockholders of $291.0 million reflects the increase in operating income, partially offset by an increase in net income attributable to noncontrolling interests (primarily Sands China Ltd.).

Source: Las Vegas Sands Corp.

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast among 25 polled investment analysts. Against the Las Vegas Sands Corp company.

The 21 analysts offering 12-month price targets for LVS have a median target of 50.00, with a high estimate of 62.50 and a low estimate of 42.00. The median estimate represents a 18.29% increase from the last price of 42.27.

Source: markets.ft.com

Consensus Estimates Analysis

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=LVS.N

Investment Highlights

Driving casino stocks up yesterday, LVS said it expects Vegas group room-rates to jump at least 10% by 2012.

“We’re feeling good about Las Vegas,” LVS CEO Mike Leven said in an interview on CNBC. “It’s not what it was in 2006 and 2007 but it’s getting better. We’re seeing an enormous amount of group business on the books for next year. Our rate is not where we’d like it to be but it’s starting to move now.”

Leven said LVS has almost 650,000 group-room nights booked for 2011 and added that the Company is also seeking to expand in Japan, South Korea and Spain.

Barclays recently maintained its Overweight rating on LVS with a $52 price target.  StreetInsider.com quoted the Barclays analyst as saying, “Since the Macau government rejected LVS’ application for Parcels 7 and 8 in Cotai on December 2, LVS shares have declined 17.7% compared to a 2.4% increase for the S&P 500 … Macau estimates for LVS in 2010 are quite achievable (we estimate GGR growth of only 7.5%) regardless of the government’s actions on future development, especially given LVS’ mass focus … In Singapore, LVS’ VIP business still has room to grow (we believe Marina Bay Sands is currently outperforming Resorts World Sentosa in mass gaming).”

Morgan Stanley also made positive comments on the stock, suggesting using a recent sell-off in LVS as a buying opportunity. LVS shares have tumbled by almost 20% over the last two weeks.  The report is from StreetInsider.com

JP Morgan analyst Joseph Greff, who recently upgraded LVS’s rival Wynn Resorts (NASDAQ: WYNN) to Overweight, also expressed optimism on the Las Vegas Strip.

Technical Analysis

Source: http://stockcharts.com

LVS is below its 13-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

LVS is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

The MACD for LVS currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months
	Shares	Transaction
Purchases	n/a	0
Sales	166,595	2
Net Shares Purchased (Sold)	(166,595)	2
Total Insider Shares Held	369.55M	n/a
% Net Shares Purchased (Sold)	0%	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	(80,265,000)
% Change in Institutional Shares Held	(48.89%)

Source: Yahoo Finance

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