Today's Research on Wynn Resorts and Melco Crown: Industry Leaders Focus on Asia Gambling Scene

 Today's Research on Wynn Resorts and Melco Crown: Industry Leaders Focus on
                             Asia Gambling Scene

  PR Newswire

  LONDON, January 25, 2013

LONDON, January 25, 2013 /PRNewswire/ --

Casino companies are feeling the heat of the tough economic scenario. Most of
the gambling companies have expanded their operations to Asian hotspots like
Macau and Singapore. However, since the current economic scenario is gloomy
across the globe, it is difficult for the gambling companies to come up with
ambitious plans for the near future. While luxury segment operator Wynn
Resorts Ltd. (NYSE: WYNN) offered muted returns, Melco Crown Entertainment
Ltd. (NYSE: MPEL) is currently creating new 52-week highs. StockCall has
posted its latest technical analysis on Wynn Resorts and Melco Crown, and
these reports can be accessed at

Wynn Waits for High Rollers to Return

Wynn Resorts is going through some tough times as it is experiencing a decline
in its high roller revenues. The stock started performing towards the end of
2012, but its outlook for 2013 is still cautious. Since the gambling company
is more reliant on its high margin top player segment, it is likely to report
only modest growth this year. Due to tough economic times in the U.S. as well
as in China, the luxury gambling segment will remain in the doldrums for the
foreseeable future, putting extra pressure on Wynn's bottom-line. Register now
to have free access to our reports which include Wynn Resorts at

At its current market price, Wynn offers slightly above 1.5% dividend yield
and it is expected that the casino company would be raising its dividend
payment this year. However, it derives more than two thirds of its revenue
from Macau and the decrease in luxury gambling revenue in Asia is expecting to
put a dampener on the company's fortunes. Another indicator that the company
is going to take conservative approach this year comes from the expected delay
in the commissioning of its new resort in Macau. Wynn was expected to open its
Cotai resort in 2016. However, now the expected date has been pushed up to
2017. While Wynn Resorts caters to the upper segment of gamblers and has
maintained distance from mass gambling, it is still likely to feel intense
pressure from the growing presence of discount casino runners like Las Vegas

Melco Milks Macau Casino Growth

Melco Crown primarily operates in Macau and the gambling haven reported 13.5%
revenue growth for 2012. However, a bigger chunk of this growth came from mass
gambling segment and Melco Crown reaped the benefits. However, after the steep
run up lately, the stock is now trading at high multiples and thus looks set
to make a pullback. The company is also set to face tougher legal scene. Late
last year, the stock took a beating when it came to light that the Chinese
government may take harsh steps to contain money laundering incidences.

Melco, with its $11.20 billion worth of market capitalization, is one of the
biggest players in the leisure industry. However, unlike Wynn and MGM, Melco
is almost completely focused on the Asian gaming scene and thus is more open
to macroeconomic factors in China and Asia. The gaming company is also
planning to go ahead with its expansion plans as it inked a new $1.4 billion
worth of financing deal to back its Macau Studio City venture. Melco is also
well placed to grab a big slice of the pie as the economic situation in China
eases up.


1.Wynn Resorts Ltd. Technical Analysis [ ]

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