Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Equity Bottom-Up

Melco Resorts & Entertainment / Equity Bottom-Up

<ul>
<li>President Trump's latest tweet churned headwinds throughout all markets but hit the Asian gaming sector hard.</li>
<li>Melco just released an earnings beat for 1Q19 that validates expectations that new Morpheus Tower and growing the mass business are producing against macro headwinds.</li>
<li>Despite Aprill's y/y 8.3% decline in Macau GGR, sector showing signs of resilience compensating for slowing VIP. MLCO reflects that trend.</li>
</ul>


President Trump's latest tweet churned headwinds throughout all markets but hit the Asian gaming sector hard.
Melco just released an earnings beat for 1Q19 that validates expectations that new Morpheus Tower and growing the mass business are producing against macro headwinds.
Despite Aprill's y/y 8.3% decline in Macau GGR, sector showing signs of resilience compensating for slowing VIP. MLCO reflects that trend.


Melco 1Q19: Trump's Latest Tweets Churn Asia Gaming Sector, Creates Entry Point Now

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar. 

Lucror Analytics - Morning Views Asia - 08 May 2019

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Danamon, Kidman, Melco, Naspers, Anadarko, Scout24, Doosan

In this month’s “In-Focus” section, we discuss the 2018 results for Asian (ex-India) companies under our coverage, including whether or not they performed in line with our expectations. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

   In this month’s “In-Focus” section, we discuss the 2018 results for Asian (ex-India) companies under our coverage, including whether or not they performed in line with our expectations.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - 2018 Results Overview (Ex-India) - Lucror Analytics

Melco International Development / Event-Driven

This week in StubWorld ...
<ul>
<li>Profit taking as the HSI touches YTD high and/or Melco Resort's buyback program - either way you slice it, Melco's discount to NAV and implied stub are at extreme levels.</li>
</ul>
Preceding my comments on Melco are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.

This week in StubWorld ...

Profit taking as the HSI touches YTD high and/or Melco Resort's buyback program - either way you slice it, Melco's discount to NAV and implied stub are at extreme levels.

Preceding my comments on Melco are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.

StubWorld: Melco's Implied Stub At Multi-Year Low

Hong Kong

Melco Resorts & Entertainment Limited develops, owns, and operates casinos. The Company offers casino gaming, restaurants, bars, and resorts facilities. Melco Resorts & Entertainment serves customers in Asia.

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Melco Resorts & Entertainment (MLCO US)

Melco 1Q19: Trump's Latest Tweets Churn Asia Gaming Sector, Creates Entry Point Now

President Trump's latest tweet churned headwinds throughout all markets but hit the Asian gaming sector hard. Melco just released an earnings beat...

Howard J Klein

Lucror Analytics - Morning Views Asia - 08 May 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Last Week in Event SPACE: Danamon, Kidman, Melco, Naspers, Anadarko, Scout24, Doosan

Last Week in Event SPACE ... There was a potential for a short-term fall in Bank Danamon Indonesia (BDMN IJ) based on a sell-down of part of the...

David Blennerhassett

Asia HY Monthly - 2018 Results Overview (Ex-India) - Lucror Analytics

In this month’s “In-Focus” section, we discuss the 2018 results for Asian (ex-India) companies under our coverage, including whether or not they...

Lucror Analytics

StubWorld: Melco's Implied Stub At Multi-Year Low

This week in StubWorld ... Profit taking as the HSI touches YTD high and/or Melco Resort's buyback program - either way you slice it, Melco's...

David Blennerhassett

Price Gauge

52-week Range

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