Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Equity Bottom-Up

<ul>
<li>Sega Sammy stock has dipped considerably off it 52 week high.</li>
<li>Its legacy pachinko and pachslot businesses are declining, shifting long-term management goals toward expansion in integrated resorts.</li>
<li>Corporate officials have dispatched 64 top managers from Japan to its South Korea gaming property to train as an advance team for a  possible IR win in Japan.</li>
</ul>As leading IR developers frustration levels rise over the persistent delays of the Japanese Diet in passing a problem gambling bill, I asked our…


Sega Sammy stock has dipped considerably off it 52 week high.
Its legacy pachinko and pachslot businesses are declining, shifting long-term management goals toward expansion in integrated resorts.
Corporate officials have dispatched 64 top managers from Japan to its South Korea gaming property to train as an advance team for a  possible IR win in Japan.
As leading IR developers frustration levels rise over the persistent delays of the Japanese Diet in passing a problem gambling bill, I asked our…

Could Sega Sammy Holdings Be a Smart Wild Card Bet on a Japanese Casino License?

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Approaching the close of 2017, a year whose subdued volatility masked frequent rotation, we turn to Sector and Group themes that we expect to offer opportunities heading into 2018.  We discuss the likelihood of a correction and offer a number of actionable ideas within our favorite sectors; tech, financials, miners, and manufacturing.

Approaching the close of 2017, a year whose subdued volatility masked frequent rotation, we turn to Sector and Group themes that we expect to offer opportunities heading into 2018.  We discuss the likelihood of a correction and offer a number of actionable ideas within our favorite sectors; tech, financials, miners, and manufacturing.

U.S. Equity Outlook: Sector Themes & Synopsis

The primary trend in U.S. equity markets remains bullish, and the usual suspects continue to lead: growth (Tech and FANG), homebuilders, industrials, etc.  Yet unusually bullish price patterns continue to develop in long-term laggards like energy (esp. E&amp;Ps), retail (XRT), and engineering &amp; construction (JEC).  We view this stabilization, or participation, in weak segments as a boost to the market’s breadth, a point of contention in recent months for some, who have pointed out that fewer stocks are trading above their 200-day moving averages.  Attractive entry points are also visible in many cyclical Groups, especially Casinos and Investment Banks.  In today’s report we highlight actionable charts in both Groups... see pages 8-24]

The primary trend in U.S. equity markets remains bullish, and the usual suspects continue to lead: growth (Tech and FANG), homebuilders, industrials, etc.  Yet unusually bullish price patterns continue to develop in long-term laggards like energy (esp. E&amp;Ps), retail (XRT), and engineering &amp; construction (JEC).  We view this stabilization, or participation, in weak segments as a boost to the market’s breadth, a point of contention in recent months for some, who have pointed out that fewer stocks are trading above their 200-day moving averages.  Attractive entry points are also visible in many cyclical Groups, especially Casinos and Investment Banks.  In today’s report we highlight actionable charts in both Groups... see pages 8-24]

U.S. Equity Weekly: Actionable Ideas in Casinos, Investment Banks

<ul>
<li>  Investors in this expanding sector are deluged with me-too analytics that can often inhibit, rather than illuminate the road to smart price discovery driven by under the radar management moves.</li>
<li>Casino stocks have their temperatures taken like flu patients every time news breaks whether it is a true catalyst or simply a vapid space filler for media outlets.</li>
<li>The nature of the symbiotic relationship between standard buy and sell-side analysts and managements unavoidably is built off a process that…</li>
</ul>


  Investors in this expanding sector are deluged with me-too analytics that can often inhibit, rather than illuminate the road to smart price discovery driven by under the radar management moves.
Casino stocks have their temperatures taken like flu patients every time news breaks whether it is a true catalyst or simply a vapid space filler for media outlets.
The nature of the symbiotic relationship between standard buy and sell-side analysts and managements unavoidably is built off a process that…


How Independent Research Can Add Depth to Valuations in High Visibility Sectors like Casinos

<ul>
<li>Wynn Resorts Ltd.(NASDAQ: WYNN) Q3 earnings up 106% led by Macau's Wynn Palace. This reflects powerful VIP upside and marketing margin adjustments that have boosted margins on VIP table games from the previous staple just below 20% to 50%.</li>
<li>Cannibalization of Pennisula property Wynn Macau feared by some analysts did not materialize.</li>
<li>Construction obstacles to property will diminish after neighbor MGM Cotai opens next January</li>
<li>Price at writing in our view does not reflect the full valuation of Macau…</li>
</ul>


Wynn Resorts Ltd.(NASDAQ: WYNN) Q3 earnings up 106% led by Macau's Wynn Palace. This reflects powerful VIP upside and marketing margin adjustments that have boosted margins on VIP table games from the previous staple just below 20% to 50%.
Cannibalization of Pennisula property Wynn Macau feared by some analysts did not materialize.
Construction obstacles to property will diminish after neighbor MGM Cotai opens next January
Price at writing in our view does not reflect the full valuation of Macau…


Propelled by Blowout Q3 Performance in Macau, Wynn Resorts on Runway for Our PT of $200 by 2Q18

United States

MGM Resorts International operates gaming, hospitality and entertainment resorts.  The Company owns properties in Nevada, Mississippi and Michigan in the United States; and owns interests in properties in Nevada and Illinois in the United States, and Macau. MGM Resorts also offers hospitality management services for casino and non-casino properties around the world.

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MGM Resorts International (MGM US)

Could Sega Sammy Holdings Be a Smart Wild Card Bet on a Japanese Casino License?

Sega Sammy stock has dipped considerably off it 52 week high. Its legacy pachinko and pachslot businesses are declining, shifting long-term...

Howard J Klein

U.S. Equity Outlook: Sector Themes & Synopsis

Approaching the close of 2017, a year whose subdued volatility masked frequent rotation, we turn to Sector and Group themes that we expect to offer...

Vermilion Research

U.S. Equity Weekly: Actionable Ideas in Casinos, Investment Banks

The primary trend in U.S. equity markets remains bullish, and the usual suspects continue to lead: growth (Tech and FANG), homebuilders,...

Vermilion Research

How Independent Research Can Add Depth to Valuations in High Visibility Sectors like Casinos

Investors in this expanding sector are deluged with me-too analytics that can often inhibit, rather than illuminate the road to smart price...

Howard J Klein

Propelled by Blowout Q3 Performance in Macau, Wynn Resorts on Runway for Our PT of $200 by 2Q18

Wynn Resorts Ltd.(NASDAQ: WYNN) Q3 earnings up 106% led by Macau's Wynn Palace. This reflects powerful VIP upside and marketing margin adjustments...

Howard J Klein

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