The volatility in financial markets since we last visited the Asian gaming stocks did not leave the stocks undisturbed. Since “Casino Stocks: Turbo-Growth From Rising Asian Wealth” went to press, Wynn Resorts (WYNN) is down 23%, Las Vegas Sands (LVS) down 5%, Melco Crown Entertainment (MPEL) off 20%, and MGM Resorts International (MGM) is down 13%. But International Gaming Technology (IGT), reflecting its exposure to a strengthening U.S, domestic economy instead of the hyper-volatile Asian economies, is up almost 10% in that time period.
The big news is the announcement of a $5.00 special dividend from Wynn and the expected announcement of a dividend in 2012 or 2013 from Las Vegas Sands. Both companies have seen stabilization in their U.S. operations and despite huge capital expenditures for Cotai developments and Macau expansion, cash is piling up at their Asian subsidiaries. The special dividend from Wynn and future regular dividends from Las Vegas Sands also reflect that key control persons – twin casino legends Steve Wynn and Sheldon Adelson – are prime beneficiaries of any dividend expenditures. Wynn and related family members own over 20 million WYNN shares which means a cool $100 million will be coming their way. Hey, every little bit helps during these tough economic times, right ? [Read more...]






