MGM Macau casino plans $1.5 billion Hong Kong IPO

Macau gambling revenue has been going thru the roof. This IPO is being priced between $1.59 and $1.97 USD per share for insiders. Even getting in at market price I think this could be a good investment. May I have some of the readers thoughts.
Thanks.

Hong Kong stock market?

(q)odiousgambit Hong Kong stock market?(q)
When in search for wealth you need to look under every rock. Although this involves currency exchange which is another factor towards your bottom line the underlying growth potential in this market is beyond belief.

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MGM Macau is a very good bet. They will be there along with Wynn and LVS. Take a look at what their stocks have done over the past 2 years. It is because of Macau. Vegas is dying done. MGM has been plagued with the City Center accruing massive debts. That, along with the fact that they have many properties in Vegas and only one in Macau so far.. they are the reasons that MGM stock (US) hasn't been doing much.

Moving forward... I still love MGM stock. Im in at 10 and believe it will go to 50 eventually. MGM is the best! They do it right. Now that they have restructured their City Center debt and adjusted their books, look out! Plus they are raising money on the Hong Kong Exchange.... Not sure yet how they will integrate the two as different entities or if it will be combined, but Macau is for real and the growth (key word) GROWTH is staggering. Asians love to gamble and there are billions of them over there!

Wynn has a market capitalization of 18 Billion with a PE ratio of 58. LVS has a market capitalization of 30 Billion with a PE ration of 52. LVS is trading around 41 bucks and Wynn is trading around 147 bucks. Dont be fooled by this number. Just because Wynn is much higher in stock price, it doesnt mean that they are bigger. It means that LVS has 750 million shares outstanding vs Wynn who has around 150 million. Wynn is the better company financially and run casinos better than anyone. He is a winner. LVS although more affordable you may think at 41 has much more volatility... and their former President is coming out of the woodworks with allegations of corporate fraud and buying officials in Macau. If for one believe it . Where there is smoke there is fire. And the Asian gov is very sneaky. Be careful with that stock.

So, getting back to MGM. Ther are trading at over 15 now with a market cap of only 7 Billion. They will be writing off City Center debt and adjusting their books. Macau is going to rock. Pansy Ho, who they are partnered with, will bring more properties to the table in Macau for MGM. I just love it. Buy Buy Buy.

Quote: only1choice

When in search for wealth you need to look under every rock. Although this involves currency exchange which is another factor towards your bottom line the underlying growth potential in this market is beyond belief.

that wasn't sarcasm, but a question, and if it is the the Hang Seng I would just want to bow out and not give advice

Quote: odiousgambit

that wasn't sarcasm, but a question

Thank you for clearing that up. I have limited my exposure to this forum regarding contributing, because occasionally I would receive a sarcastic reply. After asking such an innocuous question I thought to myself here we go again. My wife asks me why I bother but I feel this forum has a great deal of very knowledgeable members.

only1choice, read my post. it should give you a better understanding of mgm stock. Ive just done some more research regarding the hong kong ipo as it relates to mgm resorts international (US). MGM Macau,as I read it, is running as its own entity. MGM US owns 51% of MGM macau which gives them great exposure to the Macau market. I love both compaies as stock plays.... i mean REALLY love it!

Quote: WatchMeWin

only1choice, read my post. I love both compaies as stock plays.... i mean REALLY love it!

I hear you loud and clear. I believe this is a hell of a play. Now if I only had bet Shakleford two weeks in a row I'd really be smoking. On a more serious note one of my cds is maturing this week about $40k and I'm going for it. Only experience is in mutual funds and retirement accounts so this hopefully will be a good longterm investment.

i personally like it long term. however, there are two ways to play the stock market in my opinion. get in an get out with a profit and dont look back (similar to my betting in craps) or buy the stock that you love and believe in and put it away without looking at it every day. In this day and age it will drive you crazy and can provoke emotions which can lead to irrattional decision making. Hopefully a few years from now it will be far great than what you paid for it. The key with mgm macau again is GROWTH in a thriving industry in a region of the world that has billions of gambling lovers with a company that knows how to do it right. That seems like a great opportunity to me. I personally am in MGM, AAPL, BIDU, WYNN, VZ, and BMY as my long term plays. Then there are my option plays which change hourly. Good luck. MGM baby!

Quote: only1choice

Macau gambling revenue has been going thru the roof. This IPO is being priced between $1.59 and $1.97 USD per share for insiders. Even getting in at market price I think this could be a good investment. May I have some of the readers thoughts.
Thanks.

I didn't even know there were so many casinos in Macau but after reading your post I've been surfing around learning as much as i can - very interesting! One thing i can't figure out though is what you mean by "$1.59 and $1.97 per share for insiders". I assume you're not talking about NYSE:MGM. Forgive my lack of knowledge here but can you explain that a bit further? Mainly i'm just curious if I can purchase some of this stock and if so where. For instance is this being traded here, ? And if so what is the name because i can't seem to find it.

Great topic and I look forward to discussing it more as time goes by!

Quote: casinogeek

One thing i can't figure out though is what you mean by "$1.59 and $1.97 per share for insiders". I assume you're not talking about NYSE:MGM. Forgive my lack of knowledge here but can you explain that a bit further? Mainly i'm just curious if I can purchase some of this stock and if so where. For instance is this being traded here, http://www.hkex.com.hk ? And if so what is the name because i can't seem to find it.

Great topic and I look forward to discussing it more as time goes by!

NYSE : MGM, while the (same company) is the stock symbol and price of their holdings not including this new offer. The stock will be traded on the Hong Kong market. They do not use letters such as mgm they use numbers, the symbol will be 2282. The initial public offering will be only available to instutional investors such as $100,000 or more to invest and a regular customer of your trading firm. The currency in Hong Kong is 12-15 hong kong dollars which is converted to U.S.dollars about $1.59 to $1.97. On June 3 the stock will be available to the general public and you could buy it at market price which will probably be considerably higher in price but still a good investment. AS OF FRIDAY THERE IS A RESTRICTION ON THIS UPCOMING IPO NO US INVESTORS !
However that could change. It is "legal" to get a brokerage firm from another country be a U.S.citizen and purchase the stock but this is too complicated for me with no international contacts. This could just be another example of the rich getting richer. The ipo has a whos-whos list of investors.

Final Word: MGM went public Thursday nite. The overall market in Hong Kong was down about 300 plus points which contributed to the stock only closing slightly higher then it opening price. News reports say it was a successful opening. The stock was restricted no U.S. investors. Another example of the rich getting richer.