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Las Vegas Sands Stock Rises On Macau Cost Saving Action

July 13, 2009


Las Vegas Sands Las Vegas Sands again led a US casino company stock rally on Wednesday after they announced a major cost cutting move. The company will now cap commissions paid to people responsible for bringing high rollers to their Macau casino.

The move will save millions of dollars and investors acting accordingly on Wednesday. Las Vegas Sands stock rose 13.59% Wednesday, to $8.11 after the news surfaced. It was  a major jump over the previous few days.

“From the market standpoint, it’s positive for Las Vegas Sands and Melco that they’re being proactive about being more responsible and not buying business at any price,” said BMO Capital markets Analyst Jeffrey Logsdon to The Wall Street Journal. Logsdon was referring to the new cap, which was an agreement with Melco Entertainment.

Melco stock also increased after the agreement. Their stock was up to $4.88, a jump of $.47, or 10.66%. Melco had been having a tough time on the market of late, so they have welcomed the good news of the day.

Other casino companies seem to have also benefited from the Sands cap. MGM Mirage closed the day at $6.46, up 8.03%, and Wynn Resorts was up 7.01%, to $36.17. Boyd Gaming was up 7.4%, to $8.83.

Commissions to junket operators will now be capped at 1.25%. The Chinese government has been considering a similar cap, but it has yet to take effect.

Written by admin · Filed Under Gambling News 

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