Cotai is no doubt the hottest area of Macau for gaming and Wynn Resorts' (NASDAQ: WYNN ) results from the first quarter are another data point showing one of the downsides to this trend. Macau's gaming revenue overall was up 14.8% in the first quarter, but Wynn's revenue was only up 4.4% because its only resort is on the Macau Peninsula. Casinos won't average 14.8% growth across the board because Las Vegas Sands' (NYSE: LVS ) Sands Cotai Central added some capacity vs. last year but we definitely see gaming dollars moving to Cotai, which hurts Wynn.
Cotai is where it's at
Wynn is the first of Macau's operators to report earnings so this is our first peek into earnings trends. The VIP segment was down 15.3% from a year ago despite a higher-than-expected win percentage. VIP dollars can swing wildly based on junket movement and, with Galaxy and Las Vegas Sands opening new junket rooms, Wynn has lost out on some business there.
Best Prefered Stocks To Watch For 2014: MGIC Investment Corp (MTG)
MGIC Investment Corporation (MGIC), incorporated June 21, 1984, is a holding company and through wholly owned subsidiaries is a private mortgage insurer in the United States. As of December 31, 2012, its principal mortgage insurance subsidiaries, Mortgage Guaranty Insurance Corporation (MGIC) and MGIC Indemnity Corporation (MIC), were each licensed in all 50 states of the United States, the District of Columbia and Puerto Rico. During the year ending December 31, 2012, the Company wrote new insurance in each of those jurisdictions in MGIC and/or MIC. The Company capitalized MIC to write new insurance in certain jurisdictions where MGIC no longer meets, and is unable to obtain a waiver of, those jurisdictions��minimum capital requirements. Private mortgage insurance covers losses from homeowner defaults on residential mortgage loans, reducing and, in some instances, eliminating the loss to the insured institution if the homeowner defaults.
Mortgage Insurance
Primary insurance provides mortgage default protection on individual loans and covers unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure. Primary insurance is written on first mortgage loans secured by owner occupied single-family homes, which are one-to-four family homes and condominiums. Primary insurance is also written on first liens secured by non-owner occupied single-family homes, which are referred to in the home mortgage lending industry as investor loans, and on vacation or second homes. Primary coverage can be used on any type of residential mortgage loan instrument approved by the mortgage insurer.
When a borrower refinances a mortgage loan insured by the Company by paying it off in full with the proceeds of a new mortgage that is also insured by it, the insurance on that existing mortgage is cancelled, and insurance on the new mortgage is considered to be new primary insurance written. Therefore, continuation of its coverage fr! om a refinanced loan to a new loan results in both a cancellation of insurance and new insurance written. When a lender and borrower modify a loan rather than replace it with a new one, or enter into a new loan pursuant to a loan modification program, its insurance continues without being cancelled assuming that the Company consent to the modification or new loan.
The borrower�� mortgage loan instrument requires the borrower to pay the mortgage insurance premium. There are several payment plans available to the borrower, or lender, as the case may be. Under the monthly premium plan, the borrower or lender pays it a monthly premium payment to provide only one month of coverage. Under the annual premium plan, an annual premium is paid to it in advance, and it earns and recognizes the premium over the next 12 months of coverage, with annual renewal premiums paid in advance thereafter and earned over the subsequent 12 months of coverage. Under the single premium plan, the borrower or lender pays it a single payment covering a specified term exceeding twelve months.
Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. Pool insurance is used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance covers the excess of the loss on a defaulted mortgage loan, which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan which did not require primary insurance. In general, the loans insured by it in Wall Street bulk transactions consisted of loans with reduced underwriting documentation; cash out! refinanc! es, which exceed the standard underwriting requirements of the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively GSEs); A- loans; subprime loans, and jumbo loans.
Other Products and Services
The Company has participated in risk sharing arrangements with the GSEs and captive mortgage reinsurance arrangements with subsidiaries of certain mortgage lenders, which reinsure a portion of the risk on loans originated or serviced by the lenders, which have MGIC primary insurance. It provides information regarding captive mortgage reinsurance arrangements to the New York Department of Insurance (known as the New York Department of Financial Services), the Minnesota Department of Commerce and the Department of Housing and Urban Development, (HUD). It performs contract underwriting services for lenders, in which it judges whether the data relating to the borrower and the loan contained in the lender�� mortgage loan application file comply with the lender�� loan underwriting guidelines. It also provides an interface to submit data to the automated underwriting systems of the GSEs, which independently judge the data. These services are provided for loans, which require private mortgage insurance, as well as for loans that do not require private mortgage insurance. It provides mortgage services for the mortgage finance industry, such as portfolio retention and secondary marketing of mortgages.
The Company competes with Federal Housing Administration, Veterans Administration, PMI Mortgage Insurance Company, Genworth Mortgage Insurance Corporation, United Guaranty Residential Insurance Company, Radian Guaranty Inc., CMG Mortgage Insurance Company, and Essent Guaranty, Inc.
Best Prefered Stocks To Watch For 2014: China Xlx Fertiliser Ltd. (B9R.SI)
China XLX Fertiliser Ltd., an investment holding company, engages in the manufacture, sale, and trade of urea, compound fertilizers, methanol, and liquid ammonia and ammonia solution in Mainland China. The company offers urea that provides nitrogen to crops and serves as raw material for agricultural fertilizers, plastic, resin, coating materials and pharmaceutical industries; and methanol that is used in the industrial production of formaldehyde, synthetic fiber, plastic, pharmaceutical, pesticides, dye, and synthetic proteins, as well as used as fuel and energy resource in power stations. Its compound fertilizers can be used as ground fertilizer or added fertilizer and are suitable for growing wheat, paddy, corn, peanuts, tobacco, fruit trees, vegetables, and cotton. China XLX Fertiliser Ltd. also exports its products to the United States, south east Asia, and south Asia. The company was founded in 1970 and is headquartered in Xinxiang, the People�s Republic of China.
Best Dividend Companies To Invest In Right Now: cineworld group ORD GBP0.01 WI(CINE.L)
Cineworld Group plc, an investment holding company, engages in the operation of cinemas for the exhibition of films and related retail activity in the United Kingdom and Ireland. Its theatres showcase 3D, live sport, live opera, interactive gaming, or corporate presentations. The company promotes interest in a range of films beyond the traditional Hollywood blockbuster in such areas as Bollywood, other foreign language, and small and mid-range films. It also engages in cinema property leasing and screen advertising activities. As of 30 December 2010, the company operated 78 cinemas with 801 screens. Cineworld Group plc was founded in 1995 and is headquartered in London, the United Kingdom.
Best Prefered Stocks To Watch For 2014: L Brands Inc (LTD)
L Brands, Inc., formerly Limited Brands, Inc, incorporated on March 16, 1982, operates in the specialty retail business. The Company is a specialty retailer of women�� intimate and other apparel, beauty and personal care products and accessories. The Company operates in two segments: Victoria�� Secret and Bath & Body Works. It sells its merchandise through Company-owned specialty retail stores in the United States, Canada and the United Kingdom, which are primarily mall-based, and through Websites, catalogue and international franchise, license and wholesale partners. The Company operates in brands, such as Victoria�� Secret, Victoria�� Secret Pink, Bath & Body Works, La Senza, and Henri Bendel. The Company�� business for both the Victoria�� Secret and Bath & Body Works segments is principally conducted from office, distribution and shipping facilities located in the Columbus, Ohio area.
As of February 2, 2013, it operated 255 retail stores located in leased facilities, primarily in malls and shopping centers, throughout the Canadian provinces. As of February 2, 2013, it operated two retail stores in London. As of February 2, 2013, it operated 2,619 retail stores located in leased facilities, primarily in malls and shopping centers, throughout the United States. As of February 2, 2013, it also had 339 licensed La Senza stores in 32 countries; 38 franchised Bath & Body Works stores in nine countries; three franchised Victoria's Secret stores in two Middle Eastern countries, and 108 independently owned Victoria�� Secret Beauty and Accessories stores and various small-format locations in over 50 countries.
Victoria�� Secret, including Victoria�� Secret Pink, is a specialty retailer of women�� intimate and other apparel with fragrances and cosmetics, supermodels and runway shows. The Company sells its Victoria�� Secret products at more than 1,000 Victoria�� Secret stores in the United States, Canada, United Kingdom and through the Victoria�� Secret catal! ogue and online at www.VictoriasSecret.com. Additionally, Victoria�� Secret brand products are also sold in stores operated by partners under a franchise or wholesale model throughout the world.
Bath & Body Works is a specialty retailer of home fragrance and personal care products, including shower gels, lotions, soaps and sanitizers. The Company sells its Bath & Body Works products at more than 1,600 Bath & Body Works stores in the United States and Canada and online at www.BathandBodyWorks.com. Additionally, Bath & Body Works brand products are available at franchise locations throughout the world.
La Senza is a specialty retailer of women�� intimate apparel. The Company sells its La Senza products at more than 150 La Senza stores in Canada and online at www.LaSenza.com. Additionally, La Senza has more than 330 stores in 32 countries operating under franchise and licensing arrangements. Henri Bendel sells upscale accessory products through its New York flagship and 28 other stores, as well as online at www.HenriBendel.com.
Advisors' Opinion:- [By Jonas Elmerraji]
L Brands (LTD) rounds out our list of stocks that institutions hate right now. Don't feel bad if the name doesn't sound familiar; after unloading its namesake The Limited stores in the wake of the Great Recession, management picked the new name as a stopgap until it comes up with something better. Maybe that lackluster naming strategy is what's sending funds that own LTD running for the door. Funds sold 49 million shares of the firm in the first quarter, cutting their stake by more than half.
L Brands' crown jewel is Victoria's Secret. The store chain has a strong brand with celebrity exposure, it operates in the extremely high margin lingerie business, and it sports an economic moat for its trouble. As retailers continue to look for their ideal model, Victoria's Secret will continue to be it.
The firm's less entrenched brands, such as Bath & Body Works and Henri Bendel, don't sport the same level of an economic moat that Victoria's Secret does, but they've been buoyed by a stellar uptick in consumer spending in the last few quarters. As LTD looks for a new direction, investors can find some solace in the fact that management and investors are one in the same. Founder Leslie Wexner and his wife Abigail own a massive chunk of outstanding shares, keeping incentives skewed towards owners over than management.
Hefty margins and a big geographic footprint make LTD a solid way to gain retail exposure, even if the institutional investors don't agree.
Best Prefered Stocks To Watch For 2014: Tibet Pharmaceuticals Inc.(TBET)
Tibet Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the research, development, manufacture, marketing, and sale of traditional Tibetan medicines. The company, through its operational entity, Yunnan Shangri-La Tibetan Pharmaceutical Group Limited (YSTP), develops products in China for promoting health in human respiratory, digestive, urinary, and reproductive systems. Its commercialized products include 25 Ingredients Mandrake Pill, which is used to regulate menses to treat endometritis, pelvic inflammations, and women?s anemia; 15 Ingredients Gentiana Pill to treat bronchitis, emphysema, asthma, and hoarseness; 28 Ingredients Pinang Pill for treating cold waist hip pain, pus hematuria, and testis swelling; 18 Ingredients Chebulic (Myrobalan) Frusemide Pill for the treatment of kidney problems, lumbar and kidney pain, frequent urination, turbid urine, diabetes, and spermatorrhea; and Pomegranate Nichirin Pill to treat indigestion, back and leg pain, frequent urination, foot edema, impotence, and nocturnal emission. The company also develops Xuezang Guben pill indicated for the treatment of neurasthenia, insomnia, frequent urination, nocturnal emission, and women?s menopausal symptoms; Shengke I that is in Phase III clinical testing for treating type II diabetes; Shengke II, which is in Phase II clinical testing for treating impotence and premature ejaculation, prostrate disease, and memory loss; Jiuzan pill that is in Phase II clinical testing for the treatment of chronic gastroenteritis and peptic ulcers; and Antai pill, a pre-clinical stage product for treating hepatitis B. In addition, it focuses to commercialize Wupeng Pill for treating echimococosis, pandora tingling disease, diphtheria, anthrax, yellow water disease, and leprosy. The company was formerly known as Shangri-La Tibetan Pharmaceuticals, Inc. and changed its name to Tibet Pharmaceuticals Inc. in July 2010. Tibet Pharmaceuticals, Inc. is headquartered in Wanchai, Hong Kong.
Best Prefered Stocks To Watch For 2014: Sound Global Ltd. (E6E.SI)
Sound Global Ltd., an investment holding company, provides water and wastewater treatment solutions in the People�s Republic of China. The company offers design, procurement, engineering, and construction services for turnkey facilities for the treatment of municipal wastewater or sewage, and industrial wastewater from various industries for release into the environment; and facilities for the treatment of tap water, as well as constructs water and wastewater facilities for its build, operate, and transfer projects. It also provides professional operations and maintenance services to local or municipal governments, which include operation and maintenance of water and wastewater treatment facilities. In addition, the company manufactures standard and customized water and waste water treatment equipment, such as grit removers, sludge scrappers, sludge dehydrators, oxidation ditches and SBR equipment, and sludge scrappers for tap water treatment plants; and sells treated wat er. Further, it offers equipment procurement services comprising technical advice and assistance to customers on the equipment that they need for their treatment facilities; procuring equipment for the customers from third party equipment manufacturers based on their technical requirements; and technical and design services to municipal governments, industrial enterprises, and other water and wastewater treatment facilities contractors. The company was formerly known as Epure International Ltd. and changed its name to Sound Global Ltd. in May 2010. The company was founded in 1993 and is based in Beijing, the People�s Republic of China. Sound Global Ltd. is a subsidiary of Sound Water (BVI) Limited.
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