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$12.09 crown resorts limited

12% in a teacup, page-2

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3,844 Posts.

11

20/10/16

17:57

Post #: 20008955
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Originally posted by warhorse ↑

Market has been flying blind the last few days, however management confirming "contribution to Crown Group profits attributable to the international VIP gaming program play business from mainland China visitors is substantially less than 12%" has finally quantified the downside.

Even if this business was to go completely to zero, not like they cannot re-direct those resources to source players from other countries, so a 12% hit to earnings would be next to impossible even if the China channel was completely closed.

Overall a 17% hit to the share price, versus a 12% loss of earnings in the extreme case, is likely overdone (particularly post confirmation the demerger and IPO remain on track). Looks like we bounce tomorrow...

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Its the knock on effect for all other casinis that will see this drop further

CWN Price at posting: $10.75 Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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