Australia's largest stock trading and investment forum Australia's #1 stock forum

CWN

Click for more information

0.25%

$12.09 crown resorts limited

12% in a teacup, page-4

First 4 Last

Share
Profile

Follow
usc75

4,056 Posts.

33

20/10/16

20:39

Post #: 20012285
Share

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...

Expand

Does that figure include the "Whales"?

According to Crown stats, VIPs account for A$71 Billion in Revenues!

Nobody, including Crown, can afford to lose that!

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

0 Great analysis

Reply

Top Stories

US election outcomes: Key economic and market takeaways

PNN

Power gets set for 1000-metre maiden drilling program in Brazil

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

There are more pages in this discussion • 5 more messages in this thread...

First 4 Last

Add CWN (ASX) to my watchlist