Investors eye upcoming earnings, expectations high

    Published in: Latest IntelligenceAs the fourth-quarter earnings season looms, investors will be looking to see whether profit growth in Macau’s casino operators justifies their sky-high stock prices. A warning note was sounded this week, with Hong Kong-listed operators seeing a big drop on Wednesday, following a note from JPMorgan saying investors have already fairly priced in the significant future growth potential from Cotai projects, which are scheduled to come online between 2015 and 2017. “We are more concerned that the sector could run out of new positives on the horizon,” analysts at JPMorgan said in a research note. Over the past week, only one out of the six concessionnaires have beaten the benchmark Hang Seng Index.Shares in Galaxy Entertainment (0027.HK) have risen 2.4 percent on a weekly basis to HK$76.9, despite a fall in line with the other casino stocks on Wednesday. MGM China (2282.HK) posted a weekly loss of 4.5 percent to...

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