Chinese IPO Surprise: It's Bad
Nevada stablizing? Gaming stocks got some good news today...October Las Vegas gaming revenue strong. Strip revenue up 16.1% year over year, slot volume up 2.2% (only 2nd time this year up).
MGM gets about 80 percent of its revenue from the Strip, they are far and away the most affected by these numbers. Wynn generates about 25 percent of its revenue from the Strip, Las Vegas Sands less.
Remember there has also been speculation Sen. Reid is trying to get an online poker provision in the tax bill.
AIG: what's up? AIG hits 52-week high on capital reorganization plan. The problem: no one has a clue when the government will start selling its shares (they will own 1.655 billion common shares, 92% of the company). A bigger problem: no one has a clue how to value the company or the value of the parts that it will be selling.
What seems to be happening: traders seem convinced: 1) AIG will continue as a going concern, and 2) they may try to raise money even before the government does. Under the agreement, they are permitted to raise up to $3 billion independently. Wells Fargo speculated this morning that they may do that soon, just to prove they can do it.
Chinese IPOs: showing some froth? Not all the Chinese IPOs have been hits. While Youku.com is up another 27 percent today, and Dangdang is up 9 percent, and SemiLEDs Corporation , a manufacturer of LED chips and components for general lighting, did successfully price at $17 (now trading about $25)....Bona Film Group , a distributor of domestic films, is a dud. On its first day of trading, they priced 11.75 million share at $8.50, within the price talk of $7-$9. But at 1:30pm ET, stocks is...$7.18.
Still, three out of four ain't bad.
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