Global expert Benjamin Shepherd looks a trio of top-performing stocks in his model portfolio, each of which remains a buy. In his Global Investment Strategist he reviews a China water play, a Cambodian casino operator, and a Philippines-based fast food operator.
Our best performer, by far, was Beijing Enterprises Water Group (HK:371), which more than doubled, gaining 147.3% over the course of the year.
Despite the continuing macroeconomic challenges across the developing world, the necessity of clean fresh water, for both life and industry, generally outweighs most other concerns.
The group added 49 new water plants to its business in the first half of 2013 alone. It also finished construction of a second sewage treatment plant in Malaysia, further expanding its international footprint. Beijing Enterprises Water Group remains a buy up to HKD5.
NagaCorp (HK:3918) (OTC:NGCRF) gained 82.7% last year. The firm operates Cambodia's only casino in the capital city of Phnom Phenh and has exclusive gaming rights for a 200-kilometer radius around the city until 2035.
Top Medical Stocks To Buy For 2015: NanoTech Entertainment Inc (NTEK)
NanoTech Entertainment, Inc. (NanoTech), formerly Aldar Group, Inc., is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. The Company operates as a manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. As of June 30, 2009, the Company�� products included MultiPin, Xtreme Rally Racing, NanoNET Online System, Pinball Wizard, Mot-Ion Adapter, Opti-Gun Adapter and Retr-IO Adapter. In April 2009, the Company acquired NanoTech Entertainment, Inc. In July 2013, NanoTech Entertainment Inc completed the acquisition of Clear Memories, Inc. of Napa California. Effective August 9, 2013, NanoTech Entertainment Inc acquired Worldwide Global Entertainment, a developer of prepackaged software.
The Company�� physics engine and motion sensors allow MultiPin to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from. Xtreme Rally Racing is a driving machine that features three modes of game play: Xtreme Off-Road-Race Head to Head against other players and the computer to checkpoints while driving anywhere on the map with no preset course; Timed Rally Stages-Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses, and Xtreme Stadium Racing-Custom Stadiums designed for Xtreme racing, including a figure eight multi-lap course with huge jumps. NanoNET Online System is remote operator control of machines, including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net.
The Company has created the input device designed to give the pinball players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin product it has built a controller that lets people play pinball using traditional controls and! the ability to shake and nudge the table. The Mot-Ion adapter is a universal serial bus (USB) adapter that allows do it yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. The OptiGun adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. The Retr-IO adapters provide a standard JAMMA interface for USB based systems.
Advisors' Opinion:- [By Peter Graham]
Nyxio Technologies Corp (OTCMKTS: NYXO), COREwafer Industries Inc (OTCMKTS: WAFR) and NanoTech Entertainment, Inc (OTCMKTS: NTEK) are three small cap stocks in some very diverse industries. In fact, one of these stocks just bought a 3D ice sculpture business. So will investors see their investment melt with that small cap stock�along with the other two? Here is a closer look to help you decide for yourself:��
- [By James E. Brumley]
Looking for a couple of near-term trades that have a decent shot at rallying even if the broad market feels like it might pull back? Then take a look at Liquidmetal Technologies Inc. (OTCBB:LQMT) and NanoTech Entertainment, Inc. (OTCMKTS:NTEK). Although both LQMT and NTEK will be dismissed by some traders simply because they're OTC-listed stocks, for those traders willing to look past the exchange and appreciate the opportunity, the risk-versus-reward ratio is actually quite compelling.
Top 10 Casino Companies To Watch In Right Now: MGM Resorts International(MGM)
MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Travis Hoium]
Cotai continues to be the growth engine of Macau. The Macau Peninsula, where Wynn Resorts (NASDAQ: WYNN ) and MGM Resorts (NYSE: MGM ) are located, have been holding steady but the growth is on Cotai, and that's why investors are willing to pay a premium for Melco Crown and Las Vegas Sands.
- [By Suravi Thacker]
The gambling industry has been growing over the last few years, especially in Macau since it is the only region in China where gambling is legal. In fact, according to the Gaming Inspection and Coordination Bureau, Macau, revenue from this region has grown 20% in the first quarter of 2014. This increase has benefited most of the gambling companies, including MGM Resorts (MGM) and Wynn Resorts (WYNN).
Top 10 Casino Companies To Watch In Right Now: Penn National Gaming Inc.(PENN)
Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.
Advisors' Opinion:- [By Lisa Levin]
Penn National Gaming (NASDAQ: PENN) shares fell 1.71% to reach a new 52-week low of $12.05. Penn National Gaming is expected to report its Q4 results on February 6.
- [By Will Ashworth]
Famed investor Leon Cooperman sold his position in Penn National Gaming (PENN) in the fourth quarter of 2013, replacing it with a 2.2 million shares of GLPI, the real estate spinoff the casino operator took public through a 1-for-1 share distribution last November. Its first acquisition came one month later when it paid $140 million for a casino in East St. Louis. Pure-play REITs come in all shapes and sizes, but never before has there been one in the casino business.
- [By Grace L. Williams]
Next, we turn to another gaming company: Penn National Gaming (PENN). Three insiders bought during the quarter: CEO Timothy J. Wilmott bought 50,000 shares for $537,000; CFO Saul Reibstein bought 5,000 shares for $52,700 and John Jacquemin, a director, bought 20,000 shares for $214,800
- [By Patricio Kehoe] the measures taken to balance out revenue in case of headwinds.
Valuation and Contracts
One factor that plays in this firm�� favor is NASCAR�� long-term contracts with major TV networks and radio stations. The most recent deal is set to launch in 2015, and will bind the motorsport brand for 10 years to NBC and Twenty-First Century Fox Inc. (FOX), for a total of $8.2 billion (45% annual increase over the current contract). Although a more stable economic scenario may reignite concessionary spending among customers, and cause the motorsport segment to gain popularity again, the non-existent switching costs and alternative leisure choices could be detrimental to this company. Also, ISCA�� current $87.9 million cash flow will likely be stagnated by the new Daytona Ring Project, which is expected to cost $400 million over the next five years.
Furthermore, concerns remain regarding the company�� growth metrics, especially given their downward trend. For the fourth quarter in 2013, revenue showed negative growth of 0.5%, a downfall which ISCA has not been able to stall since 2007. Operating margins have also fallen by 9% in the past two years (currently at 12.8%), in addition to the below average (2.02%) dividend yield of 0.70%. Added to a premium P/E value of 33.00x trailing earnings, compared to the industry average of 22.40x, I feel bearish about this motorsports giant�� near-term profitability and see some uncertainty in the long-term future.
Disclosure: Patricio Kehoe holds no position in any stocks mentioned.
About the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics
Top 10 Casino Companies To Watch In Right Now: Sands China Ltd (SCHYF)
Sands China Ltd. (Sands China) is an investment holding company. The Company, along with its subsidiaries, is engaged in the development and operation of integrated resorts in Macao, which contain not only gaming areas, but also meeting space, convention and exhibition halls, retail and dining areas and entertainment venues. The Company operates in five segments: The Venetian Macao, Sands Macao, The Plaza Macao, Sands Cotai Central and ferry and other operations. The Venetian Macao, the Plaza Macao and Other developments derive their revenue primarily from casino, hotel, food and beverage, mall, convention, retail and others sources. Ferry and other operations derive their revenue from the sale of ferry tickets for transportation between Hong Kong and Macau. As of December 31, 2011, its properties included 3,554 hotel rooms and suites, 74 restaurants, 1.2 million square feet of retail, 1.2 million square feet of meeting space, two permanent theaters, a 15,000-seat arena and the casino. Advisors' Opinion:- [By MARKETWATCH]
HONG KONG (MarketWatch) -- Hong Kong stocks sold off early Thursday after the Federal Reserve decided to further taper stimulus, and after a final reading of China's manufacturing PMI contracted. The Hang Seng Index (HK:HSI) sank 1.5% to 21,815.04 in holiday-shortened trading. Tech stocks retreated, as Chinese PC maker Lenovo Group Ltd. (HK:992) (LNVGF) dropped 5.3%, failing to get a lift from news that it plans to acquire the Motorola handset business from Google Inc. (GOOG) for $2.91 billion as Lenovo aims for a bigger presence in the U.S. market. Software developer Kingsoft Corp. (HK:3888) (KSFTF) fell 1.9% and Internet giant Tencent Holdings Ltd. (HK:700) (TCTZF) dropped 1.5%. Casino stocks also declined. Sands China Ltds. (HK:1928) (SCHYF) , the Hong Kong-listed unit of Las Vegas Sands Corp. (LVS) , slipped 0.2%, despite financial results that showed Sands China's net income increased 40% year-on-year to $467 million in the fourth quarter. Melco Crown Entertainment Ltd. (HK:6883) (MPEL) slumped 3.2%, and both Wynn Macau Ltd. (HK:1128) (WYNMF) and MGM China Holdings Ltd. (HK:2282)
Top 10 Casino Companies To Watch In Right Now: William Hill PLC (WMH)
William Hill PLC is a United Kingdom-based gambling company. The Company�� business is to provide its customers with a range of sports betting and gaming opportunities. It is a bookmaker providing fixed odds sports betting. It also offers gaming opportunities. The Company�� segments include Retail distribution channel, which includes activity undertaken in LBOs, including gaming machines; Online segment, which includes activity undertaken online, including an online sportsbook, online casino, online poker sites and other gaming products; Telephone segment, which includes its telephone betting services; US segment, comprises all activity undertaken in the United States; Other activities include on-course betting and greyhound stadia operations. In April 2013, it acquired the remaining 29% stake in William Hill Online from its joint venture partner Playtech Ltd. Effective September 2, 2013, William Hill PLC acquired Miapuesta.es, a provider of gaming and sports betting services. Advisors' Opinion:- [By Inyoung Hwang]
Prudential Plc (PRU), which generated 32 percent of its operating income from Asia last year, climbed to its highest price since at least 1988. William Hill (WMH) Plc lost 3.2 percent after JPMorgan Chase & Co. lowered its rating on the bookmaker. Anglo American Plc (AAL) declined 1.4 percent after saying that production at its Kumba (KIO) Iron Ore Ltd. unit fell.
- [By Inyoung Hwang]
Royal Bank of Scotland Group Plc sank 3.3 percent after reporting results and naming the head of its U.K. consumer unit as chief executive officer. William Hill Plc (WMH) dropped the most in four years after the bookmaker posted earnings that missed analysts��projections. International Consolidated Airlines Group SA (IAG) rose to a five-year high as the parent of British Airways reported an operating profit in the second quarter.
Top 10 Casino Companies To Watch In Right Now: Boyd Gaming Corporation(BYD)
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.
Advisors' Opinion:- [By Dan Caplinger]
The real question is whether Zynga can hold off experienced casino operators if online gambling becomes a reality. Already, alliances are forming, with Boyd Gaming (NYSE: BYD ) and MGM Resorts (NYSE: MGM ) having linked up with bwin.party -- the same company Zynga tapped for its real-money Zynga Poker -- to help Boyd take advantage of newly legal online gambling in New Jersey. Zynga has the obvious edge with its social savvy, but established casino companies will have huge incentives to defend their turf if Zynga starts to make a serious dent in the industry.
- [By Roberto Pedone]
One gaming player that's rapidly moving within range of triggering a big breakout trade is Boyd Gaming (BYD), which owns and operates gaming entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. This stock has been blazing a trail to the upside so far in 2013, with shares up sharply by 115%.
If you look at the chart for Boyd Gaming, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving sharply higher from its low of $11.27 to its intraday high of $14.38 a share. During that move, shares of BYD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BYD into breakout territory above resistance at $13.79 a share, and it's quickly pushing the stock within range of another big breakout trade.
Traders should now look for long-biased trades in BYD if it manages to break out above its 52-week high at $14.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 2.34 million shares. If that breakout triggers soon, then BYD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20 a share.
Traders can look to buy BYD off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One can also buy BYD off strength once it takes out $14.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By Wallace Witkowski]
Shares of Boyd Gaming Corp. (BYD) �rose 8% to $12.75 on moderate volume after hedge fund Elliot Associates L.P. disclosed in a regulatory filing it had acquired a 4.99% stake in the casino operator.
- [By Travis Hoium]
Earnings from Boyd Gaming (NYSE: BYD ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�
Top 10 Casino Companies To Watch In Right Now: Scientific Games Corp (SGMS)
Scientific Games Corporation (Scientific Games), incorporated on July 2, 1984, is a global supplier of solutions to lottery and gaming organizations worldwide. The Company�� products and services include instant lottery games, lottery gaming systems, terminals and services, and Internet applications, as well as server-based interactive gaming machines and associated gaming control systems. The Company reports its operations in three segments: Printed Products Group, Lottery Systems Group and Diversified Gaming Group. Printed Products Group is a provider of instant lottery tickets in the world. The Company�� Lottery Systems Group is a provider of customized computer software, software support, equipment and data communication services to lotteries. Its Diversified Gaming Group provides services and systems to private and public operators in the wide area gaming industry, including server-based gaming machines and sports betting systems and services. On September 23, 2011, the Company acquired Barcrest Group Limited. During 2011, the Company launched MDI Interactive, a content services powerhouse dedicated to delivering gaming solutions for the Internet, mobile and all digital things. In October 2013, the Company announced that it has completed the acquisition of WMS Industries Inc.
Printed Products
Printed Products segment is primarily consists of instant ticket lottery business. The Company generates revenue from the manufacturing and sale of instant tickets, as well as the provision of value-added services, such as game design, sales and marketing support, specialty games and promotions, inventory management and warehousing and fulfillment services. It also provides lotteries with cooperative service programs (CSPs), to help them manage and support their operations. The Company also provides licensed games, promotional entertainment and Internet-based services to the lottery industry. It operates six instant ticket printing facilities across five continents.
!The Company provides lotteries with access to some entertainment brands on lottery products through its subsidiary MDI Entertainment LLC (MDI). The Company�� licensed entertainment brands include Harley-Davidson, Major League Baseball, Monopoly, National Basketball Association, The Price is Right, Wheel-of-Fortune and World Poker Tour. It also provides branded merchandise prizes, advertising, promotional support, turnkey drawing management services and prize fulfillment programs. In addition, it offers lotteries a Web-based platform called Properties Plus, which features players clubs, reward programs, second chance promotional websites, interactive games and, subject to applicable law, a subscription system that enables players to purchase lottery games securely over the Internet. The Company owns 20% interests in LNS ad Northstar, and 49% in CSG.
Lottery Systems
The Company is a provider of customized computer software, software support, equipment and data communication services to lotteries. In the United States, the Company typically provides the necessary equipment, software and maintenance services pursuant to long-term facilities. Internationally, it typically sells terminals and/or computer software to lottery authorities and may provide ongoing fee-based systems and software support services. The Company�� lottery systems business includes the supply of transaction-processing software, draw lottery games, keno, point-of-sale terminals, central site computers and communication platforms as well as ongoing operational support and maintenance services. The Company is the instant ticket validation network provider to the China Sports Lottery.
The Company has lottery systems operating in Argentina, Australia, Canada, China, France, Germany, Hungary, Iceland, Israel, Latvia, Mexico, Norway, the Philippines, Spain, Sweden and Switzerland. In addition, it provides video lottery central monitoring, and control systems and networks primarily to lotteries an! d gaming ! regulators. It also provides software, hardware and support for sports wagering systems. The Company has 50% interest in Guard Libang, a provider of instant ticket activation and validation and inventory management systems and services.
Gaming
The Company is a provider of server-based gaming machines and systems and other products and services to operators in the gaming industry. The Company�� Gaming segment includes The Global Draw Limited (Global Draw), a supplier of server-based gaming machines and systems, and game content primarily to bookmakers that operate licensed betting offices (LBOs) in the United Kingdom, and to gaming operators outside the United Kingdom. The Gaming segment also includes Barcrest Group Limited (Barcrest) and Games Media Limited (Games Media), suppliers of gaming machines, systems and game content to pubs, bingo halls and arcades in the United Kingdom and continental Europe.
The Company provides its Gaming customers with gaming machines, remote management of game content and management information, central computer systems, secure data communication and field support services. It develops its own game content, and supplements its offering with content from third parties. As of December 31, 2011, the Company installed approximately 23,100 LBO gaming machines in the United Kingdom, which included approximately 8,000 LBO gaming. As of December 31, 2011, it had an installed base of approximately 6,100 gaming machines in its United Kingdom pub, bingo hall and arcade business, and installed approximately 6,500 gaming machines outside of the United Kingdom. During 2011, the Company owned a 50% interest in Sciplay, a joint venture with Playtech Services (Cyprus) Limited. It also owns 29.4% interests in RCN, and 20% in Sportech.
The Compnay competes with Pollard Banknote Limited, GTECH, BI Worldwide Ltd., Alchemy3, LLC, ePrize, LLC, GTECH, Pollard, Intralot Technologies, Inc., International Lottery and Totalizator Systems, Inc.! , Inspire! d Gaming Group Limited, Danoptra Ltd, Sceptre Leisure plc, Games Warehouse Limited, International Game Technology, Lottomatica, Bally Technologies, Inc., Inspired, Aristocrat Leisure Ltd, Novomatic AG, Multimedia Games, Inc., WMS Industries Inc., Konami Digital Entertainment, Inc., Amaya Gaming Group, Inc., Cryptologic Ltd., IGT, Microgaming Software Systems Ltd., Net Entertainment NE AB, NYX Gaming Group, OpenBet Technology Ltd. and Playtech Limited.
Advisors' Opinion:- [By Stock Maelstrom]
We are likely approaching the last time I will be reporting on WMS Industries (WMS), the former Williams Electronics. It has agreed to be acquired by Scientific Games (SGMS) for $26 per share, plus the assumption of WMS' modest debt. The deal is scheduled to close by the end of this year. On its own, WMS is having a dismal fiscal year, which ends June 30. For this year, the company, no doubt with distracted management, earnings are likely to end at about $0.90 per share, compared with fiscal 2012's $1.31 per share. Helping drive earnings lower are additional measures the company is taking to drive up revenues, which remain well below last decade's peak. WMS' stock has flat lined the past few months at within three percent of the $26 price. There is virtually no upside, though there is downside if the deal collapses. I see no reason to get invested in WMS.
- [By Travis Hoium]
What: Shares of Scientific Games (NASDAQ: SGMS ) jumped 10% in late trading today after signing an important customer.
So what: The company announced that it has signed a contract extension to provide lottery gaming and instant ticket services for the Oklahoma Lottery. This was actually disclosed earlier this year,�but investors bid up shares leading up to the announcement and nearly five times the three-month average volume of shares traded hands today. �
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