SKC - Sky City

[traineeinvestor]

Have a look at the prices of the Macau companies listed in HK.

The only one I hold is down about 20% in the last month as Macau has closed its border with China cutting off the bulk of the SAR's customers.

[bull....]

Have a look at the prices of the Macau companies listed in HK.

The only one I hold is down about 20% in the last month as Macau has closed its border with China cutting off the bulk of the SAR's customers.

savaged those macau gambling stocks , not surprised i went in one of there gambling hotels when i was in hong kong travelling didnt see a table game under a minimum 100 us bet i was thinking wow these people bet big

[bull....]

Macau casino revenue drops 11.3% in January as coronavirus worries mount

https://www.cnbc.com/2020/02/01/maca...ies-mount.html

[Snoopy]

Casinos are crowded places with mostly Asian/Chinese clientele - entirely logical.

Places to avoid so guess shares too!

I have a love hate relationship with tourism shares. I was an Air New Zealand shareholder until before it was bailed out by the government and I lost big time (about 80% of my investment IIRC). I think that was about the time I read about Warren Buffett having set himself up a hotline to ring whenever he thought about investing in airline shares. Airline shares often look attractive on conventional sharemarket metrics. But the ease with which competition can be set up, the high capital cost of the equipment and volatile fuel prices spiking running costs generally erodes any competitive advantage for potential investors quite quickly.

OTOH Auckland Airport, which sadly has always seemed too expensive to me to invest in, and the likes of Sky City Casino in Auckland (and Adelaide) are natural monopolies. They aren't totally dependent on international travellers. In fact there is some anecdotal evidence that kiwis spends more time at the casino when times are difficult. I believe the recent fall in the Sky City share price is likely justified in the short to medium term. But even if international tourism stopped this wouldn't be the end for Sky City Not all of those Chinese faces you see at Sky City Auckland are tourists!

SNOOPY

discl. Happy to hold SKC through this downturn

[RGR367]

Thanks Snoopy about your sensible thoughts on SKC.
But not only I am holding I will be acquiring more of it now as it has been really a while since I last bought them.

disc: long term holder of SKC as I considered this stock boring since getting enough of them

[Benny1]

I bought in to SKC in the later months of last year.. Can't quite decide whether to grab a few more now to average down or wait to the update in 10 days time...
My head says wait... My Sagittarius side isn't very patient!

[bull....]

skc will take a hit from less punters at casino as well as less tourists in there hotels , wise person wouild wait to skc put out an update in time on how there profits been impacted.

[King1212]

https://www.cnbc.com/2020/02/04/coro...t-updates.html

Not good for skycity. I asked my Chinese tenantwho has family members near Wuhan about the current situation. I wondered it is really bad in China now as the news reported? He said..worse....

[Snoopy]

https://www.cnbc.com/2020/02/04/coro...t-updates.html

Not good for skycity. I asked my Chinese tenantwho has family members near Wuhan about the current situation. I wondered it is really bad in China now as the news reported? He said..worse....

Closing down the casinos in Macau for two weeks is good for Sky City isn't it? Less competition! Unless you are suggesting the bureaucratic contagion will spread to such an extent that security guards will be stationed outside Sky City Auckland refusing entry to 'Chinese looking people'?

SNOOPY

[Balance]

https://www.cnbc.com/2020/02/04/coro...t-updates.html

Not good for skycity. I asked my Chinese tenantwho has family members near Wuhan about the current situation. I wondered it is really bad in China now as the news reported? He said..worse....

And I asked my Australian friend (in Shanghai) who is the GM of a major hotel chain in China and he said it is bad as there has been so much disruption to the management and operation of their hotels - staff quarantined, travelers cancellations, supply lines of products and services disrupted and high anxiety amongst staff. But he said that life continues and since Monday, life has been returning to Shanghai and other main cities.

Closing down the casinos in Macau for two weeks is good for Sky City isn't it? Less competition! Unless you are suggesting the bureaucratic contagion will spread to such an extent that security guards will be stationed outside Sky City Auckland refusing entry to 'Chinese looking people'?

SNOOPY

No travelers coming in from mainland China so biggest impact will be felt in the high roller area of Sky City. Then, there's the accommodation side of the operation.

Sky City is definitely one which is being hit and will continue to be impacted - likewise AIA, THL, MCK and QEX.