Buy Crown Resorts and Star Entertainment. 

Crown Resorts & Star Entertainment report earnings on the 20th and 21st of February, (respectively).

Both companies’ share price have been under pressure over the past 6 months, which has been a surprise given the strength in VIP gaming revenue that was evident in the last reports.

We feel again, the market has been too negative coming into the upcoming earnings. We expect to see positive upside surprises, relative to current market expectations.

Crown is under Algo Engine buy conditions, therefore, we recommend buying the stock.

SGR is under sell conditions, however, we feel the stock is oversold and suggest buying call options. Buying call options gives you limited risk on the downside and unlimited gains on the upside.

To discuss this strategy, please call our office on 1300 614 002.

Crown

Star

 

 

 

 

Buy Crown Resorts

Crown is a current holding within the ASX100 model portfolio.

The share price was oversold at $11.50 and we’re now starting to see buying interest build.

Also, consider SGR with stop loss below recent pivot low.

 

 

Star & Crown – Trading Update

Crown’s trading update was weaker than expected as main gaming floor revenue was down 0.6%.

Non-gaming revenue growth was 3.5%, while VIP turnover growth was up 13%.

Star Entertainment showed domestic revenue growth of +6.7% but VIP growth disappointed with it coming in flat on the prior period.

Crown looks like good “value” at $12 and is supported by a current ALGO Engine buy signal.

Aristocrat (ALL:ASX) is also looking well supported near the $26 range.

 

Crown – Back In The Buy Zone

We currently hold Crown Resorts in our ASX top 100 model portfolio, following a Algo Engine buy signal back in February at $12.50.

The stock has recently retraced from the $14.59 high made on the 10th August.

We now feel the sub-$13.50 level  provides an opportunity to accumulate Crown shares at a fair valuation.

NOTE: Star Entertainment is also back in the buy zone between $5.13 – $5.30

Crown

Star Group Shines After FY Earnings Report

Shares of Star Entertainment have surged over 7% higher to reach a two-month high of $5.45 in early trade.

The company released full-year results this morning which showed underlying profits rose 20% to $258 million versus the street’s estimate of $248 million.

Much of increase was focused on foreign “high rollers” which lifted SGR’s turnover by 54% to $61 billion.

We see chart resistance at $5.50 over the medium-term.

SGR goes ex-dividend for 13 cents on August 28th.

Start Group Entertainment

Star Entertainment – Buy “high conviction”

Our Algio engine generated a recent buy signal in SGR and we continue to have a positive outlook on the stock and rate this as a “high conviction” buy opportunity.

SGR is set to report FY18 results on Friday 24th August and we see potential upside to market expectations for VIP growth. The new VIP room in Sydney, (which opened in April), should further add to positive revenue growth.

With underlying earnings growth running at 8 – 10%, we expect FY19 EBITDA to increase from $570m to $620m, placing SGR on a forward yield of 5%.

Star Entertainment Group

Buy Star Entertainment

Star Entertainment reports FY18 earnings on the 24th of August and consensus forecasts are expecting underlying NPAT of $255 million, up 15% on the same time last year.

The  1 to 3 year outlook for SGR supports ongoing EPS growth of 10% +, placing the stock on a forward FY19 dividend yield of 4.5%.

SGR is a current holding within our ASX 100 Model portfolio.

Star Entertainment Group