MGM Resorts International
) recently inked a Strategic Cooperation Agreement with one of
the leading construction companies, China State Construction
Engineering Corporation, Ltd. in Beijing.
This new agreement was seen as a follow-on of its previous
deal with China State Construction. Earlier this week, the
company's majority-owned subsidiary, MGM China Holdings Limited
teamed up with China State Construction to set up a resort in
Cotai, Macau - the only Chinese city where gambling is legal. The
construction of this property, MGM Cotai is slated to be
completed by early 2016.
Under the terms of this latest Strategic Cooperation
Agreement, China State Construction along with its operating arm,
China Construction Americas, will be providing construction
support to MGM Resorts to develop various other new properties
We believe this agreement is in sync with MGM's strategy to
grow through China as well as other major locations. In fact,
MGM's geographical diversification will help it to gain market
share as the economy progresses toward recovery and protect it
from any regional downturns.
Beijing, China based real estate developer, China State
Construction, also remains hopeful about its collaboration with
MGM given the latter's proven track record in the casino
Another casino company,
Wynn Resorts Limited
) also collaborated with China State Construction to build its
integrated resort, Wynn Macau in Macau.
MGM Resorts currently carries a Zacks Rank #2 (Buy). Other
players in the casino gaming industry which look attractive at
current levels include
Melco Crown Entertainment Limited
Las Vegas Sands Corp.
) both carrying a Zacks Rank #2 (Buy).
LAS VEGAS SANDS (LVS): Free Stock Analysis
MGM RESORTS INT (MGM): Free Stock Analysis
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WYNN RESRTS LTD (WYNN): Free Stock Analysis
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