According to the filing, “the new program permits the company to purchase up to $500 million of its ordinary shares and/or its American depositary shares over a three year period commencing June 2, 2021… Purchases under this authorization may be made from time to time on open market at prevailing market prices.”

Melco stock’s primary listing is on the Hong Kong Stock Exchange. Its Nasdaq listing represents the aforementioned American depositary shares. It doesn’t overtly say as much in the regulatory document, but Melco could be sensing value in its shares.

The company has seen its US-listed stock tumble nearly 28% from its early March highs. The name is off 11.24% over the past month. Those figures could indicate the operator sees value in its equity, and that it’s looking to scoop up shares ahead of Macau recovering.

Basically, companies across all industries are criticized for announcing buyback when share prices are high and eschewing those plans when stock prices are depressed. Obviously, Melco is doing the opposite, and it could work in favor of patient investors.

It will be interesting to see how much of the $500 million the casino operator spends on repurchasing its shares, because no company is obligated to exhaust the entire amount of a proposed buyback plan.

Additionally, some research firms are concerned about Melco’s debt burden. But the company’s balance sheet is in decent shape, with almost $2 billion in cash.

As for potential looming catalysts for Melco, those would include a credible recovery in Macau taking hold in the second half of this year. It also hopes for favorable news emerging from Yokohama.

Editing by Rachel Hu

The post Melco Resorts says it will buyback US$500 million worth of its own shares appeared first on 博讯头条-全方位博彩新闻网站.

Traders subsequently realized the gaffe and rapidly departed the gaming name, sending it back below $39. Shares of MGM Resorts closed at $38.75 during normal trading hours.

According to the Information, Amazon is mulling to buy MGM, the movie studio, in what would be the e-commerce giant’s latest push into entertainment. The Hollywood company is well-known as the home to the James Bond franchise. It also produces several cable and streaming shows, as well as popular reality fare.

As for MGM, the gaming firm, even with the after-hours retreat, the casino giant is one of the better-performing large-cap gaming equities this year, with 23% gain.

There’s a time when the Vegas and Hollywood sleeves of MGM were one

In 1969, the late Kirk Kerkorian bought 40% of studio Metro-Goldwyn-Mayer, later bringing the iconic brand to Sin City. That lead to the creation of corporate entities MGM Grand Inc., MGM Mirage and, ultimately, MGM Resorts International.

Tracinda Corp., a holding company for Kerkorian’s estate for his two daughters, at one point owned 16.2% of the gaming firm. That stake was pared in subsequent years, and was liquidated entirely in September 2019.

In 2020, Kerkorian’s estate donated $4 million to MGM Resorts Employee Emergency Grant Fund, which was set up to assist workers displaced by the pandemic.

The speculation of Amazon entering wagering space

There has been some talk about Amazon eventually entering the gaming space. But it’s just speculation. Much of that chatter is driven by the company holding an 11 year deal with the NFL to stream 15 games a year.

Amazon Web Services, the world’s largest cloud computing outfit, is also the provider of next generation analytics and statistics to the NFL, prompting some talk the company could move into sports betting data at some point.

However, Amazon hasn’t publicly commented on any plans to move into the casino or sports betting businesses.

Editing by Rachel Hu

The post Amazon, MGM Studios rumor accidentally push MGM Resorts stock soaring appeared first on 博讯头条-全方位博彩新闻网站.