NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment (MPEL) were falling 4.4% to $20.02 Monday following a note from analyst firm Sterne Agee that suggests gaming revenue in Macau is falling in June so far.
In a note to investors, Sterne Agee CRT analyst David Bain said, "According to our channel checks, Macau table-only gross gaming revenue ("GGR") is MOP3.3 billion (USD$410m) from June 1 to June 7." The June run rate suggests that GGR will fall 46% year over year in June to MOP14.6 billion ($1.8 billion).
"Our June GGR growth forecast range of between -33% and -38% YoY remains unchanged," Bain wrote. "Given abnormal market share and other checks, we believe hold negatively impacted early June results. Still, results are disappointing especially given a two week proximity to the opening of Galaxy's Phase 2."
The analyst note helped bring down shares of casinos with a presence in Macau such as Melco.
About 1.7 million shares of Melco were traded by 11:26 a.m. Monday, compared to the company's average trading volume of about 3.7 million shares a day.
TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MELCO CROWN ENTMT LTD (MPEL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."