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Crown Resorts Limited, expecting to progressively commence operations

Team Veye | 14 Jan 2021 ASX - CWN
Crown Resorts Limited, expecting to progressively commence operations

Crown Resorts Limited (ASX: CWN)

The company “Crown Resorts Limited” (ASX: CWN) on 17 December 2020 made an announcement that the seventh review of the Casino Operator and Licence will be done by the Victorian Commission for Gambling and Liquor Regulation (VCGLR). The last review was concluded in 2018. This review will assess the suitability of Crown Melbourne Limited to hold the casino licence in Victoria. The findings of the review will be reported by the VCGLR findings to the Minister for Consumer Affairs, Gaming and Liquor Regulation (Minister) in 2021.

(Chart source: TradingView)

On 16 December 2020 the company made an announcement in reference to its previous announcement made on 18 November 2020 that it had received a liquor licence on an interim basis for certain non-gaming operations at Crown Sydney, including the Crown Towers hotel, bars and some restaurants from   the New South Wales Independent Liquor and Gaming Authority (ILGA)

The liquor licence had been granted for the period 16 December 2020 to 30 April 2021. The Company was required to re-apply for a liquor licence for the period from 1 May 2021, which will enable ILGA to consider any suitability concerns arising from the ILGA Inquiry before deciding on an extension to the liquor licence. Crown is finalising its pre-opening activities and expects to progressively commence non-gaming operations at Crown Sydney from 28 December 2020.

On 14 December 2020 Crown had provided an update on Class action in relation to Anti-Money Laundering laws: The class action was filed by Maurice Blackburn in the Supreme Court of Victoria. Crown has been served with a writ in respect of this proceeding.  (Data Source – Company Reports)

 

Veye’s Take

Crown resorts with the grant of the licence in Sydney for certain non-gaming operations, including the Crown Towers hotel, bars and some restaurants from the New South Wales and awaiting licence for Victoria expects that it will soon operate in full. The stock maintained its bearish trend from June to October with slight retracements in between. The “Hammer” candlestick was formed on the price charts at the lower end of the Bollinger signalling trend reversal. In the month of November “Bullish engulfing” pattern formation confirmed the trend reversal and the stock witnessed upside move from there.  MACD changed from negative to positive and RSI started with positive divergence. The stock is holding near the upper band of the Bollinger indicating upside move. It can have the potential of gaining significant momentum if it manages to cross $10.60 with volumes. Veye maintains a "Hold" on “Crown Resorts Limited” at the current price of $10.27

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