While founder Stanley Ho lies in a Hong Kong hospital recovering from August brain surgery, SJM has moved forward with the opening of new casinos-L'Arc last month, Oceanus by the end of the year.

In a bid to fund operations in the midst of the worldwide economic downturn, SJM last month announced it will sell convertible zero coupon bonds to raise US$258 million. In the face of Asian IPOs by Wynn Resorts, Las Vegas Sands and possibly MGM Mirage, it's likely that SJM wanted to get the jump.

"Investors may be concerned that upcoming IPOs are not doing that well and Wynn's IPO may also affect the overall perception of the entire sector," said Gabriel Chan, a Hong Kong-based analyst at Credit Suisse Group AG. "SJM may have wanted to raise funds before that."

Ho, meanwhile, hasn't been heard from, even though his family insists he is recovering normally. But even reports that he is moving from one hospital to another were headline news in Macau. And because there is no succession plan, investors are understandably nervous about the 88-year-old's health.

"Stanley's health condition is a big concern for some investors, even though the company itself is run by a team of professional managers," Chan said. "The question remains that if Stanley's not around, would relationships with junket operators in Macau be lost? If Stanley comes out of hospital looking healthy that would help the share price."

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.