In NYC, the country’s biggest casino stocks went down for more than 1 year and 4 months with Wynn Resorts, the Sands in Vegas and the MGM that took the biggest hits with their experience to the Macau market. However, according to veterans and the analysts do believe that they have beaten down the stocks and may have pulled down the stocks to the point that it may have gone to the bottom. This might be about time to go slow and then start to place your investment chips back on the table. The Wynn Resort is just one of the top investment options. It is the present with the best in the list according to an analyst. There are lots of negativity priced into the stock.
Wynn has taken the largest thrashing, with its low shares of around 51% of the value within the past 52 weeks. This occurred even if they went up by around 8% on Thursday according to the news. The shares that reached $249 in March of 2014 now went low at $39 in June this year. The shares are now at $104. The Las Vegas Sand shares went down by 44% and now it is around $49 from $88 in March of 2014. The shares of the MGG fell by 42% to a much lower rate of $16 from $28 high just within the same period.
The primary reason is because of Macau, it is the gambling capital in China and it has the world’s biggest casino market. It has been progressive for so many years now and it even overpowered 3 firms that went through massive layoff in 2008. The casinos in Macau have ranked in huge income from high rollers of the casinos and from various gamers who gathered to the hotspot. Macau is the only place in China where gambling is legal and widely accepted. But amidst all of the changes in 2014 when a series of instance occurred and rattled the market in Macau, that caused the revenue from gambling to go down.
The government of China has launched a very hostile anti-corruption campaign, this made the high roller gamers scared, disturbed the famous outing system and then pulled in the reigns in a very aggressive lending. This end up with a big drop off in the VIP method of gambling and so the revenue went down as well. The government also implements strict visa restrictions for the locals, Chinese residents and there was also a new smoking ban in different casinos. All of these made the gaming pubs quite ritzy. The gambling venues in Macau leaped for the thirteenth straight month this June. The rate went down by 36% after a year only. This is according to the data released by the Macau government this week.