Fear Sell Off on Macau Junket 'Crackdown' Breeds New Buying Opportunity (LVS) (MGM) (WYNN)

February 6, 2013 11:02 AM EST Send to a Friend
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Gaming stocks are under a little bit of pressure following a UK Times article recently stating that Beijing is planning to crack down of Triad-lined junket operators following conclusion of the Chinese New Year, expected in late February.

Sterne Agee's David Bain is out with a note on the news today. He says any effort will likely hit Macau stocks rather than gaming revs, at least in the near-term time horizon. Discussions with three junket operators is causing Bain to think that sector weakness will become a buying opportunity.

Though some of the junket operators questioned certain aspect of the UK Times piece, most agreed that a high-profile, almost symbolic move would cause a small chilling effect amongst certain VIPs. Operators also said that any effect would be "on the margin."

News comes as China's incoming president, Xi Jingping, is planning an 'anti-corruption' campaign. With China mounting a bit of a turnaround in terms of economic growth, the trend points to new leadership aiming to keep the momentum going before implementing any disruptive measures.

Stocks in focus today include Las Vegas Sands (NYSE: LVS), Wynn Resorts (Nasdaq: WYNN), Melco Crown (Nasdaq: MPEL), and MGM Resorts (NYSE: MGM), among other players in the segment. For the UK Times report,
News comes as China's incoming president, Xi Jingping, is planning an 'anti-corruption' campaign. With China mounting a bit of a turnaround in terms of economic growth, the trend points to new leadership aiming to keep the momentum going before implementing any disruptive measures.

Stocks in focus today include Las Vegas Sands (NYSE:
LVS), Wynn Resorts (Nasdaq: WYNN), Melco Crown (Nasdaq: MPEL), and MGM Resorts (NYSE: MGM), among other players in the segment." target="_blank">click here.


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