Macau Gaming: High Certainty in an Uncertain Environment
One and only world-class gambling destination in Asia
Best way to understand everything I say here is to visit Macau and see it yourself, if you can. It’s a nice little distraction if you happen to be in Hong Kong for anything.
For investors, Macau gaming is a rare sector in China that offers relatively high certainty, in a largely uncertain environment.
As promised, we dig deeper into the Macau gaming (gambling) story today. Macau (Macao) is a former Portuguese colony in Southern China, now a special administrative region (SAR) of China like Hong Kong.
Investment Thesis
We like the Macau casino stocks for four reasons:
Scarcity value
High earnings visibility
Margin expansion
Improving cash flow and balance sheet
We normally don’t allow more than three points in an investment thesis, because we’d like to only focus on the salient issues. This is a special case.
Macau gaming is also at the core of our Hong Kong Reopening Index. Click below to learn more.
Hong Kong Reopening Select Index +5.4% in July, down 2.6% MTD in August
Please note: any index mentioned here is for information and illustrative purposes only. An index itself does not constitute any actual fund, portfolio, trading strategy or financial product. It is not possible to invest directly in an index. We make no recommendation or offer to buy/sell any securities, portfolios of securities, investment schemes or trading strategies here. Past performance does not guarantee future results.
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