Chart of the day
The chart below displays the indexed 52 week trading range for the major stocks with Macau exposure:
- Our Mass Deceleration thesis unfolded faster than we expected, driving the last two legs of the 6 month Macau bear market.
- Yes the stocks are beat up but there is precedent for even lower prices – looking over the past 12 months, not all stocks are on their backs.
- From this view, MPEL and SJM look the most beat up while WYNN, Wynn Macau, and MGM are still trading above the midpoint of their respective 52 week range.
- We’re not there yet, but when we see fundamental stabilization or a catalyst emerge, Galaxy (0027HK) and LVS look the most interesting to us on the long side.