Feeling lucky?
China’s gaming companies certainly are. That’s the latest from Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan. Jordan sees gaming company revenue heating up, particularly in the “base mass business,” the lowest tier of customers.
It also explains why he’s bullish on Las Vegas Sands (LVS) and Galaxy Entertainment Group (0027.Hong Kong). In the video excerpt above, Jordan discusses the three developing trends in Macau that support his bullish theses for LVS and Galaxy:
- Bet Size Coming Back – “The average bet size has been significantly negative but we might actually see it turn positive which would be a good catalyst for our model.”
- “Base Mass” Growing – “China remains underpenetrated, in our opinion, and we expect to see visitation growth for years to come.”
- “Premium Mass” Upside? – “I don’t hear a lot of people talking about VIPs being converted to mass players, a higher margin business, but if we see more conversion this could be the catalyst to get growth above high single digit low double digit growth we’ve been looking at.”
