"While the US stock market is signaling immediate-term TRADE overbought (top-end of its risk range), Macau Stocks that we like (WYNN and Melco Resorts & Entertainment (MLCO) are approaching the low-end of their respective risk ranges this morning," writes Hedgeye CEO Keith McCullough. "Buy on red. Sell on green. Stay with the risk management #process."
Here's an excerpt on Macau from our Gaming, Lodging & Leisure guru Todd Jordan in a note to Institutional Research subscribers last night:
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"Friday’s sell off presents a buying opportunity in some Macau stocks. Multiple sources over the weekend corroborated our view that there are very few liquidity issues in the junket system, and none at Suncity, the junket at the center of the storm on Friday. As it turns out, Suncity’s letter to its employees and clients about potential issues at some of the “shadow banks” had nothing to do with its own liquidity or that of any other junkets. Rather, it was a courtesy warning to protect them (and help themselves)." |
