The results for the Macau Projections are in! Benzinga readers are optimistic for the future of casino stocks and blame the recent growth decline on the government crackdown in Macau.
Casino shares have been trending lower following disappointing results in Macau amid the region's illegal money transfer crackdown and tight VIP credit limit.
Casinos have felt the pressure from Macau, as the region represents a significant amount of revenue. According to FY 2013 data, Las Vegas Sands LVS and Wynn Resorts WYNN saw 64.3 percent and 71.9 percent of its total revenue in Macau, respectively.
In Benzinga's Macau May meltdown survey, voters were equally split on forecasting if Macau will continue to see slow results in June.
Over 63 percent of voters viewed the regulation as the main catalyst for the decline. Other factors submitted include market correction, New Year shift on the reporting year, profit taking, credit restrictions, economic slowdown and seasonal downturn.
For medium-term growth extending to next year, almost 70 percent of Benzinga readers see shares trending higher.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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