As reported this week by Bloomberg, pawn shops in Macau are thriving. What, if anything, can investors in the Macau casino space extrapolate from this?
The Macau gaming sector was again in the news today as the Hong Kong-listed Galaxy firm expressed its interest in expanding its Macau casinos.
With Ben Bernanke’s announcement that the U.S. Federal Reserve would engage in a new round of ‘perpetual’ quantitative easing, the risk-on trade looks to be back on, which could mean even more upside for Macao gaming stocks.
Gaming growth in Macao slowed to its lowest levels in three years in July. Revenue from gambling increased a mere 1.5% year-over-year, a far cry from the 40-50% annualized growth seen over the past two years. What does this slowing growth in Macao mean for investors?