A Snapshot Of The Vegas And Macau Casino Business

Casino investors are taking profits on Thursday following positive monthly gaming revenue numbers from both Las Vegas and Macau. The numbers out of both gaming hubs confirm that strong underlying revenue growth is behind gambling stocks’ recent outperformance.

Las Vegas Strip revenue climbed 8.3 percent in October, while Macau recorded a 14.4 percent revenue gain in November, its biggest jump in nearly three years.

Bernstein’s Take

While traders may be taking the opportunity to lock in gains, Bernstein analyst Vitaly Umansky remains bullish on casino stocks following the latest revenue numbers.

“We view the Macau gaming industry as a secular growth story led by the accelerating paradigm shift from VIP to Mass driven by supply ad infrastructure improvement,” Umansky explained.

Bernstein is now projecting December Macau gross gaming revenue growth of 13-15 percent.

According to Umansky, China’s crackdown on corruption in Macau forced a temporary stall in Macau’s growth and a shift from reliance on the VIP market to reliance on the mass market. Now that the transition is complete, he believes Macau will return to growth over the next decade.

Other Ratings

Bernstein maintains…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!