Wynn Resorts NASDAQ:WYNN and Las Vegas Sands NYSE:LVS to Sell Off
Wynn Resorts NASDAQ:WYNN and Las Vegas Sands NYSE:LVS to Sell Off
Shares of casino operators in Macau fell in Hong Kong trading on a newspaper report that China plans to crack down on junket operators that bring in gamblers from the mainland.
Wynn Resorts NASDAQ:WYNN subsidiary Wynn Macau (HKG:1128) gave up 6.8 percent to close at HK$19.44.
Tycoon Stanley Ho Hung-sun’s SJM Holdings (HKG:0880) tumbled 6.4 percent to end at HK$19.84.
Las Vegas Sands NYSE:LVS subsidiary Sands China fell 5.2 percent to HK$36.3, where Galaxy Entertainment (HKG:0027) slipped 5.4 percent to finish at HK$33.0.
Wynn Resorts NASDAQ:WYNN and Las Vegas Sands NYSE:LVS could both do with a sell off, the valutaion on both has gotten above our targets at HCM, WYNN is particularly overvalued.
In terms of the numbers, this is not a great time for WYNN to be embarking on a major court battle, valuation is high, profits are falling and without Kazuo Okada we feel that the WYNN business in Macau and Asia is now at risk.
Kazuo Okada was the lead in the development and success of Asia for WYNN, replacing him will not be easy.
We have cut WYNN from a hold to a sell.
LVS has better local relationships and will grow at a much faster rate than WYNN, if you like casino stocks, you should also take a look at Genting, it is a Must Own on the HCM Ratings.
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