Meanwhile MGM and other casino names are showing signs of head-and-shoulders tops. Full disclosure I am long LVS as a long standing drawer pick and short MGM here. (click chart to enlarge)
Macau is the growth engine for the global casino industry, and revenue growth for casinos there seems to be slowing, Wells Fargo said in a report.
That could affect sales and earnings for world's largest casino company, Las Vegas Sands (LVS), and rivals Wynn Resorts (WYNN) and MGM Resorts International (MGM), which all have properties in Macau. It could also hurt Hong Kong-based Melco Crown Entertainment (MPEL), which competes with the Vegas casinos in Macau.
Wells Fargo analyst Cameron McKnight is in Macau meeting with company executives this week. McKnight said in a Monday report that, based on those meetings and channel checks, he expects May revenue for Macau casinos will rise 10% to 14% compared with the same month a year ago. That's well below his earlier forecast for 14% to 16% growth.
