Keep an eye on casino stocks.
Some of the big ones – including Wynn (WYNN), MGM, and Las Vegas Sands (LVS) took a hit as China moves to tighten control of the industry.
According to GGR Asia, “The Macau government wants to increase the share of the mass-market segment in the casino industry, and pledged to implement strict oversight on the allocation of new live-dealer gaming tables. The goals are stated in the draft version of the city’s second Five-Year Development Plan, which was released on Monday for public consultation.”
However, despite the panic, some analysts say it won’t have a significant impact on operators.
“Our view remains that the six operators here today will be here tomorrow,” Bernstein analyst Vitaly Umansky said in a note, adding that he didn’t see “any major concerns” over the government’s planned direct supervision as the gaming companies have already been working closely with officials, as noted by Bloomberg.
At the moment, shares of Wynn are down $7.50 a share to $84.77. Wait for the panic to subside before taking a position. After breaking through double bottom support, the WYNN stock could test support just under $70.
MGM is down about $2 a share. It’ll be interesting to see if the stock can hold triple bottom support around $36. If not, it’s next line of support is around $34. Even LVS is down about $1.65 at double bottom support.
Right now, it’ll all about waiting for the panic to die off.
