We see recent downgrades and cuts to Street (Macau gambling revenue) market estimates as a sign that short-term valuations are bottoming out — but, based on our valuation analysis, we don't yet believe we're at a short-term bottom," Wells Fargo analyst Cameron McKnight said in a report Friday.
Macau has begun restricting the amount of cash that visitors can bring. As a result, gamblers often borrow money from lenders carrying handheld devices to dispense funds from bank cards to get around the restriction.Chinese officials earlier this year cracked down on the lenders, arresting 12 people in February and March, charging that they used the system to illegally launder money from criminal operations.
Macau officials also ordered jewelry stores and pawn shops at casinos to remove UnionPay card terminals by July 1, a state news agency said Thursday.Sands and Wynn shares were both up about 1% on the stock market today. Sands was down about 16% from a recent high of 88.28 on March 7th and was trading below 50-day and 200-day averages.
MGM Resorts International, which also owns casinos in Macau, rose as well. Melco Crown Entertainment, a Hong Kong-based casino that competes in Macau, was up less than 1%.