Friday, July 8, 2011

Macau the next Bubble?

Macau is in a once in a lifetime Bull market.

Names that you can get into

Galaxy, SJM Holdings, Wynn Macau, Sands China

A concern may be that China growth is slowing - however, there seems to be a decoupling of china growth with Macau revenue growth.

There will be a cap on casino openings until 2012, and the current visitation levels have remained steady in the last 5 years.
The continued improvements in infrastructure continue, the levels of visitation is likely to increase, which effectively will prolong the revenue growth.

Continued developments from the major players in 2012+ will likely see continued tourism growth and demand for Macau services.