Stocks

Looking For An Entry To Short Wynn

Given the negative impact the U.S. trade war with China has had on the broad Chinese equity market, Macau casino stocks have held up relatively well so far in 2019. Unfortunately, some gaming insiders are anticipating that luck will change in the second half of the year.

Andrew Lo Kai Bong, executive director at Suncity Group Holdings, said Friday Macau gross gaming revenue could begin to fall in the second half of the year as trade war uncertainty and slowing growth in China weighs on appetite for gambling.

In addition to the trade war, Lo said events such as Macau’s 20th anniversary celebration and China’s 70th anniversary celebration in the second half of 2019 could also dampen gaming revenue growth.

Success Universe Group deputy chairman Hoffman Ma Ho Man also said Macau’s VIP gaming business has been worse than expected in 2019. He said falling consumer confidence and the trade war are to blame.

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I made some good money on Wynn Resort during the last downturn and have been following Wynn Resorts for over a decade.  Wynn has a huge presence in Macau and their Macau revenue makes up about 90% of total revenue for the company. 

Source

I tried to short Wynn a couple of months ago, but price couldn’t make it up to the monthly supply at $164.

So, now I’m just looking for another entry and will wait patiently, in an attempt to ride price down to my first target at $90.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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