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Originally Posted by noclue
what gaming companies?
EA? Activision? or gaming as in casinos?
Man oil companies are so tempting right now. I don't really care about small oil companies but im looking at chevron, exxon, BP, halliburton. Maybe suncor. But im still gonna wait it out a bit longer.
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gaming as in casinos - vices are not cyclical.
Analysts will tell you slow down in Macau yada yada yada. Make a visit and take a look with your own eyes. China gamblers can't lose money fast enough. It's in their culture to gamble. To see a smaller subset and extrapolate it to Macau, look at Hastings Racetrack or any Gateway and Great Canadian casino.
In USA and Canada, table minimums are $10 but there are times when you can find $5. In Macau, $500MOP which is about $50/per hand. There is a slow down in VIPs as the China govt is smart, look at Macau visits and you'll weed out your corrupt officials quickly. Casinos with heavy Macau exposure are going into other areas - Russia, Japan and Philippines.
Gambling is illegal in Japan but you have pachinko which circumvents the laws. If you legalize and tax it, all the Japanese visitors (chinese) will gamble their heart out. With the Philippines, you have a disproportion portion of the female population that travels abroad for work remitting money to support their families. Where do you think their deadbeat husbands go with the remittance money? Terrible. Russia and gambling is to take advantage of the Northern Chinese who may not want to travel to Macau (Southern China) to gamble. The gambling guys are smart, follow the money.
There's a HK company with a $3B mkt cap for recently securing the casino license in Saipan. $3B for a piece of paper. Looking into the gambling realm. So long as China continues to mint their millionaires and allow their people greater travel discretion, money will continue to pour out.