Casino Moguls Lose $100 Billion In Macau Last Year
The full impact on the Macau casino stocks in 2014 is now becoming clearer. It is estimated that of the six Macau casino stocks listed on the Hong Kong exchange, an estimated market value of about $91.6 billion has been lost for the year 2014. As we have reported extensively, Macau has been hit hard in 2014 due largely to the Chinese government’s crackdown on corruption.
Some of the richest gambling moguls in the world like Sheldon Adelson, James Packer and Stanley Ho have taken a huge knock in their bank balances. While some only see doom and gloom for Macau in the near future, Sheldon Adelson himself are amongst those who believe the current crisis is just part of the cyclical nature of gambling and Asia as a whole is where the big potential lies for growth.
To demonstrate just how much the major casino stocks have fallen, James Packer’s joint venture in Macau with Melco Crown reported a 35 percent drop in the value of the stock.
In a survey conducted by Bloomberg, eight analysts believe that gambling revenues in Macau in 2015 will drop anywhere between 9-10 percent with January expected to makeup an eight consecutive month of losses.
Some of the “optimistic” forecasts like that if Morgan Stanley analyst Praveen Choudhary predict growth estimates to fall by 4 percent in 2015 which will be followed by a 10 percent rise in revenues the following year.