MGM Resorts International (NYSE:MGM) and Las Vegas Sands Corp. (NYSE:LVS) and better than Wynn Resorts, Limited (NASDAQ:WYNN) when looking for Macau gambling plays in the stock market, Jim Cramer said in a recent discussion on Mad Money.
The comment comes from Cramer as he looked at vices and possible investment opportunities for people.
According to Cramer, this is an area that has not been doing great recently. He noted that Las Vegas stopped being the capital of gambling in the world and that Macau has replaced it. Saying that though companies like MGM Resorts International (NYSE:MGM), Las Vegas Sands Corp. (NYSE:LVS), and Wynn Resorts, Limited (NASDAQ:WYNN) which have interests in Macau have gained over the years because of these interests, Macau has turned into a house of pain because a slowdown.
Cramer explained that stocks like MGM Resorts International (NYSE:MGM), Las Vegas Sands Corp. (NYSE:LVS), and Wynn Resorts, Limited (NASDAQ:WYNN have been hammered this year because of Macau due to a number of reasons. First, he cites the Chinese economy. Second, he cites the crackdown on vice by the Chinese government. Third, he said that the Chinese government has cracked down on transit visas for mainland Chinese citizens who want to travel to Macau or Hong Kong. Furthermore, he said that there will be an indoor smoking ban that will be in effect this October.
Nonetheless, he said that though there are bearish headlines surrounding Macau, he believes that the expectations have come down enough for investors to get some Macau exposure. Cramer added that Macau continues to be a long-term growth story because, among other things, its economy is too important for many powerful people in China for them to let it decline.
Learn in the video below at about 3:40 why Cramer likes MGM Resorts International (NYSE:MGM) and Las Vegas Sands Corp. (NYSE:LVS) over Wynn Resorts, Limited (NASDAQ:WYNN) for a Macau play.
John Paulson’s Paulson & Co MGM Resorts International (NYSE:MGM) reported about 23.71 million shares in the company by the end of the first quarter of the year. Another investor in MGM is D E Shaw which reported about 14.91 million shares in the company also in the same period.
Las Vegas Sands Corp. (NYSE:LVS) shareholders includes Rob Citrone’s Discovery Capital Management which reported about 6.02 million shares in the company by the end of March. Anther shareholders is Donald Chiboucis’ Columbus Circle Investors which said it had about 2.86 million shares in the company by the end of the first quarter of 2014.
Among hedge funds with a stake in Wynn Resorts, Limited (NASDAQ:WYNN) is Stephen Mandel’s Lone Pine Capital which said by the end of March that it had about 1.18 million shares in the company. Another investor is Panayotis Takis Sparaggis’ Alkeon Capital Management which reported 775,000 shares in the company during the same period.
Disclosure: None
