I have been looking at CWN for some time and at these levels it has caught my attention.. key points are:
For Macau operations
Macau revenue declining and it continues... (government crackdown on corruption, smoking bands)
Sediment for China growth is down ... pointing to less gambling money..
Junket operator was taken for a large substantial of money .. effecting VIP credit hence revenues
All this when opening new casino/and expanding ...
For Australian operations
Concerns are also on GDP effecting revenue whilst in the midst of developments
Technically
Simply falling knife scenario
My opinion
The strategy is great.. Chinese love to gamble, they are becoming wealthier, they will gamble more in China and Australia in a longer term view
In short term I would be trying to work out the value of the Aussie operations and discount Macau heavily and come to a figure as a entry point..
If I was a holder .. i would not sell as it will be a great company in long term ..
CWN Price at posting:
$9.87 Sentiment: Hold Disclosure: Not Held
