{"id":206117,"date":"2022-03-21T11:23:53","date_gmt":"2022-03-21T18:23:53","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=206117"},"modified":"2022-03-21T13:25:54","modified_gmt":"2022-03-21T20:25:54","slug":"capital-group-pares-stake-in-battered-wynn-macau","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/","title":{"rendered":"Capital Group Trims Wynn Macau Investment, Grosses $11.5 Million"},"content":{"rendered":"

Mutual fund giant Capital Group recently reduced its stake in Wynn Macau, grossing $11.5 million last week in proceeds after selling just over 19.45 million shares of the gaming operator.<\/p>\n

\"Wynn
Two people stand in front of the Wynn Palace in Macau. Capital Group reduced its stake in Wynn Macau. (Image: Anthony Kwan\/Bloomberg<\/em>)<\/figcaption><\/figure>\n

California-based Capital Group, which issues mutual funds under the American Funds brand<\/a>, now owns 5.73 percent of Wynn Macau equity, down from 6.10 percent. Wynn Macau is the China arm of Wynn Resorts (NASDAQ:WYNN) and controls a namesake integrated resort, as well as Wynn Palace in the world\u2019s largest casino center.<\/p>\n

\n

Capital Group\u2019s reduction in its Wynn Macau position arrives amid news that Macau concessionaires are seeing debt burdens increase, though it\u2019s not clear if these items are related. Before the start of the coronavirus pandemic, Macau operators had just $5 billion in combined liabilities.<\/p>\n<\/div>\n

But that figure has since risen to $20 billion, and is forecast to top $23 billion<\/a> by the end of this year.<\/p>\n

Bad Timing in Selling Wynn Macau<\/h2>\n

In financial markets, it\u2019s often said it\u2019s best to \u201cbuy low and sell high.\u201d But even professional investors make the mistake of selling low.<\/p>\n

That appears to be the case with Capital Group\u2019s paring of its Wynn Macau stake, which occurred on March 16 — a day after the stock slid to a 52-week low. Concessionaires there continue facing myriad headwinds.<\/strong><\/p>\n

A recent surge of COVID-19 cases<\/a> in mainland China and Hong Kong \u2014 two of the major travel arteries to Macau \u2014 is extending what\u2019s now a lengthy road to recovery for the world\u2019s largest casino center, pressuring long-slumping share prices in the process.<\/p>\n

\n

China\u2019s zero-tolerance policy regarding COVID-19 is a stumbling block for Macau operators, including Wynn. That\u2019s because it leads to restricted travel when outbreaks occur, keeping gamblers away from the special administrative region (SAR). On that note, analysts expect another sluggish year in terms of Macau’s gross gaming revenue (GGR).<\/p>\n<\/div>\n

“Our current base case assumes Macau\u2019s GGR will be 30 percent-40 percent of the 2019 level in 2022, down from the 60 percent-70 percent we forecast previously,\u201d said Standard & Poor\u2019s in a February report.<\/p>\n

Long Road Back for Wynn Macau, Other Macau Equities<\/h2>\n

While regulatory risk is mostly clear and Macau authorities are extending gaming licenses for current concessionaires while not opening the market to new competition, operators still face challenges. That includes the aforementioned travel restrictions caused by COVID-19.<\/p>\n

Specific to Wynn Macau, that company is one of the Macau operators most tethered to the VIP market, which is under significant duress because of the collapse of the SAR\u2019s junket business.<\/strong><\/p>\n

Analysts believe Wynn Macau can effectively command more mass and premium mass visitation.<\/a>\u00a0But it\u2019s an effort that will take time and potentially try investors\u2019 patience.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mutual fund giant Capital Group recently reduced its stake in Wynn Macau, grossing $11.5 million last week in proceeds after selling just over 19.45 million shares of the gaming operator. California-based Capital Group, which issues mutual funds under the American Funds brand, now owns 5.73 percent of Wynn Macau equity, down from 6.10 percent. Wynn […]<\/p>\n","protected":false},"author":46,"featured_media":206118,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\nCapital Group Pares Stake In Battered Wynn Macau<\/title>\n<meta name=\"description\" content=\"Mutual fund issuer Capital Group trims its exposure to Wynn Macau.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Capital Group Pares Stake In Battered Wynn Macau\" \/>\n<meta property=\"og:description\" content=\"Mutual fund issuer Capital Group trims its exposure to Wynn Macau.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-21T18:23:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-03-21T20:25:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/wynnpalace.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2200\" \/>\n\t<meta property=\"og:image:height\" content=\"1472\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/\",\"url\":\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/\",\"name\":\"Capital Group Pares Stake In Battered Wynn Macau\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/wynnpalace.jpg\",\"datePublished\":\"2022-03-21T18:23:53+00:00\",\"dateModified\":\"2022-03-21T20:25:54+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Mutual fund issuer Capital Group trims its exposure to Wynn Macau.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/capital-group-pares-stake-in-battered-wynn-macau\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/wynnpalace.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/03\/wynnpalace.jpg\",\"width\":2200,\"height\":1472,\"caption\":\"Wynn Palace in Macau. 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