Five companies with huge exposure to China

Wynn Resorts

Resort and casino operator Wynn Resorts (WYNN) relies heavily on the Chinese gaming market. The company pulls in around 75% of its total revenues from China. WYNN has enjoyed steady gains over the last year, weathering a sexual misconduct scandal centered around the company’s founder – Steve Wynn. Mr. Wynn has liquidated his holding in the company, which in March announced it would issue a 4.9% stake to one of its biggest competitors in the Chinese market – Galaxy Entertainment, a deal worth around $1 billion. WYNN’s license in Macau will expire in 2022, and cutting ties with Mr. Wynn and having a local partner greatly increases the company’s chances of extending its license. It should also give WYNN an advantage when the time comes to apply for a license in Japan, which is preparing to legalize gambling, and whose market could generate $25 billion in revenue when casinos begin to operate in the country in 2023. WYNN trades at $191.62 with an average price target of $205.25.

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Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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