Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: The casino sell-off continued as shares of Wynn Resorts
So what: The fear about a slowdown in China is the new hot-button issue, and gaming stocks with exposure to China are taking it on the chin as a result. Wynn, Las Vegas Sands
Now what: Like I said yesterday, this "slowdown" needs to be put into context. Growth has been accelerating throughout 2011 and reached its peak of 57% last quarter. So a slowdown isn't the end of the world.
I will also point out that the "experts" predicted Macau's gaming revenue would grow just 20% earlier this year only to raise the estimate to 30%, a number Macau will easily crush. With gaming stocks now trading at low enterprise value/EBITDA multiples compared to earlier this year, I think these stocks are ripe for the picking.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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