In today’s briefing:
- Japan Apparel Rethink: World Tries Diversification
- Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions
Japan Apparel Rethink: World Tries Diversification
- The outlook for big apparel remains uncertain; most executives are optimistic about a rebound in sales of premium apparel brands, they are also running around looking for ways to diversify.
- Despite years of closing stores and a recent re-listing, World Co Ltd (3612 JP) remains in uncertain territory as it tries to boost sales of key brands.
- More brands may need to close but the apparel firm is at least investing in new ventures, even if small scale.
Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions
- No stock in the sector among major operators has taken a bigger hit than Melco, down over 60% this year.
- The bet is tied to whether Beijing will begin to ease travel bans and lockdowns or not before the end of this year. If so, Melco is very cheap here.
- Performance of its Manila property, the opening of its new Cyprus resorts could carry the company safely until Macau recovery is in place.
Related tickers: World Co Ltd (3612.T), Medical Developments International (MVP.AX)
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