China Stops 'Snakes Swallowing Elephants', as Steel Sector Awaits Trump…

Founder and Strategist, Entext Economics & Strategy

Sean Maher

Founder and Strategist

Entext Economics & Strategy

Entext provides institutional investors with distinctive, actionable asset allocation and thematic research, which typically challenges the market consensus. Our clients range from credit, equity and multi-asset hedge and pension funds to family offices and sovereign funds. 
 
We focus on identifying key inflection points in macro data and relative asset performance amid the 'groupthink'  and confirmation bias that characterizes most investment bank analysis.

Macro Driven Investment Insight

Thematic (Sector/Industry)

United states Consumer discretionary / Thematic (Sector/Industry)

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<blockquote>‘However, given the lagged impact of a spate of policy easing measures implemented since June to bolster growth against trade war risks, we should start seeing sequential revenue growth at the baccarat tables early next year. At current valuations, free cashflow yields across the sector are 7-9% and EV to EBITDA multiples 9-12x, so there is value emerging for the patient, assuming no radical regulatory overhaul while Macau names offer leveraged upside in a wider China/AXJ rally should trade downside fears prove excessive in Q4…’ </blockquote>
Weekly Insight, September 18th (available on Bloomberg at ENTX)
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‘However, given the lagged impact of a spate of policy easing measures implemented since June to bolster growth against trade war risks, we should start seeing sequential revenue growth at the baccarat tables early next year. At current valuations, free cashflow yields across the sector are 7-9% and EV to EBITDA multiples 9-12x, so there is value emerging for the patient, assuming no radical regulatory overhaul while Macau names offer leveraged upside in a wider China/AXJ rally should trade downside fears prove excessive in Q4…’ 
Weekly Insight, September 18th (available on Bloomberg at ENTX)


Macau Casinos Look Winners from China Stimulus