We'll of course see if it works but some stocks got ridiculously cheap/European autos

Whether the steps the Chinese government are taking (they announced another over the weekend, people will be able to refi their mortgage at the current lower rate) is successful in putting a floor in the deterioration in its housing market and the lift in stocks can hold we'll only have to see of course but I wanted to illustrate how ridiculously cheap some of the stocks there were prior to this and that was the coiled spring for an eventual rally. I'll focus on the Macau stocks again, that I've been positive on since the reopening there and it hasn't been fun being long until last week. 

Let's take Wynn Macau (1128 HK and a stock I own). As of just a few weeks ago this stock was trading around where it sat for most of 2022 when the country was basically closed. In Q1 2022 Wynn Macau had revenues of about $300mm, helped by the Lunar New Year annual holiday. It was followed by Q2 2022 revenues of $117mm and a similar amount in Q3 2022. EBITDAR was negative in all 3 of these quarters. 

In Q1 2023, just after the shutdowns ended, their two casinos in Macau, Wynn Palace and Wynn Macau, did a combined $600mm of revenue and $156mm of EBITDAR. Q2 2023 saw $770mm of revenue and $247mm of EBITDAR. Q3 reported revnues of $820mm and EBITDAR of $255mm. 

In Q1 2024, did $1b of revenue and $337mm of EBITDAR, also helped by the holiday. In Q2, both did $885mm of revenue and $281mm of EBITDA. We'll see Q3 results in early November. 

In 2019, the stock was trading at about 13x EBITDAR vs around 7x a few weeks ago. Yes, debt is higher but not by much helped by delevering over the past year. 

Another, Melco Resorts & Entertainment (MLCO and a stock we/I own) was at $22 in February 2022 and hovered around $5 in most of 2022. In late August 2024, it was back to around $5. Yes, they have more debt, $7.2b as of Q2 2024 vs $4.7b in Q1 2020 but have been quickly delevering too and have since added a major European casino resort in Cyprus to their portfolio.