Betting on the success of Macao's casino operators in rebranding themselves to draw holidaymakers and their families is a big gamble.

If you are game enough, it may not be the craziest thing to do to try to make some money in this listless market that seems to have lost all sense of direction.

Macao casino stocks listed on the Hong Kong bourse have gone into a freefall since high rollers from the Chinese mainland began staying away from Macao amid the mainland's massive anti-corruption drive.

In the past few months, Macao casino stocks have lost up to 50 percent of their value. SJM Holdings, for example, has lost 54 percent in the past year, while Wynn Macau was down 45 percent. Meanwhile, at least three new casinos are said to be coming onstream for a share of the dwindling cake. Many Hong Kong stock analysts have predicted that Macao's gaming business will not recover any time soon.

But, there are also those who still believe that all the negative factors hitting casino stocks have been largely discounted with the latest price adjustments.

They note that none of the key casino operators is losing money, and their cash flow has stayed healthy. Several investment firms, in fact, are recommending "buy" for casino stocks at current prices.

Matthew Ossolinski, chairman of Ossolinski Holdings - a global fund that invests in gaming companies - has been quoted as saying: "We're preparing for a 100 percent increase in share prices (of casino stocks) within the next three years."

Although sounding less bullish, some analysts believe that casino firms can turn the tide in their favor by investing in new facilities and attractions to lure holidaymakers and their families. But that's going to be a hard-sell exercise because Macao has an image problem.

In the past, the glitz of decadence had been an asset that captivated the imagination of many visitors looking for an escape from their daily mundane strife.

But few of them would want to expose their children to the less than savory elements involved.

To compete with various well-established markets for family travel in the region, the casinos would have to work with the Macao government to do much more than just build infrastructure. The difficult part is in the rebranding.

If you feel they can succeed, you'll find Macao casino stocks a real bargain.

(HK Edition 10/19/2015 page6)