Melco Crown Entertainment (NASDAQ:MPEL)

CAPS Rating: 4 out of 5

The Company develops, owns, and operates casino gaming and entertainment resort facilities.

Recs

4
Player Avatar starz188 (99.85) Submitted: 6/27/2012 11:15:10 AM : Outperform Start Price: $10.86 MPEL Score: +108.86

I own MPEL in real life, with a cost basis around $7. This current dip has me excited, and I'm considering adding to my position. YES, there are some concerns around Chinese gov't restricting spend, visits, even length of stay to Macau. YES, revenue growth is slowing a bit in recent quarters.

But it's only slowly. It's not stalling. It's not reversing. Chinese, like many Asian cultures, really like to gamble. MPEL is *the* major local player in the space, and benefits from having those local government inroads. They have a couple of really remarkable properties in Macau. The Cotai strip is the hot place to be gambling in the world. (Singapore is rapidly booming, but that's a different conversation)

MPEL recently flirted with the $16 range, and so far I see no reason why LT it won't grow right on past that.

Member Avatar starz188 (99.85) Submitted: 8/8/2013 9:50:56 AM
Recs: 1

My real-life cost basis is at $6.60, and needless to say, I've thoroughly enjoyed the tremendous run that MPEL has experienced. Sitting on a 4-bagger, profit-taking is a real option.

However, I'm going to continue to hold onto this gem. I've owned shares of MPEL since mid-2008. I watched glumly while it fell to <$3.00 and I'm hating myself for not sticking to my guns and averaging down further. Now I'm faced with another choice: sell high or stick to my guns.

Really the question boils down to whether MPEL can continue to grow it's revenue. Macau is THE place to be, but it's the development in Manila (to open next year) that I really think will add to MPEL's value. Right now, while trading at ~14 times operating cash flow, I think MPEL still has a long way to go.

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