4-Star Stocks Poised to Pop: Melco Crown Entertainment

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Melco Crown Entertainment (NAS: MPEL) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Melco's business and see what CAPS investors are saying about the stock right now.

Melco facts

Headquarters (founded)Central Hong Kong (2004)
Market Cap$6.2 billion
IndustryCasinos and gaming
Trailing-12-Month Revenue$4.1 billion
ManagementCo-Chairman/CEO Yau Lung Ho
CFO Geoffrey Stuart Davis
Return on Equity (average, past 3 years)0.7%
Cash/Debt$1.5 billion / $2.3 billion
CompetitorsLas Vegas Sands
MGM Resorts
Wynn Resorts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,358 members who have rated Melco believe the stock will outperform the S&P 500 going forward.  

Earlier this week, one of those bulls, All-Star starz188, tapped Melco as a timely bargain opportunity:

This current dip has me excited. ... YES, there are some concerns around Chinese gov't restricting [spending], 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. [Melco] 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. ...

[Melco shares] recently flirted with the $16 range, and so far I see no reason why [long term] it won't grow right on past that.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Melco may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article 4-Star Stocks Poised to Pop: Melco Crown Entertainment originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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