Melco Crown Entertainment Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Melco Crown Entertainment (NAS: MPEL) slumped 12% in early trading before closing down 3%. The company said in a statement that it has applied to list on the Hong Kong city exchange and could issue new shares.
So what: The listing is probably a formality. A secondary offering, on the other hand, would dilute existing investors who want nothing to get in the way of a rally that's seen the stock of the Macau casino operator more than triple over the past year.
Now what: To be fair, the selloff may also be due to a broad sector decline. Hong Kong equivalents of Wynn Resorts (NAS: WYNN) and Las Vegas Sands (NYS: LVS) each fell more than 7% on U.S. economic fears, Bloomberg reported. Do you believe the dip in these stocks is a buying opportunity? Weigh in using the comments box below.
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At the time this article was published Fool contributorTim Beyersis a member of the Motley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Motley Fool newsletter servicesformerly recommended Melco Crown Entertainment. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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