Melco Crown Shares Popped: 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 Macau casino operator Melco Crown Entertainment (NAS: MPEL) are roaring higher today, gaining as much as 16% on the sentiment that maybe the stock's recent sell-off was a little overdone.
So what: From its recent high on Aug. 1 to the low set on Oct. 4, the stock had lost a massive 56% on macroeconomic fears. Recent economic data have shown slowing growth in China, which could hinder consumers' propensity to gamble. In addition, a typhoon had hit China in late September that caused transportation to the island to be halted.
Now what: In the customary monthly report from Macau's Gaming Inspection and Coordination Bureau, it reported that gaming revenue showed a 39% increase in September over the prior year, alleviating fears of the typhoon's effect. The bureau mentioned that it's business as usual and that the typhoon had no major impact on gambling operations. The sell-off and overall market turmoil have made this stock a much more affordable way to gain exposure to gaming growth in Macau, the "Vegas of the East."
Interested in more info on Melco Crown? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.