1-Star Stocks Poised to Plunge: Asia Entertainment?


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Asia Entertainment & Resources (NAS: AERL) , which promotes VIP gaming rooms in Macau, has received the dreaded one-star ranking.

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

Asia Entertainmentfacts


Wanchai, Hong Kong

Market Cap

$225.8 million


Casinos and gaming

Trailing-12-Month Revenue

$250.6 million


CEO Leong Siak Hung
CFO Li Chung Ming

Trailing-12-Month Return on Equity



$16.7 million / $108.9 million


Genting Berhad

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

On CAPS, 40% of the 40 members who have rated Asia Entertainment believe the stock will underperform the S&P 500 going forward.

Just last month, one of those bears, FinerPoints, cautioned Fools about getting excited over the company's prospects:

Beware of the legitimacy of business and how they came to listing on the equity markets. Many prior "questionable" Chinese companies were here today, gone tomorrow. Buybacks are empty promises UNLESS the company acts upon them. It's usually a quick way to falsely boost stock interest and valuation.

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At the time thisarticle was published 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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