Melco Crown Fails to Impress in Fast-Growing Macau

Melco Crown Entertainment has been one of the hottest stocks in gaming over the past three years, but that run could come to an end as operational leverage slows and new resorts have to live up to expectations. First-quarter numbers at Melco Crown showed continued growth in Macau, but VIP didn't grow significantly and mass-market play was only up 25%. 

That may look impressive, but it compares to 81% growth in the mass market for LasVegas Sands' Venetian Macau and 74% growth at Sands Cotai Central. 

There are also questions facing expansions like Studio City, which still isn't guaranteed table games, a factor that could make the resort unprofitable. Fool contributor Travis Hoium sat down to go over the good and bad for Melco Crown in the video below. 

Will this stock be your next multibagger?
Gaming stocks are high-growth, and high-growth stocks are where we like to look for multibagger opportunities. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

The article Melco Crown Fails to Impress in Fast-Growing Macau originally appeared on

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story