Melco PBL Entertainment(Macau) Limited
The stock has come back very well over the last few weeks. It is quite an interesting chart when you compare it with its peers over their initial years. Ho and company’s failure initially right after coming public caused people to go skeptc about their capabilities and many started to more over to the peers with much a better performance reports 😀
Many boooed the management (including me), many wrote against the company, very few talked ‘with’ the company (me here tooo), backed it, and then had to fight and face booos themselves on a lot of forums. Most people said HO and co have dumped them and made money and the company now was a dog. Some said it was exhibiting similar charecteristics like any other casino or any other good company has done. They even argued it was time to average down seriously. There were days on the forums when people literally cried, shouted, called Macau and talked to investor relations. They were afraid if the company was losing out on the construction going on …..those costs and time overruns created a sense of insecurity among many. And the US credit crunch neither did any help. But,
The recent results stated that the parent company has turned out o making profits which put MPEL back in the spotlight. The latest numbers from the month of Sepetember 2007 drew both positive and negative comments. Some think that the growth has slowed and some think that October actually starts attracting people into casinos. And can anybody even try to drill negativity into people about OLYMPICS next year?!!!The stock went down huge in the first 6-7 months expelling most smaller individual investors.
Even some big wigs on Wall Street, like Jim Cramer, changed their stance to a ‘NO’ after their initial Booyaaaas. Though, the stock still is under performing on valutation, taking future projects into consideration, the companies results with porifts would attract more institutional investors. The situation is almost perfect for MPEL to report good numbers and give a good guidance for the coming years. Though, it’s seniors, as I may kid, WYNN and LVS have been completely out performing it on the street, I think its high time for MPEL to catch up. I’m bullish both long term and short term on MPEL now. Though, I should disclose that I just sold half my position in the stock yesterday 02/10/2007 at around 18.25 or so and will be looking for a potential dip to get my shares back. (That’s only my trading portfolio. My long term portfolio remains un touched)