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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (26301)	3/13/2007 1:58:41 PM
From: JakeStraw	Respond to of 78622

No pun intended, but MPEL is a gamble..

To: Madharry who wrote (26301)	3/13/2007 7:31:31 PM
From: gcrispin	Read Replies (2) \| Respond to of 78622

Here is why I bought MPEL. The company does have a history of operation in Macau as only one of six companies having gambling concessions. I view buying a casino in Macau is akin to buying Vegas in the fifties. Slides 20-25 of the latest WYNN Bear Stearns presentation shows the growth potential for Macau. MPEL's will have one hundred percent exposure to the Asian market as its first casino is planned to open the second quarter of this year. Two more are currently planned. Wynn has one casino operating and plans for another. The article states that there are certain advantages that MPEL will have over American companies. I understand that advantage comes with a risk. But I feel a "local" operator will have a hometurf advantage to the Sands or Wynn. From the article: "Discounting back the company's 2009 cash flow, the stock is trading at a one-year forward EBITDA multiple of 11." Certainly that is a guesstimate number. But WYNN doesn't look cheap on a enterprise to EBIDTA ratio either. (Enterprise value for WYNN is 12 B) finance.yahoo.com I like the institutional holders that currently own MPEL. Janus Overseas fund has done well in the past. Finally, because of its speculative nature, MPEL will have greater volatility. It fell six percent today vs. two percent for WYNN. Since I will mostly likely trade some of my shares, I like the volatility factor.