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Andrew Keene Image Andrew Keene President and CEO, AlphaShark Trading

With existing operations and two new casinos in development, don't be surprised if this operator's revenue doubles by 2016, says Andrew Keene on

Melco Crown Entertainment Ltd. (MPEL) is engaged in the gaming and hospitality business. The company focuses on developing and operating casino gaming and entertainment resort facilities centered in the Macau market. The stock surged Friday after Reuters reported that gambling revenue in Macau rose 13.5% in May from a year earlier. Although this figure is lower than what analysts anticipated, they expect that Macau will continue this trend of growth and will continue to surpass year-over-year figures.

Macau is the only place where people can legally gamble at casinos in China. There are currently plans underway to update Macau's infrastructure, which would increase the number of visitors to the gambling enclave. Among those plans are to build a bridge connecting Hong Kong, Zhuhai, and Macau, shortening the time of travel between these three cities. The bridge is set to become operational in 2016.

If investors want to get in on the excitement surrounding Macau, analysts recommend MPEL as the best choice. Melco is one of the few casinos that has a license to operate in Macau and is constantly developing new facilities, particularly in the Cotai Strip. Melco currently operates two casinos in Macau and is building a third near the Lotus Bridge called Studio City.

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