This Macau casino operator is raking in profits, and as the world's hottest new gambling destination keeps growing, shares may head as much as 40% above current levels.
Macau gaming revenues continue to skyrocket, with growth in May hitting $3.03 billion, up 42% year-over-year. A week-long Chinese holiday and the opening of a new Galaxy Entertainment resort boosted sales in the world’s largest gambling hub.
Melco Crown Entertainment (MPEL) operates City of Dreams, its flagship integrated leisure and entertainment resort and home of The House of Dancing Water, the world's largest water-based performance; Altira Macau, a Forbes Five-Star luxurious casino hotel; and Mocha Clubs, one of Macau's largest non-casino-based electronic gaming chains.
Company Profile
Melco Crown Entertainment Limited, through its subsidiaries, engages in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in the Macau special administrative region of the Peoples Republic of China.
It owns and operates Altira Macau, a casino and hotel resort that features approximately 210 gaming tables plus deluxe hotel rooms comprising suites and villas, restaurants and dining facilities, non-gaming entertainment venues, recreation and leisure facilities, and meeting facilities. In addition, Mocha Clubs provides single-player machines with various games consisting of progressive jackpots, and multi-player games where players on linked machines play against each other in electronic roulette, baccarat, and sic bo.
Chart Pattern
MPEL is currently trading at around $11 and had a recent breakout on very solid volume. While it has pulled back a bit, the stock is still in the midst of a bullish upward channel.
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A breakout accompanied by volume over the $12.06 level could really get this one moving up to the $14-$15 level, which is about a 40% move from here.
By Joe Donahue of UpsideTrader.com
