Melco Crown Entertainment Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Melco Crown Entertainment (Nasdaq: MPEL  ) slumped 12% in early trading before closing down 3%. The company said in a statement that it has applied to list on the Hong Kong city exchange and could issue new shares.

So what: The listing is probably a formality. A secondary offering, on the other hand, would dilute existing investors who want nothing to get in the way of a rally that's seen the stock of the Macau casino operator more than triple over the past year.

Now what: To be fair, the selloff may also be due to a broad sector decline. Hong Kong equivalents of Wynn Resorts (Nasdaq: WYNN  ) and Las Vegas Sands (NYSE: LVS  ) each fell more than 7% on U.S. economic fears, Bloomberg reported. Do you believe the dip in these stocks is a buying opportunity? Weigh in using the comments box below.

Interested in more info on Melco Crown Entertainment?Add it to your watchlist.

Fool contributorTim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

Motley Fool newsletter services formerly recommended Melco Crown Entertainment. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.


Read/Post Comments (4) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 05, 2011, at 6:42 PM, spokanimal wrote:

    Las Vegas Sands had a blowout quarter and the stock is now lower than it was before they announced it...

    ... even as a parade of analysts have been upping their price targets on the stock.

    S

  • Report this Comment On August 05, 2011, at 8:07 PM, CASINO535 wrote:

    This is a nobrainer buying opportunity LVS was at $55 several months ago. Now the Sands Coti Center project will be opening another Casino and Hotel complex with 530 additional tables in several months, the valuation will rise.

  • Report this Comment On August 07, 2011, at 12:04 PM, arealityck wrote:

    LVS is The major stock I have owed this year and so far not disappointed. I do believe with its expansions in the far east Earning will only get better and better.

    I live in Las Vegas and the tourist business is allot better then it was.

  • Report this Comment On August 08, 2011, at 12:53 PM, kokseng wrote:

    MPEL get all the earning from Macau. MPEL do not have any property in US. Caanot understand why it was sold down badly.

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