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 Macau casino operator Melco Crown Entertainment
So what: From its recent high on Aug. 1 to the low set on Oct. 4, the stock had lost a massive 56% on macroeconomic fears. Recent economic data have shown slowing growth in China, which could hinder consumers' propensity to gamble. In addition, a typhoon had hit China in late September that caused transportation to the island to be halted.
Now what: In the customary monthly report from Macau's Gaming Inspection and Coordination Bureau, it reported that gaming revenue showed a 39% increase in September over the prior year, alleviating fears of the typhoon's effect. The bureau mentioned that it's business as usual and that the typhoon had no major impact on gambling operations. The sell-off and overall market turmoil have made this stock a much more affordable way to gain exposure to gaming growth in Macau, the "Vegas of the East."
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