Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Melco Crown Entertainment
With that in mind, let's take a closer look at Melco's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Incorporated)||Central Hong Kong (2004)|
|Market Cap||$3.93 billion|
|Industry||Casinos and gaming|
|Trailing-12-Month Revenue||$2.64 billion|
Co-Chairman/CEO Yau Lung Ho (since 2006)
Acting CFO Leanne Palmer (since 2010)
|Return on Equity (Average, Past 3 Years)||(4.3%)|
|Cash/Debt||$441.9 million / $1.84 billion|
Las Vegas Sands
MGM Resorts International
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
About two months ago, Gettingtobeaguru tapped Melco as a rather smart way to gamble: "Casinos are the best way to open up your own mint, short of starting a country. ... I also like the position to take advantage of a higher disposable income per capita in China."
Over the past three years, in fact, Melco has grown its top line at a whopping rate of 94.6% annually. That's faster than casino competitors Las Vegas Sands and its 32.4% annual growth, Wynn at 15.9%, and MGM Resorts' three-year annual revenue decline of (7.8%).
CAPS member akbarcaskey678 elaborates on the bull case:
As of right now the Chinese and other Asians have more disposable income than Americans so I feel the Macau will be booming for years to come and Las Vegas's revenue will continue to recover with the American economy. I like [Melco] better than the Las Vegas plays because this stock does not have enough attention as I feel it should. I feel it is undervalued. MGM and [Las Vegas Sands] are being covered by many analysts and talked about constantly on TV, so I feel that those recent gains in share prices are more because of speculators boosting the volume than the speculation regarding [Melco]. Plus, Macau is just getting started as Las Vegas is more of a turn around play to me. Maybe [Melco] could be the cornerstone of Asian gambling like MGM and [Las Vegas Sands] are to Vegas.
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