Market Intelligence Center  Jun 24  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center  are highlighting two trades on Melco Crown Entertainment Ltd (MPEL) today after it closed at $19.55 on Tuesday. For more...
TheStreet.com  Jun 12  Comment 
NEW YORK (TheStreet) -- Melco Crown Entertainment shares are falling, down 2.45% to $19.48, in afternoon trading on Friday as pressure mounts on the gaming sector due to an analyst note saying that the floundering Macau gaming region in China...
Market Intelligence Center  Jun 12  Comment 
Thursday’s trading in Melco Crown Entertainment Ltd (MPEL) gives options traders an opportunity for a 60% return. By selling the Jan. '16 $19.66 call and buying the Jan. '16 call at the $17.66 level for a net debit of $1.25, traders will book a...
Market Intelligence Center  Jun 9  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithms on Melco Crown Entertainment Ltd (MPEL) could yield about 7.71% (21.81% annualized, for comparison purposes only) in 129 days. Pair a long position in the stock with...
TheStreet.com  Jun 8  Comment 
NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment were falling 4.4% to $20.02 Monday following a note from analyst firm Sterne Agee that suggests gaming revenue in Macau is falling in June so far. In a note to investors, Sterne Agee...
TheStreet.com  Jun 4  Comment 
NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment are rising by 6.70% to $20.02 in mid-afternoon trading on Thursday, as some stocks in the resort and casino sector take off today amid speculation from Credit Suisse that the Macau...
TheStreet.com  Jun 1  Comment 
NEW YORK (TheStreet) -- Melco Crown Entertainment stock is slightly lower this afternoon, down by 0.16% to $19.31 on Monday, as some casino operators take a hit due to the continuing decline in revenue out of Chinas Macau gambling district....
Market Intelligence Center  Jun 1  Comment 
Melco Crown Entertainment Ltd (MPEL) presents a trading opportunity that offers a 6.57% return in just 137 days. A covered call on Melco PBL Entertainment Macau at the $18.00 level expiring on Oct. '15 offers an assigned return rate of 6.57% or...
Market Intelligence Center  May 19  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithms on Melco Crown Entertainment Ltd (MPEL) could yield about 8.63% (21% annualized, for comparison purposes only) in 150 days. Pair a long position in the stock with the...
Benzinga  May 14  Comment 
In a report published Thursday, Nomura analyst Harry Curtis suggested that investors should avoid investing in casino operators with exposure to the Macau market. According to Curtis, Macau market estimates are beginning to reflect the reality...


Melco-PBL Entertainment (NASDAQ: MPEL) develops, owns and operates casinos in Macau, China. It is the only pure-play Macau casino traded on U.S. exchanges, and one of only six companies authorized to run casinos on the island (others include MGM, Wynn and Las Vegas Sands). MPEL owns and operates the Crown Macau Hotel Casino. MPEL draws day-trippers and tourists of all economic background with its various gambling establishments due to its strategic proximity to China and other fast-growing Asian economies.

Business Overview

The great majority of MPEL’s revenue is generated from its casinos. Income from other sources, including rooms, food and entertainment remains insignificant.[1] It is also important to note that MPEL’s only source of income is from Macau.[2]

Business & Financial Metrics[3]

In 2009, MPEL incurred a net loss of $308.5 million on revenues of $1.33 billion. This represents a significant increase in net loss from 2008, when the company lost $2.5 million on $1.42 billion in revenue.

Key Trends & Forces

  • Chinese Tourism: The Chinese government has eased its regulations on travel permits to Macau in recent years. This phenomenon, along with a rapid increase of wealth and disposable income of Chinese citizens , will significantly fuel Macau’s gaming industry. This trend will also be affected by the ease of currency exchange between the Chinese Yuan and the Hong Kong dollar used in Macau.[5]


MPEL holds one of only 6 authorizations to operate casinos in Macau, a privilege that serves as a significant competitive barrier against other potential market participants. Nevertheless, MPEL’s operations compete with 25 other casinos in the city. In addition, the government of Macau may allow other companies to enter the market in the future, further intensifying competition. [6]

  • Las Vegas Sands (LVS): This company owns and operates The Sands Macao. It is also developing The Venetian Macau.
  • Wynn Resorts (WYNN): Since the opening of Wynn Macau in 2006, this company has actively pursued additional opportunities, and is currently building another large resort casino.
  • MGM MIRAGE (MGM): This company opened the MGM Grand Macau in late 2007. However, like most of American companies operating in Macau, MGM operates primarily in Las Vegas, Nevada.
  • Sociedade de Turismo e Diversoes de Macau: One of the most prominent companies in Macau, This company controls 18 casinos in the city, most prominent of which is the Grand Lisboa.
  • Galaxy Casinos: Similar to MPEL, this company currently operates five casinos and is in the process of developing three more on the Cotai Strip.


  1. 2007 MPEL 6-k, Pg. 13
  2. 2006 MPEL 20-f, Pg. 25
  3. MPEL 2009 20-F pg. 3  
  4. "Tiny Macau Overtakes Vegas Strip", BBC News
  5. 2006 MPEL 20-f, Pg. 26
  6. 2006 MPEL 20-f, Pg. 20
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