Melco PBL Entertainment (MPEL)

MPEL's financial statements remain in flux since Crown Macau began operations in the beginning of 2007. The company has historically failed to generate a positive operating income, and still faces many financial uncertainties today. With the onset of new developments and financial liabilities, MPEL is especially vulnerable to these risks.

China is stil in a learning curve when it comes to this aspect of western gaming culture. When they feel they have groomed as much knowledge as they need to run things on say the level of las vegas. They wil divest themselves of all outside interest. What ever we do or have done they aim to do better. Enjoy it while it last.

The gambling industry suffers is subjected to particularly elastic demand. MPEL, which is completely dependent on the industry, will be adversely affected by any form of economic downturn.

With numerous casino developments along the way, supply may out-pace demand and saturate Macau's gambling market, exacerbating the already intense competition in the area. This fact is worsened by the entrance of foreign competitors rich in capital, and the possibility that the local government may allow even more companies into the market.