MPEL establishes a Gaming Promotion Agreement with Ama International, a company devoted to the promotion of gambling. The agreement secures MPEL as Ama International's sole patron for three years.
MPEL released third quarter results, which indicated extremely rapid growth due to the opening of its new casino, the Crown Macau.
MPEL announces a second public offering of 37.5 million shares priced at 15.50 each. This act derives from MPEL's need for additional capital for its ongoing projects, but dilutes the company's stock pool.
The casinos and gaming industry is very sensitive to the conditions of the overall market. Most of these companies have a Beta greater than one. A Beta of 1.0 means that the stock exactly follows the market. If a Beta is greater than one, then the stock is responsive to changes in the market. For example, MGM has a Beta of 1.38. For every dollar that the market increases, MGM will increase by $1.38. Likewise, if the market decreases by a dollar, MGM will decrease by $1.38. After the sub-prime lending crisis of August 2007, the market recovered and lifted MPEL up along with it-- at a faster rate than the market. Although there is not yet enough data to calculate MPEL's Beta, the stock is certainly more volatile than the market.
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