MPEL (Melco PBL Entertainment)
MPEL is a gaming company with exposure to the new Macau development areas. The company is just turning profitable and its IPO faired well. I actually expected it to gain 50% or more from the offering price but the price was $18.50 and it closed just above 21.50 the first day of trading.
The stock came in to test the $19 area and then reversed back up. I got too heavily involved trading it the first few days and was lucky to have not been hurt worse. (see post) I got the position size paired back to a normal level and the position has been working well. I expect there to be a good bit of demand for the stock and i look to LVS as a similar comparison. I look forward to seeing how much i can let this one run as it should be an exciting story.
Jan 12, 2007Yesterday the market had a strong day. This included LVS trading to a new high (in the same business as MPEL). However, MPEL didn't have any strength at all. This makes me concerned that it could be ready to roll over if there is any bad news so I decided to play it safe and take my small gains on this trade and wait and see how things shake out for this name without risking capital on a situation that is not completely clear right now.
1 comment:
Stick with MPEL, it takes about 36 months for an IPO to determine if it will be profitable long term. MPEL has timeshare/condos for sales soon and should bring in over $600M of which will be given as a special dividend to the shareholders.
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