* lost .06 cents, No suprise here
* Market share only 4.9% --- This is not great, and will come under pressure when the Venetian opens.
*Mass Market, is always going to be a big problem for the Crown. They acknowledge that it's a problem.-----Don't be quick to think "who cares" they would be a huge part of the City of Dreams and they spend money on Food and other retail items.
*Operating costs at $121.7 Million will be a number to compare on Q3, it is hard to make much of it at this point.
*The Crown was bringing in about $500,000 in revenues per day, this will be another key metric next Q, and looks to be Better then WYNN's $392K per day. Keep in mind Grand openings usually attract a lot more attention. LOOKS GOOD
*SLot machines NEED MAJOR improvement on! Only $1.8 Million Profit. This is a result of the failure to attract the mass market.
*looks like COD will probably be delayed and cost a bit more, but I almost think thats expected at this point.
*Cash flow looks better than I thought,
*DEBT appears to be understated in this release, I'm wondering if it is being deferred or accounted for differently.
******All in all, I feel MPEL is done tanking, it is fairly valued @ $12-14 for the time being, till more clarity is given next Quarter.
----I would Cover if you are still short. I myslef will go long if it sells off a bit.
points well taken - i found the following to be interesting comparing q2 vs. q1:
--casino gross margins decreased from q1 32% vs q2 15%...different mix or economies of scale?
--selling/marketing expense up more than 2,000%...crown opening-related; however, what is a reasonable amount going forward?
--on balance sheet, a/r up $33 million - what is this?
--on b/s, gaming subconcession & land use rights aren't rolling in conjuction with income statement: there's a $2.3 and $1 million difference?
--q2 reclass of loans from shareholders up to current liabilities - are they expecting to pay off the $115,220 in the current year?
The Gross margins seem hard to quantify as the Crown just opened, or are you speaking of Mocha clubs?
*I found this troublesome Average Daily Room Rate - ADR $ 177 Occupancy 33%. Making total room Revnue only $71.00 per room, (factoring vacancy)
Marketing expense was to be expected, Accounts recievable of $33 Mil could be credit lines they have extended to patrons?? I'm curious as well.
What is the land use payable liability for $37,398,000? Are they paying this off at a clip of $5 Mill per quarter?
Conman played this perfectly. And read us, not mpel, perfectly. He certainly understands this game. Buy and hold people.
He calls himself Conman. If that is not fair warning, then what is? This guy is smart and fair. That did not stop many of us from buying when he was selling and we will be rewarded if we can match his patience and hold our positions as this corrects upwards.