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Melco Crown Entertainment Limited Message Board

  • marketmaker79 marketmaker79 Apr 28, 2014 1:50 PM Flag

    I'm guessing you guys didn't read the Barron's report on Money laundering again...

    If you wonder why this is tanking...

    It specifically names a junket for money laundering. That junket had a presence in MPEL's Casino.

    These things seem to get blown out of proportion and present buying opportunities for MPEL.

    Look for another short attack on IKGH, small promoter looking to get listed in HK, this news might set that listing back.

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    • There has been a lot of noise on VIP play in macau in recent weeks, incl the two referenced in article this morning. LVS also telegraphed two weeks ago that more news was soon coming about fraud witch hunts where the chinese govt is apparently seeking info from junkets (and likely casinos) about "corrupt" govt officials.

      To our knowledge, there are no fraud or any other losses for any of the casinos resulting from the Neptune theft, but the barron's piece is likely correct on one thing, that sentiment is already awful on the group and more noise will not be helpful.

      Someone ought to tell her and the CS "analyst" team that this is the third year in a row that everyone was wetting their pants, pre-summer months, over VIP business being hurt if fraudulent bad guys were removed from the field. Those paying attention know the better operators are pretty careful on credit extension already, and a further revisit is not going to be devastating for the real players and tours, as it has not in the past.

      Meanwhile, MPEL and LVS continue to emphasize premium mass and mass visitation and GGR over VIP anyway, and such segments are far more profitable for the house on holds, and property utilization. As I wrote a couple weeks ago, too, Steve Wynn has been at this game a while and WYNN is likely Snow White on background checks and being careful as they (and MPEL and LVS) have too much to lose by getting caught up in laundering.

      The good news is that today's panic washout may well have finally put in the bottom. Now, if only the companies would issue a PR to clarify they have no losses or concerns regarding the bs noise on corruption or fraud losses for their house, then maybe the sector can return to better valuation of the extraordinary ebitda growth happening in Macau, esp for MPEL in percentage terms.

    • Is that you Jon D?????.....did you initiate a new position in MPEL?

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