MPEL’s Philippine unit opts for private placement: 4/16/2013
I take this as a Very Positive announcement since investors want shares rather then making it go public.
"Macau-based gaming operator Melco Crown Entertainment Ltd has decided to fund its Philippines casino venture via a private share placement instead of a public offering.
According to Dow Jones Newswires, the company is seeking to raise US$377 million (MOP3.0 billion) by selling about 1.1 billion shares in its Manila-listed subsidiary Melco Crown (Philippines) Resorts Corp, our sister publication Business Daily reports.
The money will be used to fund the Belle Grande Manila Bay casino resort being developed jointly by Melco Crown and Filipino Chinese businessman Henry Sy.
This will be the first venture for Melco Crown outside Macau."
So, you think a company that has a half billion shares outstanding at present should increase 1.1 billion. Why not carry some debt at low interest rates, or are they over loaded already.(I don't know the answer). Sorry, but this is not a good move that I can see.
LVS has 800,000 shrs and its considered a large shr count..
I think the Phillipines are a good location, just not the increase in shares.
It is not good news when they add shares, 1.1 billion. The float increases and psr price gets spread over the increased float. It was doing so well, so I think i will get out. It is not good news. The stock increased less than the others today. Now I know why..
How is raising cash to fund new operations that are expected to be highly profitable, not a good thing? Yes, eps today will be less from the share count increase, but it will go up in the near future from increased earnings...
Just for the record smitcompton, only Wynn finished slightly higher today than us today .....And this will ride to $30.00 plus., we will have numbers from Manila very soon, I mean in the next few days and gambling regions will sit up and take notice what just one casino resort can bring in and readjust their numbers.
When Mr Tam of Macau states he is not overly concerned that the Philippines are going in to Casino resort business, he is lying through his teeth. Singapore also know their time is limited as the number 2 gambling hub as within the next 24-48 month Philippines will take them over.
Philippines has a population of 90 million people and guess what they are not all poor, they have a ready made army of visitors to the country from Japan and Korea, 2 million strong and have very aggressive tourisim plans to bring in 10 million visitors by 2017. I have gone through all the demographics, I have spent a lot of time in the Philippines and I have to say this partnership will be the best one yet as they have the best and most data base of all four resorts going up there put together.
In the next 12 months or less when Belle Grande casino opens her doors we can easily double our revenue....Good Luck!
Mr Taxx we should get some numbers out of Manila very soon on how the first Casino Solaire has done on her first month in business, maybe they (MPEL) have got wind of just how much was taken the first few weeks and decided this would be the best lucrative option.