"Since 2002, Macau has become a gambling mecca like no other, even Las Vegas" says Jim Trippon, who looks at Melco Crown Entertainment (NASDAQ: MPEL).
In his specialty newsletter, The China Stock Digest, he explains "Simply put, the Chinese love to gamble, and the combination of their new freedoms and new wealth have uncorked a gusher of revenue."
He explains, "Melco has delivered industry-beating earnings growth in the booming Macau gaming, entertainment, and hospitality industries. The company's recent reorganization has lifted it from a loss to profitability. Net revenue for the first quarter of 2008 was $482.9 million, up from $179.8 million in the fourth quarter of 2007. That's a 267% jump!
"Net income for the first quarter of 2008 was $43.2 million, compared with a net loss of $36.5 million in the fourth quarter of 2007. In a few short months the company's key asset, Crown Macau, has become the busiest casino in the world in gaming volume.
"Macau's government announced in April that it would rein in the booming gaming industry by halting the issue of new licenses and by freezing land allocations for the construction of more casinos.
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