Just a follow up to the run gaming made yesterday>
post #521 of 538
10/9/10 at 5:20pm
Tiptop,do you consider MPEL to be "head and shoulders" above Boyd longterm? I ask because I have Boyd but I am thinking of getting into MPEL instead. Is Boyd junk?
For the long term BYD has a better track record and as Vegas recovers their seasoned management team will do what it takes to raise up the pps. They do have a problem in AC as revenue is declining due to the influence of PA and even though the Borgata is a prime resort there and MGM is jumping ship there is no guarantee that they can over come the declining revenue there. From the recent PR there was a revenue increase on Boulder Highway but Fremont street had another decrease and they have properties in both locals. Of course you are talking long term but the Fremont and AC problems should still be on the table of concern.
MPEL is in the hottest gaming market in world only rivaled by the upstart Singapore. I have had concerns on MPEL as how do they lose money when the Las Vegas Sands is making money across the street? Was somebody not playing with a full deck or was it just bad management. This was apparent in the old Vegas days when the skim was on. ( I did not say that ) They now have a new management team in place as Macau is still setting records and at last note MPEL picked up some market share as WYNN lost some share.
Personally I would put my money in LVS for the long term but if I had to pick between BYD and MPEL I would pick BYD for the safer long term play but MPEL has the higher potential. Until I see some progressive numbers out of MPEL that's the way I call the cards. Looking at the short term I would give MPEL the nod based on the big money that is flowing in.
*It should be noted that not too long ago that biggie John Paulson put his money on BYD, MGM and Harrahs. Even though he bought to high it shows where his long term vision is at. BTW: I am playing some MPEL calls that are inching up towards a 3 bagger for me
After MGM and BYD bombed on earnings today this leaves the top two gaming stocks to cruise to higher highs on their Asian exposure. I am still puzzled on Paulson taking a
position in MGM, BYD, and Harrahs but who am I to judge a world renown guru
Performance against the S&P, Year to Date
LVS up by 70.3%
WYNN up by 44.2%