Boston, MA 06/05/2014 (wallstreetpr) – Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) shares decline as the Macau May casino growth comes at 9.3%. It is a disappointing figure. Macau, the casino world, reported the monthly gaming revenue at $4.05 billion. It was up 9.3% from a year earlier but still was not at par with the street’s expectations. All the casino companies including Melco saw the shares drop after the numbers.
The growth is good
The stocks of famous companies like Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) might have declined after the numbers. It doesn’t mean the numbers are bad. Sometimes markets just behave in an irrational way. It is nothing more than a slight correction in the strong run. The shares prices may not always support the actual figures. Also, it is not easy to predict the number on a monthly basis. The long term growth of all the casino companies stays strong. Melco is trading high at with strong fundamentals and in the locations that are disposed of to gaming. The casino market holds a lot more potential and provides ample opportunities to grow in the coming time.
The lower numbers in May
The casino revenues number came below the expectations. The higher difference in the revenue was seen because of the low contribution from the VIP revenue. Apart from the VIP revenue, the other market continued to show the strength. The mass market was profitable with a growth of 30% clip. The decline in VIP revenue was largely offset by the revenues coming from the mass market. VIP revenue may remain stagnant for next few months.
No cause of worry
Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) is one of the leading companies in gaming and hospitality business. The company will not be affected largely by the slowdown from VIP revenues. The medium to long term growth story of the companies with operations in Macau remains intact.
