Melco Crown Entertainment Ltd. (MPEL) was recommended by Cabot China & Emerging Markets Report at $10.55 in Investment Digest issue 694, dated May 4, 2011. He recommended selling half earlier this month (click here to read the recommendation, which was sent to Investment Digest subscribers June 2), and is now closing out the position. MPEL closed yesterday at $11.29.
“Last Thursday threw a scare into all stock markets, both emerging and developed, and yesterday’s smaller skid didn’t help things. [One holding] that hasn’t rebounded is Melco Crown Entertainment Ltd. (MPEL). This was a favorite story when China’s growth was stronger, but the Macau gambling business is looking a little shakier.
“We sold half of our position in MPEL earlier, but have been holding on to the other half. While it’s possible that the stock could find support at 11, as it did earlier in June, we’re reluctant to maintain our exposure when the stock has been hacking lower since the end of April. So we’ll sell our remaining shares of MPEL, and we recommend that you do the same. SELL.”
- Paul Goodwin, Cabot China & Emerging Markets Report, June 26, 2012