Melco Crown Entertainment Ltd (NASDAQ:MPEL)’s crowning glory over Las Vegas Sands Corp (NYSE:LVS)

Posted by Steve Raasch September 26, 2013 0 Comment 2992 views


There was a time when the Las Vegas strip was the monarch of the global casino gaming market. But all that changed in 2006 and Macau dethroned the king and now companies like Las Vegas Sands Corp (NYSE:LVS) have been pushed into the shadows and those like Melco Crown Entertainment Ltd (NASDAQ:MPEL) have catapulted into the limelight. The primary reason for this transition is its geographical location. Macau is near Hong Kong and more accessible for people in countries like Thailand, china, South Korea, Japan, Malaysia, Philippines, Singapore and the likes. That’s exposure to a whopping 2B people.

The shine fades

It’s not that Las Vegas has lost its charm but it definitely has lost some of its sheen. And maybe the largest gambling conference that took off on Tuesday in Las Vegas will add some luster to Las Vegas Sands Corp (NYSE:LVS)’s business. There are glitzy performers and shimmering slot machines. The high and mighty of society from across the planet will surely be heading there for a shot of glamour, gambling and fun.

This summer, Geoff Freeman took over the reins of the American Gaming association. He mentioned that high on his priority list for the forthcoming year is coaxing state regulators to ease the restrictions that currently prevail in the casino industry. He will be urging that these be streamlined and made more uniform. He said that the one reason why the casino industry is unable to update is due to the regulatory environment. He said there are definite spots at which the line is crossed which has an adverse effect on innovation and files away the competitive edge.

Wednesday’s trading

In Wednesday’s trading session, Melco Crown Entertainment Ltd (NASDAQ:MPEL) stock rose by 2.81%. The shares opened at a price of $31.17, climbed to an intraday high of $31.99 and headed to a close of $31.78. Approximately 2.64 million shares were traded on Wednesday and an average volume of 2.51 million shares were traded over a period of 30 days. The 52-week low of the shares was $12.72 and the 52-week high was $31.99. The company has a market capitalization of $17.56 billion.

On Wednesday, Las Vegas Sands Corp (NYSE:LVS) stock dropped by 0.27%. The shares opened at a price of $66.15, climbed to an intraday high of $66.63 and headed to a close of $65.92. Approximately 5.32 million shares were traded on Wednesday and an average volume of 4.51 million shares were traded over a period of 30 days. The 52-week low of the shares was $40.28 and the 52-week high was $66.63. The company has a market capitalization of $54.32 billion.

About the companies

Melco Crown Entertainment Ltd (NASDAQ:MPEL) is an owner and developer in the hospitality and gaming industry. Via Melco Crown Gaming, its subsidiary operator, it focuses on the Macau market.

Las Vegas Sands Corp (NYSE:LVS) is a company that develops destination properties. These feature gaming, accommodations, retail and entertainment, exhibition facilities and convention, celebrity-chef restaurants as well as other amenities.


About Steve Raasch

Steve Raasch is a breaking news reporter for GDP insider. During his nearly two decades of editorial experience, Steve has covered a variety of topics including small business, health, personal finance, advertising, workplace issues and consumer behavior. Steve is very passionate about his work. Steve earned a master of arts degree in international relations from the Johns Hopkins University School of Advanced International Studies in Washington.

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