Bricks and Mortar: Place Bets on Melco

Editor's note: "Bricks and Mortar" is a series of columns written by real estate reporter Nicholas Yulico meant to help TheStreet.com readers generate real-estate-related stock ideas.

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"Be fearful when others are greedy, and be greedy when others are fearful."
--Warren Buffett

Today, I'm going to follow Warren Buffett's advice and be greedy with Macau casino developer Melco PBL Entertainment(MPEL Quote), because the recent Asian selloff has left so many fearful of the stock.

I'll also provide updates on two existing names in the Bricks & Mortar mock portfolio: Ryland(RYL Quote) and Trump Entertainment(TRMP Quote).

Melco shares have fallen 23% since the start of February due to the Asian contagion in the stock market. The company went public in mid-December at $19 a share, and the stock opened Tuesday at $15.46.

The company is a pure play on the casino market in Macau, the Chinese peninsula near Hong Kong that already has surpassed Las Vegas as the world's largest gambling market.

The recent pullback creates a great buying opportunity for the stock, because Melco is poised to deliver some of the best returns on investment in Macau. The region already has been hugely profitable for Las Vegas Sands(LVS Quote) and Wynn(WYNN Quote).

Jim Cramer recently threw in the towel on Melco, but frankly I believe he was just too early on his original bullish call in December after the IPO.