Melco Crown Entertainment Ltd (MPEL): Today's Featured Leisure Loser

Melco Crown Entertainment ( MPEL) pushed the Leisure industry lower today making it today's featured Leisure loser. The industry as a whole closed the day up 0.5%. By the end of trading, Melco Crown Entertainment fell 34 cents (-3%) to $11 on heavy volume. Throughout the day, 11 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of seven million shares. The stock ranged in price between $10.87-$11.25 after having opened the day at $11.24 as compared to the previous trading day's close of $11.34. Other company's within the Leisure industry that declined today were: Pizza Inn Holdings ( PZZI), down 7.1%, Good Times Restaurants ( GTIM), down 5.9%, Full House Resorts ( FLL), down 4%, and Country Style Cooking Restaurant Chain ( CCSC), down 3.6%.

Melco Crown Entertainment Limited, through its subsidiaries, engages in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in Macau. Melco Crown Entertainment has a market cap of $6.51 billion and is part of the services sector. The company has a P/E ratio of 21.5, above the average leisure industry P/E ratio of 15.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 17.9% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Melco Crown Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Cosi ( COSI), up 7%, AFC ( AFCE), up 6.5%, Empire Resorts ( NYNY), up 5.2%, and Arcos Dorados Holdings ( ARCO), up 4.8%, were all gainers within the leisure industry with Chipotle Mexican Grill ( CMG) being today's featured leisure industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).
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