NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment Ltd. (MPEL) may move higher today after the company said it was prepared to invest $5 billion to open a casino in Japan if the country were to lift its ban on casinos, CEO Lawrence Ho told The Nikkei today.
The stock closed up 2.9% to $36.59, and is higher in pre-market trade.
Ho said Melco Crown is in partnership negotiations with several Japanese companies.
He added that if the ban were lifted, the company would select a location in Tokyo and Osaka, and open a casino within four or five years.
TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MELCO CROWN ENTMT LTD (MPEL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."