Keith bought MPEL in the Hedgeye Virtual Portfolio at $9.61. According to his model, there is TRADE resistance at $9.98 and TREND support at $9.19
As we mentioned yesterday in "MACAU: A DETAILED ANALYSIS OF THE DECEMBER #S", we believe MPEL should exceed consensus Q4 EBITDA estimates by the largest margin among the Macau operators. Currently, we're 12% ahead of the Street. MPEL’s continued growth in Mass revenues should boost margins and the company will benefit from a strong January due to the timing of Chinese New Year. MPEL trades at a 30-40% discount to the peer group and at under 7x 2012 EV/EBITDA is near an all-time low.
