Keith added MPEL to our list of Real Time Positions at $19.40. The TRADE risk range is $19.21-$21.31 with TREND support at $16.85.
An MPEL selloff on today's beat on earnings wasn't surprising. Investors were already already expecting a beat and the London Times story on a junket crackdown didn't help. However, a 6% sell-off looks overdone and we expect the sell side to be defending the stock and downplaying the Times article tomorrow. We actually think the article has some teeth but we won't find out until after Chinese New Year (2/10/13) if that is the case. In the meantime, we expect the stock to recover fairly quickly.
