Australia's largest stock trading and investment forum Australia's #1 stock forum

CWN

Click for more information

0.25%

$12.09 crown resorts limited

Melco Crown +21% Since Crown Resorts Arrests, page-2

First 2 Last

Share
Profile

Follow
druiner

1,160 Posts.

145

20/11/16

16:19

Post #: 20747447
Share

Originally posted by warhorse ↑

So while everyone has been fixated on the arrests of Crown Resorts employees in China, the Melco Crown share price has quietly rallied +21%. Given Crown Resorts owns 27.5% of Melco Crown, this equates to an increase in value of their shareholding of approx A$600m, or just over 7% of the current Crown Resorts market capitalization.

The company have previously announced that "contribution to Crown Group profits attributable to the international VIP gaming program play business from mainland China visitors is substantially less than 12%".

Therefore if you assume the extreme case where the China VIP business goes to zero (a 12% hit to earnings/market capitalization), then a large proportion of this lost value has already been filled by the A$600m gain from the company's Melco Crown shareholding.

Even if every Crown Resorts employee is charged and convicted in the next few days, the selloff in the share price is clearly overdone. Feels like we are headed into the $12's rather quickly, to get back to fair value.

Expand

Yes I,m confident the gap will be closed before xmass

cheers to holders

CWN Price at posting: $11.18 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

US election outcomes: Key economic and market takeaways

PNN

Power gets set for 1000-metre maiden drilling program in Brazil

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

There are more pages in this discussion • 2 more messages in this thread...

First 2 Last

Add CWN (ASX) to my watchlist