Tuesday, October 2, 2007

Melco to build "Trinity" casino

Melco (MPEL 18.92) is now poised to build it's third casino. They've built the Crown Macau which caters to VIP's, and they are building the City of Dreams Casino scheduled to open in 2009.

Here is the artist rendering of their third casino, which is in a prime location by the Macau ferry terminal, scheduled to open in 2010. MPEL would then have the VIP play at the Crown, mass market play at the City of Dreams, and the play of the Macau day trippers here, next to the ferry terminal.

Mr. Packer already showing his plans would make someone surmise that he may already have a deal similar to a sub-concession/licensing in his back pocket. If that's the case, this casino and the rest of the build out of the City of Dreams could be paid for. The buyers of the stock may already have a whiff of this news, while Jim Cramer of CNBC's Mad Money, who's been bashing the stock, may in fact be the "one that knows nothing." How ironic would that be?

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