MACAU MACAU

One of my long time holdings is MGM, a gaming stock with great properties in Vegas and Atlantic City and a 50/50 interest in a Macau casino that is a work in process. Whenever one hears about Macau, its always all about LVS and WYNN, and they have been great stocks. I am wondering if MGM is now going to play a little catch up as their place in Macau is scheduled to open in early 2007. My guess is that the Macau casino will do great as the folks in that region appear to love to gamble even more than we do.

MGM does not trade at a wild valuation and is expected to make $2 this year and $2.5 next year. WYNN trades at 90+ and profits are projected at 40 cents this year and $2.3 in 07, while LVS, also trading over 90, has anticipated profits of $1.8 in 2007. MGM looks like the "undiscovered" Macau play.