MelcoPBL Provides City of Dreams Update, Refutes Cost Overruns
MelcoPBL has announced the completion of the land lease agreement with Macau SAR for the two parcels upon which City of Dreams is being built. The cost of the land is US$229M.
MelcoPBL also provided a 'program and budget update' which states that "construction of City of Dreams on Cotai remains on time and on budget... in line with our June 15, 2007 announcement." This clarification of City of Dreams' budget comes on the heels of reports that cost over-runs, similar to those at Crown Macau, would inflate the total price of the project. It's pretty obvious that this "update", released just a week or so after quarterly earnings were announced, is an attempt to stem the slide of MelcoPBL's stock. MPEL has dipped from $17 to $13/share in the past week, from a high of $18.99 in October.
Looking at MPEL's chart, I noticed that their stock surged the week following my Crown first impression posts - 'Wow' and 'Holy Crap!' - both published on September 18, 2007 (outlined in orange). I'd change my name to Cramer, but throwing chairs and bandying about like a lunatic is an activity I prefer to leave for the immature.
You too can enjoy the City of Dreams update released to the press today.