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$MLCO – Melco Resorts and Entertainment – Casinos + Bottom of Channel = Tendies

Hello there autists of all shades and creeds, today I’d like to talk to you about **$MLCO**. Lets start out by getting this out of the way – this is a CHINA stonk. If you don’t want to play with the CCP, stop reading. Now, if you’d like to make tendies, please continue.

Ok, so the basic shiny points of **$MLCO** or Melco Resorts and Entertainment is that it’s one of only 6 companies which is allowed to run casinos in Macao, the only region in China which allows gambling. Basically think of Macao as the Las Vegas of Asia. On top of that, they own City of Dreams in Manilla and City of Dreams Cyprus, dipping their toes in the Mediterranean. This company was hit hard during the pandemic, because of obvious reasons, but that’s looking to change as vaccines continue to be rolled out, and the CCP lightening up on travel restrictions.

So now you’re like great, how do I make money off this stock? Well, this puppy looks like it’s in the bottom of an upwards channel, and has just bounced off the low point. Using STD it shows support at 15.75 and 15.12 of the 6mo and 1Y chart respectively. Yesterday, it managed to hold and today bounce off those levels. If you look at the yearly chart, you can see it has touched the 14-15 region multiple times since the March 2020 crash, and each time has bounced back. It’s trading lower than prepandemic levels by a significant margin, and only recently touched that region of 20-23 before plummeting back to these levels after Delta variant fears. Analysts price targets are a high of $30 to a low of $14, so at this price, downside is limited.

Lastly, a few days ago a huge whale bought a large number of $18 Jan 2022 calls. This is what first put this company on my radar. Do what you want with this info apes, this isn’t financial advice. Look at the chart, read up on **$MLCO** and make decisions for yourselves. This isn’t a short squeeze, it isn’t some meme stock, it’s just very undervalued compared to it’s peers and has a beautiful technical setup. This post is just to shine a light on the ticker, so you can decide for yourselves. I personally think this could be a 2x bagger with just shares, and easily more with options within a 4-6 month timeframe.

Positions: 500 shares @ 15.95 and 20x $18 Jan 2022 calls

What do you think?

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5 Comments

  1. Why did share price go up to 32$ in 2018 and then crash?

    I’m going to pass. Not looking for a 6 month hold and I don’t think it’s at bottom yet.

    Pre-pandemic this stock was 24$. Unless we know why it fell from 32$ then we can’t expect it to return there.

    I see a potential 50% gain. It made most of that recently and gave it up.

    I just don’t see a home run.

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