Crown Resorts near 52-week lows- Is it time to buy?

Crown Resorts Ltd (ASX:CWN) has a number of promising opportunities before it in 2015, but will they be enough to drive the stock up?

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Crown Resorts Ltd (ASX: CWN), the international casino and integrated resort operator, had a topsy turvy year in 2014, but the company is already shrugging off old news and getting deep into business for 2015.

The stock, which had such a great run-up in 2013, has pretty much given up almost all the 2013 gains and stands at $12.69. Trading at 14 times earnings, it's pretty close to the bottom of its past PE range.

What's the company's outlook for 2015? Can it pull out of its funk in the new year? Below are some catalysts for growth.

BetFair and BetEasy

Taking 100% ownership of BefFair just in August, Crown Resorts sealed a deal with online wagering upstart BetEasy to form a new joint venture this month, combining the two wagering businesses. BetEasy just secured the rights to be the AFL's official wagering partner for the next five years. Crown will own 67% of the business and BetEasy will control the remaining one-third. If successful, it may be a steady domestic income stream while Crown's two namesake casinos in Perth and Melbourne are seeing lacklustre revenue growth.

New Asian gaming venues and the changing Macau business climate

Crown's development pipeline is packed with a variety of integrated resorts planned for the next 5 – 6 years. Melco Crown Entertainment Ltd (NASDAQ: MPEL), Crowns' joint venture company that operates the City of Dreams resort in Macau, is pushing forward with its Asian expansion. In early 2015 it has the opening of the new "City of Dreams" venue in Manila. This will be a test on how much revenue and earnings Melco Crown can generate outside of the Asian gambling mecca. Its "Studio City" venue will open in Macau as well in 2015.

Melco Crown was the biggest earnings generator for Crown in FY 2014, helping James Packer's company raise earnings 30%.  That was before the Chinese government move to clamp down on money laundering and corruption occurring in Macau. With visiting VIP gamblers down, Melco Crown will need to change to increase its mass market gambling for higher volume revenue.

As to how 2015 will play out, we'll all just have to keep watch of trading updates and company announcements. It's possible Crown's stock may slip further down on a continuing poor outlook.

The Australian market may not improve as consumer discretionary spending still weak, so the big indicators will be coming from overseas.

To be on the safe side, I wouldn't start any new positions until a better view on earnings comes from the half year results preferring to see the stock improve before making any big moves.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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