Tuesday, September 28, 2010

Las Vegas Sands (LVS) Upgraded

I take little stock in analyst actions on stocks, other than the fact it moves individual equities as people react to such words.  The estimate upgrades however, are significant.  A remarkable turnaround for a company who some feared was at the door of bankruptcy in 2008.  [Sep 3, 2009: Las Vegas Sands - Too Big to Fail?]   Again, despite the name (which the company is considering changing to get rid of the "Las Vegas") this is now a global company, and one focused more on Asia than the U.S.  [Jul 29, 2010: Las Vegas Sands Wins Bet on Asia in Q2]

Since upping Las Vegas Sands (LVS) to the largest position in the fund last Thursday, the stock has continued it's breakout from a 11 day range [Sep 22, 2010: Nice Base Building in Las Vegas Sands] and in a benign environment this is exactly the type of chart you hope to buy as a breakout candidate. Obviously the question remains how much longer things remain benign.

"Textbook breakout"

Via AP:

  • Las Vegas Sands Corp.'s Singapore properties are performing well and a revaluation of the Chinese yuan might help the company, an analyst said Tuesday in removing his sell rating on the stock.  KeyBanc Capital Markets analyst Darnel J. Bentz said in a note to investors that Singapore visitor arrivals have grown sequentially every month since it opened two new Singapore resorts.  "Arrivals are up 23 percent year-to-date through July," he wrote. "We now expect each resort to appeal to a wide variety of tourists and attract more visitors than we previously forecast."
  • In addition, the revaluation of the Chinese yuan should help the company, he said. Sands owns three casino-hotels in the Chinese gambling enclave of Macau in addition to its Venetian and Palazzo casino-resorts on the Las Vegas Strip.  China announced in June that it planned to introduce more flexibility in the value of its currency, but in the last three months the yuan has risen less than 2 percent against the dollar.
  • Bentz raised his rating on shares of Las Vegas Sands, the world's second-largest gambling company behind Harrah's Entertainment Inc., to "Hold" from "Underperform." He lifted his 2010 profit estimate to 84 cents per share from 52 cents per share and his 2011 estimate to $1.25 from 85 cents per share.
[May 7, 2010: Las Vegas Sands Narrows Loss]
[Feb 24, 2010:  First Phase of Singapore Casino for Las Vegas Sands to Launch in April]

Long Las Vegas Sands in fund; no personal position

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