Wednesday, November 17, 2010

Bookkeeping: Restarting Las Vegas Sands (LVS) - Small

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Quite a few names we owned in September and October went parabolic, and either they were lightened up or sold completely.  One of those names was Las Vegas Sands (LVS) which was amongst the biggest winners.  I did close out the position on Nov 4th a smidge below $50 after piling in at $33, about 6 weeks earlier.   [Sep 22, 2010: Nice Base Building in Las Vegas Sands]   The stock ended up going to $55, but much like silver it had a traumatic one day reversal that day and closed on the lows and since then it has struggled.  (by the way I told a reader via email it looked like a good short candidate as the stock had gone parabolic, but like Silver Wheaton - I did not pull the trigger myself because parabolic moves scare me since they can go much longer than you anticipate)



Today the stock is back under $45, about 10% below where I last exited... and in the process of filling a gap.  The reason I sold out completely was there was no near term price I was interested in adding to the position since the stock was so out of control to the upside.  But now it begins to get appealing.  Only to put it back on my sheets (and hence start paying much more attention to it) I am opening a 0.2% position.  This is mostly for tracking purposes as I have hordes of watch lists and if its not in my portfolio I don't follow names that closely.... I will put a much larger position on at the bottom of that gap near $41.  Which just so happens to be the 50 day moving average.

If the S&P 500 goes to stretch targets of 1090 and 1110, I doubt Las Vegas Sands will hold at $41 so I'll have to have stop losses in place and then see what price it is, when the S&P 500 fills its own gaps.  But one can take a stab with a nice entry point if we can get that gap fill near $41.

Long Las Vegas Sands in fund; no personal position

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