Gambling is a time proven business.� That is if you own the casino.� With a guaranteed edge against the gambler, casinos can be a no loss investment if they are managed correctly and continue to attract the patrons who want to try their luck.� It’s not only billionaires who can profit from the casino edge, regular investors can buy shares in a variety of casino resort driven properties to get a piece of the action.� One of the most popular casino or gaming stocks is Las Vegas Sands (NYSE:LVS).
Las Vegas Sands Corp., together with its subsidiaries, develops multi-use integrated resorts worldwide. It owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and The Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Macao, The Venetian Macao Resort Hotel, and the Four Seasons Hotel Macao, Cotai Strip in Macau, the People’s Republic of China. The company is also developing Marina Bay Sands, an integrated resort in Singapore; and Sands Casino Resort Bethlehem, an integrated resort in Bethlehem, Pennsylvania. Las Vegas Sands was founded in 1988 and is headquartered in Las Vegas, Nevada.
As you can expect, a casino’s success is tied directly with the health of the economy.� If people are unemployed and struggling they are less likely to gamble, or at the least the gamble less due to having less capital.� Las Vegas Sands was thrown into financial trouble two years ago due to the slowing economy, particularly in Las Vegas.� �However, things have radically improved over the last year with the company’s revenues tripling over the past year.� The improved U.S. economy, their casino resorts in Macau, as well as their new Singapore operation turned things around.
Las Vegas Sands just posted blow out positive revenue figures but the total fell short of analyst’s estimates sending shares down by almost 7% yesterday.�� Is this a buying opportunity for savvy investors?� Let’s take a look at the technical picture.� The 50 -day moving average acted as support in the after hour steep decline.� This is a bullish signal.� In addition, price is well above the 200- day moving average indicating a strong uptrend is in place.� Perhaps the most bullish signal of all is the stock is being bought in the pre open Friday indicating that dip buyers have gone to work.� It’s also important to note that sell offs after earnings are typical for Las Vegas Sands.�� This looks like a bet worth taking right now.
No comments:
Post a Comment