Las Vegas Sands Corp. (LVS)

A good company in the casino business. Has a positive disposition towards the area in the long-term, but right now you do not want to touch the stock. Macau continues to be a big black hole.

(A Top Pick Dec 5/14. Down 12.53%.) Got stopped. He was trying to play Macau because they had such a heavy exposure in the Chinese gaming market. The corruption story was expanding and the Chinese market started to roll over.

The crackdown on corruption China has kept some money away from their properties.

This has 85% Asian revenues. You really have to be comfortable that Asia is about to turn around, which he is not so certain about. Trading below the 250 and 100 day moving averages.

Technicals show that this is starting to form a bit of a base, but it is falling. Both the 200 and 60 day moving averages are falling. The stock price is below both of those numbers. He would stay away for the time being.

Feels consumer traffic is lower than before and remains low for the time being. He is still a little bit cautious on owning this. He would like to own it at some point just because of the real estate they own and that they are in one of the highest growth areas in the world. Trading at about 18X forward earnings, with a growth rate that should pick up. We’ll have to see about the economy in China. This is a high beta stock if you are trying to buy volatility.

Like all casino stocks, this is pretty volatile, but they can be great trading vehicles. The trick is to watch for the bottom formations. Whenever you are looking at a stock like this, you wait for a pullback, and then a base, and a break out. This has not started to do that yet. He would not buy this until it starts to move up.

Another sort of back door play into Asia. About 80% of their revenue comes out of Singapore and Macau. They don’t have a monopoly, but have a very strategic position, where people can’t get into the market against them for at least a few years. Likes Asia because that is where the growth is. Yield of 3.38%.

Have 3 casinos stocks Las Vegas Sands (LVS-N), Wynn Resorts (WYNN-Q) and Melco Crown (MPEL-Q). Should I hold them over the summer? Has always liked casino stocks. Finds the business model and the cash they are making fascinating. A basket of these is good. Be aware that this is awfully volatile. He thinks they go up from here. Another interesting name is Galaxy Entertainment (GXYEF-OTC).

Up 50% in the last year, in large part due to their new casinos in Macau, a massive growth area. Selling at a hefty valuation. They are lobbying against online gaming in the US. Not a cheap stock.

Likes that it is in a part of the world like Singapore and other parts of Asia to take advantage of the consumption story. It has not shown up on his radar. It is a bit overbought right now. You might take half as profits. Nothing wrong with it.

It’s not about Las Vegas though. It’s about China. Their cash flow alone can fund a 10% dividend increase every year. Only 1.4 times levered. Lots of growth ahead of it and lots of markets ahead for expansion like Japan.

The risk at this point would be the regulatory environment in Macau, etc. This one gives you a great long-term growth prospect probably 13%-15% growth. Trading at about 18X earnings. Pretty decent valuation. Bouncing off the 200 day moving average and if you don’t own, it would be worth a swing at this point.

Long-term this is going to have a great growth rate, probably 12%-15%. Trading at around 19-20 times earnings. He is not quite ready to jump into any of the casinos right now. He wants a little more clarity on China.

He sold it recently. There is an enormous level of resistance. Odds are that it will pause out here.