Las Vegas Sands Corp. (LVS)

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.

This is a little extended. A lot of stocks in that area have already had a lift recently and have got valuation improvements. If you own, he would be inclined to take a little money off the table.

Feels this has a very strong outlook. Huge position in Macau. Very strong growth in gaming in Asia and they have the dominant position. Also have a strong position in Las Vegas. Trend in this business is very good. High margins. Has been increasing talk in the gaming industry of gaming companies spinning off their land holdings into REITs.

It has lagged its peers. Not a favourable pattern.

Been in and out of this one quite a few times in the past but haven’t owned it for the last 12 months or so. Missed on earnings last quarter. A pure China play and he would like to own when it looks like China is really on a roll. 85% of its revenues come from Asia. Long-term, he has no doubt that revenues and growth will continue. Probably looking at high double digit long-term growth.

Coming into resistance at around $52. If it can get through the $51 level, the next place we would see would be $60. $38 is a good support. Moving averages are trying to right themselves. He would probably wait for it to come back to $38 or get above $50.

This is a high beta stock. This is all about Asia and more particularly China. 81% of revenues today come from Asia. You could use this as a trading stock as it has that volatility. From a long-term growth rate point of view, this is probably one of the strongest growth companies out there. Expected growth rate of 20%.

Gaming industry, especially those tied to the Asian market such as this one, have not performed well in the last while. At best, sideways. Growth in China is slowing. You could look at this as a trading stock. Long-term there is certainly secular growth. High beta stock. Wouldn't be a buyer at this point.