Upcoming Traders Expo

November 10, 2008 1:35 am admin Market comments

I will be traveling to Las Vegas for the November Traders Expo. This will be my first expo. It may also be my first day of non trading as I arrive late Thursday night and Plan on going to the show Friday.

As fate would have it Vegas offers me an opportunity to see two stocks that I feel offer real value at this time. LVS and RICK

LVS is best known in North America for the Venetian Hotel and Casino and in Asia for Properties in Macau under the same name as well as the Sands. Soon LVS will also have a property in Singapore that is being highly touted as an over sized ATM machine. My feelings are much more limited in respect to Singapore as from what I have gathered there will be a host of rules in regards to the locals visiting. With cheap airfares from Singapore to Macau it will not be surprising to me at all if Macau takes the lions share of Singapore dollars until the rules are changed. To be sure LVS has fallen from grace. Lavishing under the bright light of Macau, LVS witnessed a stock price north of $122 only to see a price of less than $5 in the last few days. LVS reported a loss that was not as good as expected but considering what earnings reporting that has been coming out of Wall St. latetly I don’t feel it was that bad. One point to note is that LVS stated net revenue rose over 65% and was about 1.11 billion. I like LVS under $10 per share and I like it a lot. With that being said I did not like it above $100 per share and indeed I have shorted it when it was over $100.

My reasons are simple. LVS has a wide exposure to the gaming market including the most active area in the world being Asia. LVS is very upscale and offers an upscale environment and that allows it to weather the economic storm in ways that others can not. As I have seen in my email box they can offer a luxury experience at a very modest price. That should allow LVS to stay more fully occupied. LVS has by its very nature more options available to it. The stock price does not reflect an ability to sell equity on the open market but as a whole the company should be able to maintain the financing it needs from operations as well as other financing sources.

Fear of bankruptcy, This current fear has punished the stock price dearly and again in my opinion the market has overshot the mark and the price is undervalued. This fear is unlikely to go away soon but to have LVS double from its current price it doesn’t need to go away completely as we witnessed in today’s trading. Today a report came out that the Singapore project was to get additional financing that was possibly coming from Singapore itself. This caused a spike in price in a matter of minutes.

Look to see LVS move to double digits and stay higher on a closing basis before the end of the year.

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