What’s Up with LVS? It’s Down

05/10/2010 9:58 am EST


Elizabeth Harrow

Director of Digital Content, Schaeffer's Investment Research, Inc.

I do have a legitimate reason to discuss Las Vegas Sands Corp. (LVS) today, because the company stepped into the earnings spotlight last week. However, my strict Catholic upbringing compels me to confess that I also have an ulterior motive for discussing the gambling guru. So, let's start with the above-board analysis first, shall we?

LVS is off the high of the year significantly, even though the casino concern exceeded first-quarter earnings expectations. The firm raked in an ex-items profit of seven cents per share, compared to analysts' consensus forecast for a profit of just two cents per share. Net revenue of $1.33 billion also surpassed the Street's estimates.

Analysts seem pleased by the report, with UBS raising its rating on the stock from "neutral" to "buy" and S&P Equity hiking its price target from $15 to $21. Unfortunately, amid a persistently negative bias in the broader equities market, LVS has been unable to capitalize on its well-received report. In fact, it looks as though traders are adding new puts at the June 20 strike today, with speculators looking for the shares to fall into the teens during the short term.

However, bulls shouldn't give up hope just yet. LVS is still holding above support at its ten-month moving average. Plus, short interest accounts for a hefty 15.5% of LVS' float, which means there's no shortage of sideline cash that could flow into the stock once this bout of broad-market volatility passes.

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But, like I was saying, I kind of have an ulterior motive for writing about LVS. Next Monday, I'm flying out to Las Vegas to attend The Money Show with some of my colleagues here at Schaeffer's. Don't feel bad if you can't make it out to Caesar's Palace to hang out with us-I'll be live-blogging all of the action on the Trading Floor Blog.

(You can also tune in free for LIVE Webcast events here on MoneyShow.com. Click here for access.)

So, if you're interested in, say, the finer points of Bernie Schaeffer's keynote speech, Todd Salamone's advice on trading in uncertain markets, or Ryan Detrick's warning about the five options mistakes you need to avoid, stay tuned, because I plan on covering all those presentations and more. As soon as I'm done cleaning up at the blackjack table, of course.

By Elizabeth Harrow of Schaeffer's Trading Floor Blog

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