LVS - Las Vegas Sands - Daily - Lower End of Valuation Range

I like LVS here now on the long side after many short-side trades over the past year.

I think the pictures of rising revenues, rising margins, declining shares outstanding and a stock that is in the bottom end of its valuation range appears quite attractive. With a dividend yield in excess of 4% as well, it will attract yield hungry investors which will keep support under the stock.

Earnings are already out of the way and the shares are pulling back to their key hidden support level (not shown) from the last quarter.

You can also see that LVS appears to be in a strong downtrend technically from the highs near $90 early last year, but that is what can make an attractive entry: It looks so bad on the charts that there is no one left to sell, and perhaps people are heavily short the stock too. That can only help if any positive news is ever reported.

Upside potential is to the 4.0 times sales level or up 30% from here (3.09 times sales now). Downside risk is under the lows in case something unknown comes into the equation that we haven't anticipated.

Cheers.

Tim 7:32PM Wednesday, February 25, 2015 56.30 last LVS