LVS (Las Vegas Sands) owns and operates casinos in the United States, Macau, and Singapore. When I first researched this stock back in 2010 it was only in the $20s, now it's trading at $52.20. Quite a great investment if you got in back in 2010. But is it still a good stock to get into now? Let's check out the chart below.
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| LVS chart from www.freestockcharts.com |
With the lower trend line we can expect this stock to come down another $4 to the $48 level. According to the Parabolic SAR, this stock is still heading down to a lower price. Parabolic SARs are the white dots above and below the stock price. When the dots are above the price, the stock is in a down trend, when dots are below the stock is in a strong uptrend. The Stochastics, MACD and RSI all indicate this stock is oversold and is ready for more buyers to come in. Stochastics and RSI both show lines moving horizontal and almost turning to the upside, which is a good sign this stock might be ready to head higher. MACD is just about horizontal and may turn soon. When trend lines and indicators all match up, that is your best bet for a great entry point to go long. The trend line is not really set in stone just yet, but if it touches that lower area and turns to the upside along with the indicators, then we have a confirmed trend line set. Also, the 200-day moving average is near the bottom trend line. A $4 drop in price from the current price is a long way and could take a few more days, but if we have confirmation of a turn around with the indicators, then it would be a great time to get in this stock. The near term price of this stock could reach the mid $60s.
LVS has exceeded estimated earnings for the passed 2 years, not including Q1 in 2011, where it missed estimates. Additionally it boosted its revenue to $2.76 billion from prior years earnings, that's a 31% increase from last year.
What do you think, will it head higher or will 2012 be a bad year for the casino business?
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