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  • Take A Gamble On Las Vegas Sands
    By Jason Raznick

    Las Vegas Sands (LVS) reported earnings this morning that knocked the cover off the ball. After this report, investors might want to double down on Las Vegas Sands.

    The casino operator and developer said it lost $4.7 million, or a penny a share. This compares to a 34 cent loss from last year. Ex-items, Las Vegas Sands earned 17 cents a share on revenues of $1.59 billion. This was far better than the 9 cents Wall Street expected on the same revenue number.

    Breaking down the earnings report, one can see strong growth from abroad. Total net revenues for Sands China Ltd. skyrocketed 40.7% to $1.04 billion in the second quarter of 2010, when compared to the $738.9 million this division earned in the second quarter of 2009.

    The Macao property, the Venetian Macao, also had another strong quarter. This property had an adjusted property EBITDA of $192.8 million for the second quarter of 2010 and a record 33.2% adjusted property EBITDA margin. The EBITDA margin ballooned, rising 840 basis points over the second quarter a year ago.

    Las Vegas Sands seems to have averted death and is on the road to recovery. There are plenty of catalysts to come, such as the debate of online gambling here in the U.S., and strong continued growth from abroad. I would look to add shares of Las Vegas Sands on a pullback.

    No Position



    Disclosure: No Position
    Tags: LVS, earnings, long
    Jul 28 9:08 AM | Link | Comment!
  • Amazon Still Too Expensive
    By Scott Rubin

    On July 22nd, Amazon (AMZN) reported earnings, missing Wall Street estimates by a wide margin. The company reported EPS of $0.45 versus consensus estimates of $0.54. The stock was crushed to the tune of more than 10% after reporting the disappointing quarter.

    In the recent market rally, however, AMZN has recovered rather impressively. On Friday July 23rd, the stock opened in the $106 range. During today's trading session, AMZN has made it all the way back to around $117. Prior to the earnings miss, the stock was trading at around $120.

    The valuation in AMZN is just too high right now, particularly in light of continuing concern over the U.S. consumer. The shares trade at a trailing P/E of 48.33, a forward P/E of 32.35, and a PEG ratio of 1.65.

    If another downtrend manifests itself this week, and the S&P is not able to remain above its 200 day moving average, look to get short AMZN right away. The premium in this name is just too high right now.



    Disclosure: No Position
    Tags: AMZN
    Jul 28 8:15 AM | Link | Comment!
  • Time For The U.K. ETF?
    By Jason Raznick

    Economic reports can light a fire under country-specific ETFs or they can illicit little response. News that the U.K.'s GDP grew 1.1% in the second quarter may not sound earth-shattering, but consider that this is the best growth report in four years from the U.K. and it may time to take a look at the iShares MSCI United Kingdom Index Fund (EWU).

    Economists forecast a 0.6 percent gain, according to the median of 32 predictions in a Bloomberg news survey. That beat may be enough to, at least in the near-term, give investors more confidence about the global economic recovery and provide EWU with a boost.

    The ETF recently broke above a long-term downtrend line and has its sights set on clearing the 200-day moving average just above $15.50.

    BP (BP) has been a drag on EWU as it is the ETF's largest holding, in turn dragging down another top EWU constituent, Royal Dutch Shell (RDS-A), but BHP Billiton (NYSE: BHP) has had some good things to say last week. Factor in the notion that the worst is probably behind shares of BP, and EWU becomes a bit more inviting.

    If nothing else, the GDP report put EWU in play in Friday's trading session and the ETF could also be worth a look as a medium-term trade.



    Disclosure: No Position
    Tags: BP, BHP, RDS.A, ETFs
    Jul 25 5:42 PM | Link | Comment!
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