Trade Update - Las Vegas Sands (LVS)
I have been bullish on Las Vegas Sands (LVS) since it started to pullback in the Spring. The stock experienced a large decline, exacerbated by concerns that new visa regulations in China would hurt visits to Macau.
These fears peaked and the stock bottomed in late June. Since then, the stock began a new uptrend, slicing through overhead resistance along the way.
This week, the company reported strong earnings, beating estimates by 3 cents. But it wasn't the type of blowout earnings report that often sends a stock soaring. Nonetheless, the stock has vaulted +13% in the last 2 days, on rising volume.
Since bottoming in June, the stock has now rallied fully +35%, an outsized move. It looks like it is getting a little overbought, and I want to hedge some of the recent gains here. I still like the stock, I just think it could be due for a little pullback. And trading is trading.
As an aside, a friend of mine recently met with MGM management, and they were very bullish on their prospects, and about their stock. They said they continue to be shocked by the valuation discount between MGM and LVS/WYNN. fwiw--
net long LVS