Is It Still A Safe Bet To Buy Stock In Las Vegas Sands?

a great sign, especially in a difficult market where not as many people are willing to gamble.

2007

2008

2009

2010

2011

Revenue ($)in billions

2.95

4.39

4.56

6.85

9.41

Diluted EPS ($)

.33

-.48

-.82

.51

1.56

 

It’s pretty amazing that one quarter’s revenue in 2012 is almost as high as the annual revenue for 2007.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

2.41

2.54

2.76

2.58

2.71

Diluted EPS ($)

.44

.39

.61

.29

.42

 

T = Trends Do Not Support the Industry

With high unemployment and a lot of people choosing to save money as of late, Las Vegas isn’t the first place on the average vacation list. Some casinos are hurting. This is also the case in Atlantic City, and to a greater degree. Las Vegas Sands has strategically chosen profitable locations throughout the world without growing too fast. Macau has been a big boon for Las Vegas Sands, and that should remain to be the case. In an industry that is expected to suffer in the coming years, Las Vegas Sands should do fine.

Conclusion

Las Vegas Sands has excellent growth, quality management, and it pays a dividend. There is only one major negative. This stock got hammered in 2008. If the Fiscal Cliff situation doesn’t unfold well, then the same thing can happen this time around. If a bad Fiscal Cliff scenario can be avoided, then Las Vegas Sands is an OUTPERFORM.  

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