Today’s buy idea is a big but growing gaming stock from Cabot Market Letter, and is followed by profit-taking recommendations from Richard Moroney and Roy Ward on two successful picks from last year.
Las Vegas Sands (LVS)
from Cabot Market Letter
In the Model Portfolio tonight, we’re [adding] Las Vegas Sands (LVS 71), an institutional-quality name that still provides solid upside, in our view. ... We had great success with the stock back in 2010, when its then-new Singapore casino resort (the Marina Bay Sands) caused the stock to more than double. But it topped in the fall of 2010 — and did nothing for three years! Now the stock is back in gear, and while it’s not the go-go name it was in 2010, we think it’s becoming a must-own for big investors — thanks to Singapore and, more important, its Macau properties, sales, earnings and cash flow are all booming. And there’s plenty of expansion potential both in Macau itself, as well as in other countries (possibly Japan ahead of the 2020 Olympics).
The stock broke out in September, rose nicely through the middle of October and has now pulled back for a couple of weeks to its 25-day moving average. It can be bought here; a drop through 63 or 64 would be abnormal. BUY.
Michael Cintolo, Cabot Market Letter, www.cabot.net, 978-745-5532, November 6, 2013