Keith shorted LVS in the Hedgeye Virtual Portfolio at $60.43. According to his model, the TRADE range is between $58.22 and $60.69. TREND support is at $52.54 .
In anticipation of the Sands Cotai Central (SCC) opening tomorrow and better than expected Macau market growth, LVS has ripped higher by 33% since the start of the year. While SCC will help LVS regain share, its existing properties face potentially greater cannibalization than currently anticipated by the Street. When MPEL and Galaxy both opened their new properties, shares zoomed higher ahead of their openings, only to sell off post opening. LVS could be a similar case.
Current Street expectations of 20%+ growth for the rest of the year may be a little rosy as a lot of the Q1 growth was driven by easy hold comparisons. Comparisons are much more difficult for the rest of the year and while Mass has looked good, VIP volume growth has been essentially non-existent since June of last year.
