Keith bought LVS in the Hedgeye Virtual Portfolio at $45.79. According to his model, the TRADE range is at $45.65-49.73 and the TREND resistance is at $51.33.
As we wrote about in "A MACAU TRADE" (05/25/12), we like LVS for a long trade. Macau market share has been unquestionably disappointing since Sands Cotai Central opened in April. However, we believe share will increase from May's 17.5% to a more appropriate 19-20% range over time.
Overall, Macau revenue growth for May will likely come in at the lowest level since summer 2009. While we've been hitting on the slowing growth theme for almost a year, May was additionally hampered by low hold, a shorter Golden Week, and an unfavorable calendar. Based on our math and assumption of normal hold, June should post higher YoY growth. Sequentially better market growth and growing LVS market share should provide positive catalysts for a stock that has plunged 25% since its April high.
