March 5, 2025 | Daily JAM, Jubak Picks, LVS |
The reason to own shares of Las VEGAS sANDS (LVS0 is the strength of its position in the gaming market in Macao, and developments that look to add faster revenue growth in that market in the relative near future. Morningstar calculates that the stock is currently trading at about 20% below fair value.
The reason to sell Las Vegas Sands is that the trade war between China and the United States is likely to get worse before it gets better. And Las Vegas Sands’ operations in Macao are totally exposed to changes in policy and regulations from the Chinese government.
May 4, 2023 | Daily JAM, Jubak Picks, LVS, Videos |
Today’s Quick Pick is Las Vegas Sands Corp. (NYSE: LVS). Is Macau gaming the best way to play China? I would say yes. News out of China is that it’s clearly reaccelerating and will easily hit 5% economic growth in the current quarter. The economy is reopening and growth is up and Macau, as a gaming center, is benefitting in a pure Covid reopening story. Total gaming revenue in Macau was up 247% year over year in March and 450% in April. Normally I’d look at MGM International to play Macau, but their Las Vegas presence outweighs their China presence, and at this moment, I’m looking for something with less presence in Las Vegas. Although the name may suggest otherwise, Las Vegas Sands has a much bigger presence in China and is in the process of selling their Las Vegas assets in order to invest more in Singapore and Macau. This is a good place to play China gaming as the country accelerates and I’ll be adding it to my JubakPicks Portfolio with a target price of $70 a share.
