Casino operator Las Vegas Sands (NYSE: LVS) The stock is down (-37%) year over year (YTD) for 2021, although the S&P 500 index (NYSEARCA: SPY) continues to hit new highs. Fears of prolonged delays in reopening efforts in Macau, saturated by travel restrictions due to the Covid-19 Delta variant, are depressing casino stocks. Casinos with offices in Macau and in international locations suffer worse than their pure competitors. China’s crackdown on double-listed companies could also add a layer of paranoia to companies that generate most of their sales and profits there. Las Vegas Sands is a leading casino player who, when it reopened with bargain reviews, fell behind in the hideous looking three month sell-off. The downtrend charts are ugly to say the least, but therein lies opportunities. Risk tolerant, patient, and prudent investors can look for bargain prices at opportunistic pullback levels when LVS trades near its pandemic lows.
Q1 FY 2021 earnings release
On July 21, 2021, LVS reported its results for the second quarter of 2021 for the quarter that ended in June 2021. The company reported earnings per share of ($ -0.26), which was below consensus analyst estimates for a loss of (-0.17 $). , a (- $ 0.09) failure. Revenue rose 1,095% year-over-year to $ 1.17 billion, but still fell short of analysts’ expectations ($ -215.2 million). Pandemic travel restrictions and reduced visitor numbers continue to affect results. As of June 30, 2021, unrestricted cash was $ 2.06 billion with access to $ 3.94 billion of revolvers. Total debt excluding finance leases was $ 14.42 billion at the end of the quarter. Robert Goldstein, CEO of Las Vegas Sands, commented, “We continue to love the opportunity to again welcome more guests to our homes as more visitors can eventually travel to Macau and Singapore to help those in need in each of our local communities while they recover from the effects of the COVID-19 pandemic. We remain confident that travel and tourism spending in our markets may recover. Visiting remains robust, but pandemic travel restrictions in both Macau and Singapore continue to limit visits and hinder our current financial performance. “
The story goes on
Take away conference calls
CEO Goldstein set the tone as he delved directly into the area of pain. Our performance in Macau reflected a sequential improvement, but pandemic travel restrictions continued to affect our performance. We remain confident that the recovery is possible in both Macau and Singapore, and we cannot pinpoint the timing of the full recovery, but it is underway and will continue in 2021. “He continued,” Singapore stays in the range of annually $ 500 to $ 600 million, although the second quarter was affected by tightened pandemic restrictions for part of the quarter. We will also be affected by closings of both parts of MBS from today through August 5 as part of COVID-19 related logs. This will of course have a negative impact on Q3 results. In addition, it is not clear when the air traffic in Singapore will return. In contrast to Macau, it is difficult to forecast an additional EBITDA from MBS until the resumption of air traffic. Our substantial investment in Macau continues to take shape. As the market recovers, Four Seasons and the London will be growth opportunities and we will continue to have the greatest presence in this incredible market. ”He concluded with measured optimism:“ We are confident that we will achieve an EBITDA of over 5 billion going forward US dollars will return from Asia. The sale of the Las Vegas assets creates liquidity and a tremendous opportunity to explore major land-based destinations in the United States and Asia, and finally, we are still in the early stages of building our digital footprint. We are currently exploring several options and we seek that these efforts will be essential to our business in the years to come and we will keep you informed in due course. “
Las Vegas Sands stock is becoming a bargain
LVS price trends
The use of the rifle charts in the weekly and daily timeframe enables a precise overview of the price development of the LVS share. The weekly rifle chart was in a 12-week downtrend, making successive lower lows. LVS stocks made a double top of $ 66.72 Fibonacci (fib) level in March which triggered a weekly market structure high (MSH) sell-signal at USD 57.77 in May and has not looked back since. This is pretty ugly considering benchmark indices like the S&P 500 and the Dow Jones Industrial Average have hit new all-time highs in the background. The weekly 5-period moving average resistance continues to decline to $ 41.30. The weekly lower Bollinger Bands (BBs) are at the pandemic lows near $ 33.30. The weekly stochastics were choked, buried and forgotten under the 20 band for two months. The daily rifle chart shows an inverse pup split with a falling 5 period MA at $ 38.13 and lower BBs at $ 35.05. The daily stochastics is in the 10 band with the potential for another inverse mini-puppy or a daily Low market structure (MSL) Buy triggers on breakout above $ 37.80 and $ 41.52. Prudent investors can look out for opportunistic pullback levels at $ 36.80 fib, $ 35.51 sticky 5s, $ 34.35 sticky 5s, $ 33.30 pandemic low, $ 31.49 fib, and $ 29.28 fib. The upward curves range from $ 46.64 fib to $ 64.54 fib.
