Las Vegas Sands Shares Fall Fast Wednesday on Macau Worries

Submitted by Aaron Goldstein on

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Aaron Goldstein

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Las Vegas Sands entered “oversold” territory Wednesday, according to Forbes.

In trading on Wednesday, shares of Las Vegas Sands Corp (NYSE: LVS)  entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $67.82 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 35.1. A bullish investor could look at LVS’s 28.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Sands is hurting due to its exposure in the Macau gaming market, which over the years has proven especially lucrative.

There are signs of change on the horizon, however.

Wells Fargo analyst Cameron McKnight said Macau gaming revenue for July fell 3.6% to $3.5 billion following a crackdown on practices by local lenders who allegedly laundered money via credit cards.

The poor shares performance of Sands Las Vegas follows a great showing by MGM on Tuesday.

MGM shares rose as much as 2.5% on news that the gambling resort raked in more cash in Vegas thanks to higher occupancy rates, loftier room prices and a stronger percentage of gambling wins.

Deutsche Bank analyst Carlo Santarelli told Investors.com “he expects Q3 revenue to fall 0.9% vs. the same quarter a year ago and full year revenue to grow 6.5%, well below the region's usual growth rates, and down from his earlier outlook for 3% Q3 growth and 8.6% for the full year”.

- Aaron Goldstein, Gambling911.com

 

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