This is nothing new. Investment firms frequently issue downgrades after a company's stock has plummeted. It's just #$%$-covering by GS (and others), and it's usually a good indicator that a stock is bottoming out.
Barring any significantly bad economic news from China I think LVS will begin to see strong support at $49-$50.
I mean, come on...they are only now, at the lows, "saying it faces tough challenges in its two largest gaming markets, the U.S. and Macau."???
They either are playing games or they are clueless....but either way people should not take them seriously at face value.
Macau gaming show 17th-19 Nov 2015. Never heard of this before. Was in Singapore this past week. casino's there look good. Full. Also saw banners like this all over. What sort of a show is this?
yeah, that chart analysis on Fast Money was painful to watch... especially when they overlaid the graph of the Chinese stock market (which has been going up, up, up).
in the short-term things are bad for the casino companies that derive a significant % of revenues from Macau. however, it is logical to expect that the wealth created from the Chinese stock market will soon be a positive catalyst for Macau.
highflier2go is absolutely correct. all of that info was discussed and confirmed on the most recent LVS conference call.
Analysts are always late issuing downgrades and reducing price targets. It may be frustrating, but it's nothing new.
Per the most recent CC on 04/22/15 Sheldon said that the dividend is a higher priority than the share buy back program. I got the impression from the CC Q&A that LVS cannot afford to cover the dividend and continue to buy back its shares without increasing leverage. Sheldon was quite clear that adding leverage to the balance sheet was not desired.
LVS stock price will likely experience increasing volatility due to reduced price targets by analysts on 05/15/15, analyst downgrades of WYNN and MPEL on 05/15/15, and the expectation of more bad news from China. The good news is that LVS has the strongest balance sheet, the least amount of leverage in the group, and it will continue to defend the dividend. LVS is also best positioned to ride out the volatility in China and is best positioned to benefit from any up-tun in Macau.
Why now? They want to kicks it down to hardrock bottom so they buy it themselves. Then say: "Now is the bottom"; "The doubling stock market in China and new-high stock market in HongKong generate many many more rich people with known Legal Money..."
LVS buyback is critical here.
If Sheldon freezes buyback like last quarter, it can see $30..
Surprise buyback will swallow them shorter alive, squeeze Avalanche ...
In recent month/s, HK sector has stabilized ever since mainlanders started buying casino sector.
U.S. side, it has been bottoming, until Wynn ER scroooed it all up again. Selling spell started again.
Mpel went under $19. Wynn is being shorted daily.
LVS has been quite resilient until today, Friday.
LVS, 55.39, -8.7%
Mpel, 21.96, -15.5%
MGM, 22.4, -15.3%
Suspending buyback is not good. Green light for shorts to drag it down. Increasing dividend would make absolutely no sense. Price will not recover till GGR rebounds. The number of new properties creates additional headwinds. May take awhile before price reaches 60 again.
Macau government says the same.
Too much cash reserves. Annual cash give-out as usual. None of projects on time.
On top, they aggravate by chasing away mainlander, just for the heck of feeling "superior".
For Sheldon, He lost his confidence and sounds quite humble, with business.
But with politics, he is still very "tough".
They have the cash flow to do it - and they have suspended their buyback program in case a development opportunity comes up. Even if these lower revenue numbers hold for the foreseeable future - they have already baselined a minimum 10% div increase every year for the next 3 years.