Las Vegas Sands Rolls Along at 53x Forward Estimates

It has been a heck of a breakout for Las Vegas Sands (LVS) out of the consolidation phase under $33 noted on Sep 22 [Nice Base Building in Las Vegas Sands]. The stock has put on nearly 20% in 2.5 weeks… and now trades at FORWARD 53x earnings for 2010. Even on 2011 estimates (15 months away) it’s a forward 35. Don’t even ask what the trailing PE is. But like the Greenspan “Y2K” era, we’re back to not caring about valuations because the central bank is flooding the world with paper currency… although Bernanke is putting Greenspan to shame. While LVS has perhaps the most appealing portfolio of geographic distribution (duopoly in Singapore, exposure in Macau) among the casino names, this is the type you ask where does it end? If 53x forward earnings, why not 106x? 212x? 424x during QE5? I obviously have no idea but I guess we simply hold on for the ride since we are in the “can’t lose market”.

Disclosure: Long Las Vegas Sands in fund; no personal position

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

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