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lundi 30 juillet 2012

The Play Of The Day LVS (Las Vegas Sands)

Oh boy, what a drop in the recent weeks: from 55$ to 36$: close to 40%.

Did the fundamentals changed that much? Yes and no. The earnings per share did actually dropped and P/E is now over 21 times earning.

Year over year gross revenues were 10% higher but this is the net profit that drop enough to get the stock slammed.

Could it be that expectations were a bit too high? I think so.

Could it turn around? YES

So even if it is not the one stock for a trading play, it is a good time to start accumulating. I do not know if it will skyrocket from this point. It could even go a bit lower on the next dip but this is a stock definitely worth a lot more than it's actual price.

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.

Get THE PLAY OF THE DAY on Twitter : @investman2

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