Jamie Dlugosch
Jamie Dlugosch is the founder and editor of the top-rated The Rational Investor. He has over 20 years of experience in financial markets including investment banking, equity analysis and research and money management.

Jamie Dlugosch
Jamie Dlugosch is the founder and editor of the top-rated The Rational Investor. He has over 20 years of experience in financial markets including investment banking, equity analysis and research and money management.
The Las Vegas Sands (LVS) of TimeMay 6, 2008 By Jamie Dlugosch, Editor, InvestorPlace |
If you don't believe me, take a look at his track record!
Of course the past is no guarantee of the future, but it is a good place to start. With China still growing at a double-digit clip, there are plenty of great buying opportunities.
For example, Hsu recommended his readers buy shares of Las Vegas Sands (LVS) in March of 2006 when shares traded for around $50 per share. He subsequently sold when shares hit $80 per share in June of last year.
Such a trade resulted in a tidy profit of 60%. As it turned out, Robert left quite a bit of money on the table. LVS exploded to over $140 per share shortly after he sold, but he should not be criticized as shares fell back to Earth and below his sale price of $80.
The round trip may have been nauseating for those who continued to hold LVS, but provided a glimmer of what the future may hold for this exciting company.
Hsu revisited LVS in a recent journal entry for subscribers to his China Strategy letter. In the missive, he told the tale of visiting Macau giving his readers a firsthand look at the action in China's sin city.
Needless to say, the competition is fierce explaining why Hsu was conservative on LVS. Such a state, combined with the slowdown in the U.S., and there was good reason to worry about gaming stocks.
That was then, and this is now. Hsu was very impressed with the U.S. casinos now operating in Macau, but he is not quite ready to pull the trigger.
I disagree with that assessment. While the explosive growth in LVS shares may have been a bit overdone, so too has been the selling. Buying LVS in the low $70s makes sense to me.
The selling has been mostly due to concerns over a U.S. slowdown. Many are now stating that the recession will be shallow at worst with an expectation for a recovery in the second half of the year.
If we wait on LVS, we may miss the boat. Shares are so volatile that any good news could result in a 20% gain or more in a very short period.
I think the downside is limited here and given the growth prospects, I would take a hard look at LVS.
Warren Buffett can go buy his index fund. I'll take my chances in identifying strong growth stories that can still be had for reasonable prices. LVS is just one of those stories.
Don't gamble when you invest in China! Join China Strategy risk-free today! Robert Hsu will show you exactly how to profit from China's extraordinary expansion! Be among the first to know which companies to buy and more importantly, which ones to avoid, by joining China Strategy right now. Don't miss out!