Leaving LVS Behind

I have been riding Las Vegas Sands to higher returns since I first started this blog. In fact, I've ridden it to a 55% gain over the last two months, but I think that it is time to say adieu to my beloved LVS.

Why? It will become increasingly harder for the stock to continue to outperform at current levels when earning for Q3 are announced. Two weeks ago, analysts had raised their price target to $120. It took two days for the stock to break through that amount. Today, another analyst raised his price target to $163. That would be about a double since I suggested the stock in July.

I just don't see it. When the announce Q3 earnings, it will only take a portion of the new Macau facility which opened at the end of last month. I don't care how good the numbers are, it won't be enough for those investors that are looking for the moon and stars from the stock.

With all this good news surrounding the stock, I think it is a big red flag that says, "Get out". And that is exactly what I will do. Can't argue with a 55% gain in two months time.