M&A Buzz Sends Rival Gaming Stocks Higher

Las Vegas Sands Corp. (NYSE:LVS) and Wynn Resorts, Limited (NASDAQ:WYNN) are proving the skeptics wrong -- at least for a day

Jul 7, 2015 at 3:31 PM
facebook X logo linkedin

Amid industry-related M&A news, gaming stocks Las Vegas Sands Corp. (NYSE:LVS) and Wynn Resorts, Limited (NASDAQ:WYNN) are charging higher. At last check, LVS has popped 4.2% to $56.80, while WYNN has added an even more impressive 7.4% to trade at $111.40. From a sentiment perspective, though, these sharp upside moves weren't necessarily expected.

It's true: Call buyers have been active on LVS in recent weeks. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.69 ranks in the 82nd annual percentile. However, given the equity's long-term struggles (down 25.4% year-over-year) and high levels of short interest, it's possible long calls have been initiated by short sellers to protect against a sharp upside move. In fact, short interest spiked 23.4% during the latest reporting period to roughly 29 million shares -- which would take one week to buy back, at typical volumes.

Among covering analysts, just under half rate Las Vegas Sands Corp. (NYSE:LVS) a tepid "hold." Plus, the stock's consensus 12-month price target of $56.50 is approximately flush with current trading levels.

Things are even more bearish when it comes to WYNN. Two-thirds of the analysts tracking the shares consider them a "hold." Also, short interest jumped 18% during the most recent reporting period, and now accounts for about one-tenth of the equity's total float.

This isn't surprising, given Wynn Resorts, Limited's (NASDAQ:WYNN) embarrassing track record on the charts. Even after accounting for today's bullish action, the shares have surrendered more than one-quarter of their value in 2015.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI