Las Vegas Sands Corp. (LVS), Domino’s Pizza, Inc. (DPZ): Don’t Be Scared to Shop Around

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Last week’s economic turbulence shook markets across the globe. As fears of rising interest rates and tighter monetary policy set in, the Dow tumbled over 300 points, marking the worst daily performance this year.

But why the huge sell off? Hadn’t Mr. Market known this was coming? After all, the market is supposed to be efficient, and its long been stated by the Federal Reserve that its loose monetary policy would end sometime in 2014.  So now I’m getting my shopping list ready and looking to add companies that shouldn’t be affected by this madness.


Las Vegas Sands Corp. (NYSE:LVS)
Las Vegas Sands Corp. (NYSE:LVS), a casino oligopolist, sits atop my list. Las Vegas Sands Corp. (NYSE:LVS) is an integrated resort developer and operator with properties across the world including Macau. While some have argued the entire rally is a result of multiple expansion, you could argue the great chunk of this rally is a result of strong underlying performance.

Las Vegas Sands Corp. (NYSE:LVS) has dominated the Macau market with its portfolio of world class resorts. Macau, an administrative region of China, has performed exceptionally well amidst a broad Chinese slowdown. Generally, both GDP and gaming revenue growth in Macau outpace broader Chinese GDP growth. As a result, the company has been able to grow its earnings by an astounding 20% on a quarterly basis.

This great growth is spurred by 8.9% gaming growth, in combination with greater market share gains. Trading at 18 times forward earnings, this company looks inexpensive compared to its growth potential.  Demand is actually set to increase as a greater number of people gain convenient access to the region.

Since pulling back from $60 per share, the dividend yield has jumped to almost 3%. Currently shareholders will receive ordinary dividends of $1.40, but I expect this number to rise. In recent shareholder presentations, Sheldon Adelson, the company’s Chief Executive Officer, stated he is committed to returning money to shareholders through sales of non-core assets.

Pizza time

Another company you should be watching is Domino’s Pizza, Inc. (NYSE:DPZ). Shares have already popped, but are now starting to come in.  Are people going to stop eating pizza if Bernanke ends his quantitative easing program?

The company is exploding both oversees and domestically. I’m sure we all remember the “we suck” commercials, well its true, the company really did turn itself around. Since 2008, it has grown internationally by 43% and still has room to run. South Korea, Turkey, Brazil, and Spain have been performing exceptionally well and management thinks it can add over 2,700 locations, to its top ten markets, in the years ahead.

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