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I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I'd be unable to keep up on my favorite sectors and what's really moving the market. Even worse, I'd be lost when the time came to choose which stock I'm buying or shorting next.

Today is "Watchlist Wednesday," so I'm discussing three companies that have crossed my radar in the past week -- and at what point I may consider taking action on these calls with my own money. Keep in mind, these aren't concrete buy or sell recommendations, nor do I guarantee I'll take action on the companies being discussed weekly. What I can promise is that you can follow my real-life transactions through my profile, and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.

Las Vegas Sands (NYSE: LVS  )
Believe it or not, the big talk of the casino sector isn't how Macau revenue is the saving grace of the industry but how we are inching ever closer to the legalization of online gambling. As reported by the Fool's Travis Hoium earlier in the week, both Bally Technologies and International Game Technology (NYSE: IGT  ) were granted the first online gaming licenses in the U.S. That doesn't guarantee that online gaming will be approved, or even allow companies to provide online gambling access as of yet, but it's nonetheless a step toward legalization.

Ironically, as Travis pointed out, it's Las Vegas Sands' Sheldon Adelson who stands steadfast against online gaming's approval. Online gaming would put Las Vegas Sands considerably behind the curve. However, if approval remains a long way off, Las Vegas Sands' large investments in Macau could pay off more quickly than its peers. Macau is growing considerably faster than Las Vegas, and Las Vegas Sands recently opened its fourth casino in the territory. This is a stock that appears set for a large move -- the question is in which direction?

Brocade Communications (Nasdaq: BRCD  )
Just as quickly as buyout chatter pumped up Brocade's stock, a few months on and still without a deal, Brocade's share price is beginning to sink once again.

If you recall, one of the biggest deterrents I saw to a deal was Brocade's increasing valuation due to speculation of an imminent deal. At the time, Brocade's stock price had nearly doubled from its lows and was approaching $6. Blackstone Group (NYSE: BX  ) was one of the names considered to be interested in purchasing Brocade, and I wouldn't count it out from future bidding.

What really matters now is whether Brocade can keep and extend its supply partnerships with IBM, Dell, and Hewlett-Packard. Notably, weakness from Dell and HP hasn't translated into fantastic results for Brocade, but all things considered, Brocade looks like it could be a cheap pick-up at just eight times forward earnings. Keep an eye on Brocade as I suspect it will find a suitor before the year is out.

Taseko Mines (NYSE: TGB  )
Let the nail-biting begin for Taseko Mines shareholders. Copper recently moved to multimonth lows, which has investors on edge as to what's really behind the move lower.

In Taseko's most recent quarter, the miner of copper and molybdenum reported that a delay in copper shipments as well as an unrealized loss on derivatives were the biggest drags on an otherwise decent quarter. As for me, I see the biggest worry for Taseko being China. China is the world's largest consumer of copper and its huge investments in infrastructure also require large amounts of molybdenum, a steel-strengthening alloy. Even with 7.5% GDP growth (which would be considered robust in most industrialized nations), China's demand for these materials could be waning which, in turn, could put downside pressure on copper and moly prices.

On the other side of the coin, at just 5.3 times forward earnings, much of the risk of a China slowdown has been built into the stock and the recent move lower could be a brutal overreaction. I personally own Thompson Creek Metals, a copper, gold, and molybdenum resources company, for many of the same reasons and feel Taseko is also at a very attractive valuation.

Foolish roundup
Is my bullishness or bearishness misplaced? Share your thoughts in the comments section below, and consider following my cue by using these links to add these companies to your free personalized watchlist and keep up on the latest news with each company:

Don't let your search for great stocks end here. Consider getting your copy of our special report "The Motley Fool's Top Stock for 2012." This report details a company that our chief investment officer has described as the "Costco of Latin America," and it's yours for the low, low price of free -- so don't miss out!

Fool contributor Sean Williams owns shares of Thompson Creek Metals, but has no material interest in any other companies mentioned in this article. He's a total nerd when it comes to making lists. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of IBM. Motley Fool newsletter services have recommended creating a synthetic long position in IBM. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that believes transparency comes first.

Read/Post Comments (2) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 28, 2012, at 1:05 AM, cp757 wrote:

    Sean, you are right Travis said "If the market grows as big as expected, a level that H2 Gambling Capital expects could reach $13.4 billion in five years. Adelson has been a leader into new markets, and I think he'll be forced to get into this one, even if he is late to the party" and this is nothing new for Travis. He has a hard time understanding Las Vegas Sands. That 13.4 billion is 5 years. is after the 2 or 3 years it takes to get the laws changed so we are talking 2020 before we see that 13.4 billion so you think Adelson will be late to the party. Oki Doki. Lets just take a look at Macau for 2013 with LVS getting 30% of 40 billion they would get 12 billion so if Macau never did more than 40 billion LVS would make 84 billion dollars in those 7 Years. I understand that every gaming CEO that is up to his eyeballs in debt is telling all the shareholders that they will make billions on Internet gambling but they won't. Those figures include all the players including Facebook, World of Warcraft and any other Internet company that can get in. Remember according to Warren Buffett, the wider a business’ moat, the more likely it is to stand the test of time. The moat on Internet gambling will be nonexistent. Adelson looks at the risk and the reward and with the dangers in online gambling he sees more value with a bigger moat.

  • Report this Comment On June 29, 2012, at 6:36 PM, techpatriot wrote:

    TC and TGB are two completely different scenarios:

    TGB is trying to get North America's largest Gold and Copper mine permitted in Canada. It faces stiff opposition from the local native indians who have teamed up with politically driven environmental groups (all of 3000 tribal members) who are opposing this project on the unlikely grounds that it may harm a lake full of stunted rainbow trout that they like to catch. The more likely scenario is that they want a bigger piece of this multi-billion dollar pie and don't like the non-politically correct way Taseko has dealt with them in the past. You do get the impression that they want to "punish" the company, and they do have the defacto support of the other 1000+ indian tribes all of whom want to be recognized their own separate nations within Canada.

    (And you thought the U.S. had issues!!!)

    Taseko is to be forgiven somewhat, as the land is owned by the Crown, and Taseko holds the mineral rights, which are not in dispute. Canada has a very hard time dealing with these native indian tribes because of a guilt complex, (all 1000+ of them) so this is a much more convoluted issue than it appears at first glance.

    However, things may be looking up for Taseko after getting rejected on their first try, they have a new proposal submitted and there are new Representatives in the Canadian Parliament that are (finally) friendly to development interests, and the lower Canadian courts have just ruled against another land grab by the local tribe, essentially upholding both Taseko's and the Crown's rights to determine the use of the land the mine is on.

    If TGB gets the approvals for the mine, it will be a game changer for both Taseko and British Columbia, and you are possibly looking at a 10+ bagger here.

    TC on the other hand just has to complete the Gold and Copper mine they are working on and start shipping, and they will be earning far more per share than their current share price. They have been pummeled in the market, somewhat unjustly, for normal delays and for less than sound managerial decisions, but barring a global Armageddon economic scenario this company is grossly undervalued, and may continue to be until just before it "proves itself" IE; it is ready to start shipping copper and gold in addition to the moly it currently mine. As of right now they are on "sale" for a third to a quarter of their book value, depending on the day...

    As always, do your own due diligence and research.

    Disclosure: I currently own both TGB and TC and may look to add more of both.

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