Japanese Gaming Could Mean Billions More for Las Vegas Sands and Melco Crown

Home Depot rallies on an upgrade; the Dow keeps its head up as housing pullback slows.

Apr 22, 2014 at 6:26PM

Wall Street suffers from a cartoonishly short attention span. A fortnight ago, money managers, talking heads, and individual investors alike were frenetically prepping for an economic Armageddon. "Momentum stocks are going to zero!" they'd yell. "Remember what 2000 was like? Yeah, well imagine 2000 on steroids!" they'd warn. "Russia wants to take over the world! Is that the sky falling, over there, off in the distance?"

Right on cue, Mr. Market stepped in. He dispatched Corporate America to battle the unqualified bears on Wall Street. "Look," said Corporate America, "check out my earnings." The bears paused; the earnings were better than they expected. Hands boldly placed against his hips, Mr. Market had another weapon in his arsenal. Narrowing his eyes, he gave the ominous command, "Hit them with the jobs data." Spreadsheets and graphs pelted the confused bears, who, upon seeing that employment was improving more quickly than they expected, began slinking back into the sewers, or wherever it is they live when they're wrong.

But Mr. Market wasn't done; he wanted this retreat to hurt the bears.

"Call Yellen." Faithfully, his minion scurried off in search of the Chairwoman of the Federal Reserve. Then, Janet Yellen told the bears on Wall Street that rates were likely to stay low for a very long time. They have not been seen since; the Dow Jones Industrial Average (DJINDICES:^DJI) added 65 points, or 0.4%, to end at 16,514.

Home Depot (NYSE:HD) shareholders should thank Mr. Market the next time they see him. Shares rallied, gaining 2.8% on Tuesday as the home-improvement retailer finished as the top performer in the Dow. Investors, seeing headlines that existing home sales are on a three-month downtrend, might miss the fact that March's pullback wasn't nearly as rough as analysts expected. Home Depot was also upgraded by analysts at BMO Capital Markets today, and major upgrades and downgrades often have huge effects on short-term stock prices. Keep in mind, however, that Wall Street Analysts don't often have your best interests in mind when they make their recommendations. 

Lasvegassandsvenetian Macau

Interior of the Las Vegas Sands Venetian Macau. Source: Company website

Now for some big-winning casino stocks: The consumer services sector was the second-best performer in the market on Tuesday and, within it, the gambling industry really shined. Las Vegas Sands (NYSE:LVS) beamed like one of the famed neon signs on the Las Vegas Strip, roaring 5.7% higher in trade. Shares of Melco Crown Entertainment (NASDAQ:MPEL) also went bonkers, as the world leaders in casino and gaming eagerly await next month's Japan Gaming Conference. The conference, the first of its time, will be held in Tokyo, less than a month from now, between May 14 and May 16. The rich, densely populated nation is considering whether to legalize gambling, and will vote on the question in the coming months. Legalizing gambling would be great for both Las Vegas Sands and Melco Crown Entertainment.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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