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Las Vegas Sands Is Not an Oasis Yet


Any stumble could drive it back to the low double-digits.

The weekend is upon us!

Asian stocks rebounded overnight. The Hang Seng and the Nikkei were up 2.4% and 1.45%, respectively. European stocks were mixed early this morning. And here in the US, we're currently trading lower.

Here's what I'm focused on this fine Friday morning:

Las Vegas Sands (LVS):
Excluding items, the casino company put up $0.03 in its third quarter. That was ahead of the penny-per-share loss the Street was expecting.

My feel:

1. Obviously it's better than expected and I can't be too upset with that. But at the same time, it's $0.03, and the company is only expected to put up $0.30 in 2010. Not anything to get too excited about.

2. The chatter out there is that the environment is perhaps getting a little better in Sin City. So that might explain why the shares got such a nice lift in yesterday's action. But a little more travel to Vegas and a slight domestic economic rebound doesn't equal an oasis in the desert just yet.

3. It's great that the shares have rolled back so nicely from earlier in the year, much like every other stock in the galaxy. But I definitely think the shares are ahead of themselves, and that a stumble of any real size at the company or in the industry could drive it back to the low double digits. I'm just not feeling the love.

For my last take on Las Vegas Sands, click here.

BMC Software (BMC):
The Texas-based company put up and adjusted $0.66 in its second quarter. Not too bad, given that the Street was at just $0.58.

My thoughts:

1. This company has been pretty regularly grinding past estimates and deserves a clap for that. Also, while it's not the cheapest on the Street, it still looks like a good value: It trades at 14.8 times this year's estimate.

2. What's not to like about this comment in the release: "The Company expects non-GAAP earnings per share in the range of $2.55 to $2.65 per share, which at the midpoint would represent a 15% increase year-over-year and a 7% increase compared to the Company's initial fiscal 2010 guidance."

3. One other line I liked: "During the second quarter, BMC increased its stock repurchase activities from the prior quarter, spending $75 million to repurchase 2.1 million shares." I like the fact that the company was still willing to dabble in the stock. I think it's a terrific sign.

4. I'm not necessarily in love, but I definitely like it.

For my last take on BMC Software, click here.
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No positions in stocks mentioned.

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