Las Vegas Sands The resort company is opening the Sands Cotai Central property in Macau on April 11. "January 2012 benefited from the earlier Chinese New Years, and conversely, February will be impacted," KeyBanc Capital Markets analysts wrote in a report on March 8. "However, our analysis finds that the impact may not be as great as some assume, and with many special events (the Rugby World Cup, an MMA event, a majorfight and Super Bowl weekend) in February, we are guessing that Las Vegas Strip win will be up modestly this year. We have come to understand that the separation of Chinese New Year and Super Bowl week actually helps to even out VIP play and helps the high end properties. We have compared January and February Chinese New Years for the last seven years and see a clear distinction between the two. In 2006 and 2009 when Chinese New Year fell in January, that month accounted for about 54% of combined Strip win. In 2007, 2008, 2010 and 2011, that January share was about 49%. Based on a 54% share this year and Strip total win of $623 million, February 2012 could be approximately $530 million, or 3% ahead of 2011. We think that is doable." Shares of Las Vegas Sands hit a 52-week high Monday of $59. The stock's 52-week low of $36.08 was set on Aug. 8. Las Vegas Sands' forward P/E is 19.01; the average for gambling companies is 16.18. For comparison, Wynn Resorts ( WYNN) has a forward P/E of 18.92. Twenty-three of the 28 analysts who cover Las Vegas Sands rated it buy. Three analysts gave the stock a hold rating and two rated it sell. TheStreet Ratings gives Las Vegas Sands a C+ grade and a hold rating. The stock has risen 39.78% year to date.
El Paso Kinder Morgan has a tentative agreement to sell about 7,200 miles of its pipelines to help it get approval for its acquisition of El Paso, according to Bloomberg. "The Kinder Morgan. Inc. (KMI) - El Paso Corp. (EP) merger is expected to close in May," Credit Suisse analysts wrote in a March 16 report. "2) Asset divestitures at Kinder Morgan Pipeline Partners (KMP) have been identified, and 3) Financial targets reiterated by Kinder Morgan." Shares of El Paso hit a 52-week high Monday of $29.45. The stock's 52-week low of $16.30 was set on Oct. 4. El Paso's forward P/E is 24.09; the average for pipeline companies is 25.18. For comparison, Plains All American Pipeline ( PAA) has a forward P/E of 16.94. Six of the 12 analysts who cover El Paso rated it hold. Five analysts gave the stock a buy rating and one rated it sell. TheStreet Ratings gives El Paso a B- grade with a buy rating and a $37.80 price target. The stock has risen 10.95% year to date.