Today we wrote on Las Vegas Sands (NYSE: LVS) surging growth due
to its operations in Singapore, which is set to become the 2nd
largest gaming market globally and where LVS is part of an
effective duopoly. We take a look at recently launched DuPont (
) and focus on the safety and performance materials segment which
accounts for around 40% of its stock value. In metals and mining
space, Alcoa's (
) management sees the company "aluminizing" the world, and we look
at key trends for U.S. Steel (NYSE:X). Finally we include an
earnings preview for the Salesforce.com (
), which is set to announce results later this week.
LVS Worth $49 as Singapore Gamblers Outspend Vegas in
In April 2010, Las Vegas Sands (NYSE: LVS) opened the Marina Bay
Sands facility in Singapore at an approximate cost of $5.5 billion.
The integrated resort has 2,600 rooms, 161,000 square feet of
gaming space, and 1.3 million square feet of convention
and meeting space. LVS is a developer, owner and operator of
destination casino resorts and operates in the U.S., Macau, and
Singapore and competes with Wynn Resorts (NASDAQ:WYNN), MGM
Resorts International (NYSE:MGM), SJM (HKG:0880), Galaxy (HKG:0027)
and Harrah's among others.
40% of DuPont's Stock Driven by Performance and Safety
) is a diversified global chemical company, which supplies
agricultural products (such as seeds and pesticides),
high-performance materials, automotive coatings, electronic
materials and key industrial chemicals to industries and consumers
globally. DuPont competes with other major chemical &
agricultural companies such as Dow Chemicals (
), 3M (NYSE:MMM), Monsanto (NYSE:MON), Syngenta and BASF.
Our current price estimate for DuPont stands at
. The firm derived a bulk of its value from the performance and
safety materials division constituting 40% of the our price
estimate, which we discuss below.
Alcoa Predicts Substantial Aluminum Demand
) is upbeat about the future of the aluminum industry. At the
company's recent shareholder meeting, Alcoa Chairman and CEO Klaus
Kleinfeld detailed his views of an "aluminizing" world. He predicts
that the global consumption and supply of aluminum could double
from its 2010 figures by the year 2020. This growth is expected to
be fueled by an increasing demand for "more efficient
infrastructure and transportation solutions". Alcoa is the world
leader in the production and management of primary aluminum,
fabricated aluminum and alumina, and competes with other
international metals and mining giants like Rusal, Rio Tinto
(NYSE:RIO), BHP Billiton (
) and Chalco (ACH).
Key Trends Impacting U.S. Steel
U.S. Steel (NYSE:X) continues to see tough times, with profits
evading the tenth largest steel producer in the world again this
quarter. The company reported losses of $86 million for the first
quarter of 2011, although sales figures have improved by almost 13%
over the value in the last quarter of 2010. U.S. Steel competes
with international steel giants like ArcelorMittal (NYSE:MT),
BaoSteel, Posco (NYSE:PKX), Nippon Steel and ThyssenKrupp.
Salesforce.com Earnings Preview: What We're
) is expected to announce its fiscal year Q1 2012 earnings on
May 19th. We believe the main focus of the earnings will be how the
company's newer cloud-computing products are faring, and we will
keep an eye on the company's operating margins as expenses have
been steadily outpacing revenue growth in the past couple of years.
However, Salesforce.com's top-line growth is still impressive and
beyond that of competitors SAP (NYSE:SAP), Oracle
(NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and IBM
of our articles on Trefis.