Sands China Looks Like A Good Bet

The Consumer Cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Footwear, Gambling, Leisure, Lodging, Packaging, Personal Services, Restaurants, Rubber, Plastics, & Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a large-cap Macao based resorts and casinos firm.

It's name is Sands China Ltd.

It's trading ticker symbol is SCHYF

Sands China Ltd operates resorts and casinos in Macau. The company’s prime resort properties include The Venetian Macao, Sands Cotai Central, The Plaza Macao, and The Sands Macao. It also operates theatres entertainment arena and high-speed ferries.

As of December 31, 2017, the company had 12,605 suites and hotel rooms, 19 Paiza Mansions, 1,660 table games, 5,293 slot machines, and approximately 140 restaurants and food outlets, as well as other integrated resort amenities. 

It also offers ferry transportation and leasing services, and pontoon leasing; security services; human resources administration services; financing; mall management services; travel and tourism agency services; and procurement, marketing, and administrative services, including information technology, accounting, hotel reservation, and marketing. 

The company was incorporated in 2009 and is headquartered in Taipa, Macau. Sands China Ltd. is a subsidiary of Venetian Venture Development Intermediate II.

I use three key data points gauge the value of any dividend equity or fund like Sands China Ltd.: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, those first three primary keys, best tell whether a company has made, is making, and will make money. 

SCHYF Price

Sands China's price per share was $5.17 at yesterday's market close. A year ago its price was $4.40 for a gain of $0.77 per share.  

Assuming Sands China's price will trade in the range of $4 to $7 next year, its price could grow another $0.77 from $5.17 to $6.94 by July 2019. 

SCHYF Dividends

Sands China's most recent variable semi-annual dividend was $0.13 paid in February. 

Past semi-annual payouts peg the annual amount at $0.26 for a yield of 4.9% at yesterday's $5.17 share price. 

Gains For SCHYF?

Adding the $0.26 annual dividend to the $0.77 potential year over year price gain makes a $1.03 projected gross annual per share gain, which will be reduced by any cost to trade these shares.  

$1,000.00 invested today at the $5.17 price buys 193 shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.5 per share

Subtracting that $0.5 brokerage cost from the estimated $1.03 gross gain leaves a net gain of $0.98 X 193 shares 

= $189.14

or a 19% net gain on a $997.81 investment.

Therefore, Sands China Ltd (whose ticker symbol is SCHYF), now shows a possible 19% net gain including a 4.9% dividend yield. 

No analysts cover this stock. The current stock price has retreated 16% from a high of $6.26 reached January 22. The projected year over year price target at $6.94 may be as good as you'll get.

Y Charts has not yet rated SCHYF for an overall "Y" rating. Y Charts shows "insufficient data" for a Value score. However, YCharts has rated China Sands "strong" for a Fundamental reading.  A Historic Valuation score for SCHYF also has "insufficient data" for a Y Charts rating. 

You could look at all those numbers Sands China Ltd has made money, is making money, and could net a 19% gain next year including a 4.9% annual dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Results could turn out to be far higher or lower. More study is required for you to determine if Sands China Ltd is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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