Las Vegas Sands (LVS)

I read everything I can find in all the major publications from my POS broker etrade, and I visit the casinos and see for myself how they are doing. Last weekend, the Venetian was pretty busy. I personally believe that this is a cyclical play and it will recover to at least $10 by the end of this year.

Be careful what you read though. For example, that clown Jim Cramer actively came out on his failing company's website and bashed casino stocks just when they are rallying. I ask myself why would these supposed knowledgeable talking heads bash on low pps casino stocks when it is just starting to rally. Most of these talking heads are paid by the funds to talk in which ever way they want them to so they can either accmulate or dump shares.

Here are a few examples: Just came out today.

http://www.fool.com/investing/general/2009/03/19/long-odds-for-las-vegas.aspx

Motley Fool is a known site that is paid by the funds to manipulate stocks.

http://www.thestreet.com/_yahoo/vid....html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1

Jim Clownmer and his omnipotent knowledge of everything under the sky.

 

A stock doesnt sell from 80 to 2 without a distinct chance of becoming insolvent. I wouldnt be surprised to see this one trading at 25 cents by the end of the year.

 

Just because a casino is packed for one day, it doesn't mean it's a screaming buy.

and besides, we haven't seen any casino companies announce bankruptcy yet....I think we will see a few BK's before u can start practicing your poker face.

 

yes but they dont pay almost 40% of the stock price for one month unless they have a reason.

 

Five of the 8 casino's are bankrupt in Atlantic City N.J

They are giving comp rooms to everyone.

cheers john

 

wow even more reason to stay away from casino stocks....vegas casino industry is one that has definitely over leveraged itself from the past bull economy....the days of "imaginative" equity on people's homes are long gone and will never come back.

casino's are in a lot of trouble because unlike the banks, there are NO BAILOUTS.

stay away or short at will.

 

I have to agree...

The 'public' is always last to know... it doesn't matter how much info. you've read. It's ALL priced in if you can read it.

The options market should tell you what you need to know.

Having said that, if this stupid tarp money goes through (that's the $1 Billion allocated for a high speed rail from LA to Vegas) then you may be on to something... but that should take longer to build that the oxygen the co. has left to survive.

It probably is a $2 lottery ticket.

B

 

I understand that a stock would not go from 80 to 2 unless there is insolvency risks. However, the banks will benefit less by directly liquidating the casinos in Vegas because according to Nevada State Law: Gaming licenses are non-transferable to a non-gaming operator. I doubt JPM can use the lobby in the Palazzo as a bank. Also, you have to consider the properties that they own in Macau and the new property in Singapore.

 

lvs dropped from 145$ around oct 2007 to 2$ today.

this is because they are so swamped in debt and macau..over expanded and leveraged...MGM is offering up its casinos as collateral for loans to stay afloat...

If you got 20k to kill go for it...otherwise these guys look doa.