I believe it was a good speculative buy at those levels ($2) you are already in the money with it trading for about $4.45 as of today. I bought long in LVS too back in Nov. for trading purposes and will hold at least half of my shares until they reach the $8 mark.
market cap is only 3 billion at the current stock price per share. That's barely the cost of the materials to build the venetian in vegas, NOT EVEN INCLUDING THE real estate it's worth, not including palazzo, not including macau, singapore, pennsylvania, and not even including the business itself. I don't understand why members here on ET never bring up bargains and opprutunities like this.
Because the bondholders might own all of that. Dont take this rally as confirmation you are right on this stock, they got plenty of debt coming due for years and years. They have been cashflow negative ex-financing for years, this means they depend on the capital markets to stay liquid. They cant raise equity anymore so they are the mercy of creditor for years to come
Current outstanding debt is factored into the price; however, the opening of the two new casinos and a few on the Cotai strip is going to increase revenues and decrease outstanding debt. Don't forget that they can eventually buy back their debt at a discount. This is the Altria of another kind. Remember, since the begining of recorded history, we always had gambling, drugs, and prostitution. Gambling is going to be here even after you lose your shirt in the next bear market.
As usual, your call is an almost perfect contrary indicator: <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2376406>
I agree! LVS, MGM, WYNN (well maybe not so much) But the guys who are still focused on the casino business are here to stay. The leader will have the best management, human resources, and handling of cash flow. There is no business like the gaming business. If they would operate under good money management practices and start paying a respectable dividend those babies would go through the roof. BTW with as many people out of work these day's I don't see to many bans on gaming in the future.
Loudmouth Macke is saying casinos building in Macau are going to be run roughshod over by the Chinese government. Do you think they might have some clue about that before they decided to build? I think he drove Najarian away too with his need to be alpha male.
I've always been partial to liquor, casinos, and cigarettes. Not as a customer so much as an investor. Any investment consistent with basic truth -- all human endeavor is driven by vanity, greed, or instinct* -- is always good. *Paraphrasing Malcolm Muggeridge of course.
LVS getting pummeled today. I'm at Tahoe and Gaming is dead in Nevada. It's going to be rough going forward for gaming stocks. Careful