Las Vegas Sands May 'Default on Bonds;' 'Cease to Exist As Going Concern'

Yea you are right everything is fine and dandy and peachy in las vegas thats why lvs is down to $7 from $150, wynn 180-$45, mgm 90-$13. not to mention las vegas real estate is down 30-40% with shit load of foreclosures

 

You completely ignored leverage - these companies have so much development debt supported by junk bonds that any revenue decline can cause massive defaults.

Who will lend them money?

You also confuse traffic to the strip with revenues. They're giving away rooms and food and other 'comps' to get anyone they can into the casinos.

LVS is a perfect example.

This ain't the 80s with Steve Wynn floating his junk bonds that paid off.

Completely different time. LVS couldn't have picked a worse time to go on a debt orgy.

 

Over 25,000 foreclosures and growing monthly! :eek:

Regardless of the news, I will buy a second property in Vegas 6 months before City Center opens. Bought my current property in the Lakes area back in 1997 and I love it out there.....will keep this property for many many years!

 

Actually I was in Vegas 2 weeks ago and the casino floors were not like they used to be 6 months ago. I had even mentioned that it felt like a ghost town at the Wynn to one of my friends.

The high roller room WAS a ghost town. Over the weekend, i must have passed by it at least 20 times....... Completely empty.

Something was def wrong.

 

Yes, Vegas is flat right now.....noticed it even back in June, July, and August.

 

If Adelson pull off his Asian financing, this is a real good time to buy some 2011 options spreads for pennies.

Las Vegas is still great. Just returned from seeing a magic show with free tickets for locals, and had a decent dinner for $15. Friday night and the strip is packed. But still no high-rollers. Great prices on rooms though.

 

That is one nasty looking hoochie. Look at that sagging gut.

 

Yeah, great for margins right? Nope.

I go to the ICSC Convention every year, and the past year was a mere shadow of its former self. It was WAY more dead, and the attendees were extremely pessimistic, and not exactly in a spending mood.

Ever see 'Vegas Vacation?' Remember the scene where Clark goes to the $2.99 buffet with cousin Eddie, and Eddie asks for some more "Yellow and Blue?"

Yeah.

 

Yea, I was also at the Wynn & Venetian a few weeks ago and it was a ghost town.

 

I was in vegas over the summer and many of the people we talked to said that there is not a lot of action like it used to be. Cab drivers said that they havn't been seeing many people and it is harder making money. This was back in July.