The long dying of vice stocks: Short Las Vegas Sands (LVS) for 20-30% gains!
Today's Financial News - Posted November 14, 2008
Las Vegas Sands (NYSE: LVS) has been hard hit by recession. Despite talks of financing for their Macau project, there is really no hope for this stock. Short it now for 20-30% gains!
by J. Christoph Amberger
Baltimore — (TFN): Despite the substantial drop in the U.S. equity markets, Las Vegas Sands Corp. (NYSE:LVS) gained over 9% today. The company is currently in talks with a syndicate of banks to raise between $1.5 billion and $2 billion to finance new casino projects in Macau. The company had suspended construction on its expansion into Chinese gaming, laying off most of the 11,000 construction staff.
The stock price has dropped from over $122 last December to just above $6 today.
We think Sands is the new GM: Obtaining credit to finance the Macau project at this point is a self-defeating target: By the time the money comes in, the Chinese gaming market will be just as hard-hit as Vegas. There may be room for another 10% gain in the next weeks. More likely, the company will blow past its 52-week low of $4.32 before November is over.
Since I first wrote about this stock on August 19, 2008 (“The House always wins: Investors lose big with MGM Mirage (MGM), Las Vegas Sands Corp. (LVS), Wynn Resorts (WYNN)”), the price has dropped from $50.93 to below $5.
Short it again, for 20-30% gains by mid-December!
Next Article: Retail Bottom Fishing: Will Auto Nation (NYSE:AH) or Sonic Automotive (NYSE:SAH) survive?
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November 14th, 2008 at 3:04 pm
The capital was raised for Singapore, not Macau