Las Vegas Sands Inc.LVS

Morningstar Rating

Stock Research and Analysis

by Michelle Chang, CFA

Las Vegas Sands is aggressively betting on the world's two hottest gaming markets. Recent credit market turmoil and a weakening global economy have caused the company to dramatically change its plans, however.

Sands' signature property is the Venetian Read more

Bulls Say

Macau has granted only six gaming concessions, and one belongs to Las Vegas Sands. Macau is China's only gaming destination, and the market benefits from its high population density. It's within a three-hour flight of more than 1 billion people and a five-hour flight of more than 3 billion people.

The Las Vegas convention and trade show business has helped keep Sands' hotels at higher occupancy rates during the normally slow midweek periods.

Sands has a highly coveted gaming license in Singapore. We believe the company's success in Macau positions it nicely to win more licenses in Asia should other countries follow Singapore's lead and legalize gaming.

Sands is improving its liquidity by selling a portion of its Macau operations through an initial public offering. Read more

Bears Say

The economic downturn is placing considerable pressure on Sands' operations. The high fixed costs of operating a resort casino can magnify the effects of a sales downturn, and the firm also holds a considerable amount of debt.

The Las Vegas Convention and Visitors Authority projects room inventory to increase nearly 9% in 2009. This added supply is not helpful for hotel operators already slashing room rates.

Competition in Macau has heated up, and visits are unpredictable as the Chinese government may loosen or tighten restrictions on travel to the region at any given moment. Heavy-hitting U.S. casino operators such as Wynn Resorts WYNN and MGM Mirage MGM are also in the market. Read more

Strategy

Sands primarily looks to build integrated resorts in Las Vegas and growing international destinations that offer convention space as well as a variety of amenities for all travelers, including gaming, Read more

Management

Sheldon Adelson is one of the pioneers of today's Las Vegas Strip. He founded Las Vegas Sands in 1988 and remains its chairman and CEO. Adelson proved to be a visionary with the convention-driven business model he employed with the Venetian; the once-ridiculed Read more

Profile

Las Vegas Sands owns and operates the Venetian Resort Hotel Casino, the Palazzo Resort Hotel Casino, and the Sands Expo and Convention Center in Las Vegas, as well as the Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Dollar General Stock May Lose a Few Cents
Watch more