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Thursday September 02, 2010
Singapore casino boosts Las Vegas Sands (LVS)
by Mike Cintolo, editor Cabot Market Letter  We remain as enthusiastic as ever about the fundamental story for Las Vegas Sands (LVS).Investors know the general story, but we feel many are underestimating the potential growth. For instance, a few months ago, Sands’ Singapore resort (dubbed the Marina Bay Sands) wasn’t even open for business, and most analysts were thinking it would have little effect on business for a year or two. But now Singapore—which has just one other competing casino resort—is estimated to be a $4 billion gaming market this year! 
Incredibly, in just 65 days of operation, Marina Bay generated $94.5 million of cash flow, nearly one-third of what Sands earned in a full quarter in Macau! Not that Macau is any slacker, as cash flow among Sands’ casinos in that area leaped 74% in the second quarter. But more impressive to us is the potential—Macau, for example, produces as much gaming revenue as Las Vegas does … but with one-tenth the number of casinos! And in China in general, there are an average of 77 new millionaires (in U.S. dollars) created every day … something that will only increase the potential gaming market in the quarters to come. Last but not least, we like Sands because it’s easily understandable and, if an institution wants to invest money in this area, there are only a couple of quality stocks to choose from. Compare that to some exciting technology company that has a great product today but has dozens of competitors who will take advantage of its slightest misstep. We think you can buy a little LVS here if you don’t own any. BUY. Learn more about this financial newsletter at Mike Cintolo's Cabot Market Letter. |
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