While many know that Bill Gates and Warren Buffet are the two wealthiest, Tony Sagami notes that few know the third: Sheldon Adelson.

In his Asia Stock Alert, he explains, "Adelson is the founder and CEO of Las Vegas Sands (NYSE: LVS), our latest featured stock." Here, he looks at the gaming company and its bright prospects in Macau.

"Due to its strategic location in the South China Sea, Macau has a rich history as an Asian trading hub. To this day, it looks more European than Asian. And its popularity with tourists is absolutely exploding — an estimated 27 million visited Macau last year.

"The majority (55%) came from mainland China, but many more visited from Hong Kong (30%) and Taiwan (9%). These tourists are flocking to Macau not because of its history or picturesque seaside location. They’re coming to gamble.

"And boy, did they gamble! On my last visit to Macau, I saw table after table filled with boisterous high rollers routinely making $100,000 bets. These 'whales' account for about 80% of Macau’s gambling revenues.

"Today, Macau has become the Las Vegas of China. It is the only city in the region with fully legalized gambling. And gambling is deeply engrained in the Asian culture. Plus, Macau is within a five-hour flight of three billion people — nearly half the world’s population.

"Macau has overtaken Las Vegas as the gambling capital of the world. Gamblers wagered $10.6 billion in Macau last year, crushing the $8 billion that Las Vegas pulled in. My favorite way to play this trend? Las Vegas Sands (NYSE: LVS) is the best way to participate in Macau’s gambling boom.

"Las Vegas Sands owns and operates the luxurious Venetian casino and convention center as well as the new Palazzo resort on the Las Vegas strip. But you may not be aware that it also owns the Macau Sands and the Macau Venetian.

"Don’t let the name fool you. Las Vegas Sands is very much an Asian-focused company, because its
draws two-thirds of its revenue from Macau. It’s that 'Macau focus' which makes Las Vegas Sands so exciting — and here’s why I believe it will be a home run stock for us.

"The Sands Macao opened in 2004. In its first year, it generated $340 million in operating profit. Last year, that number rocketed to $900 million. The 740-table Sands Macau is doing such good business that LVS recovered its entire $260 million investment in just eight months!

"With last December's opening of the Macau Venetian — and plans to open six additional Macau properties, including luxury hotels like the Four Seasons, St. Regis and Shangri-La — we believe astonishing growth will last for years.

"As a kicker, Las Vegas Sands has been granted a license to operate the first casino in Singapore: The Marina Bay Sands, which will be the largest conference center in all of Asia. The Marina Bay Sand is expected to open in 2009, and I believe it will be immediately and hugely profitable.

"Bottom line: The combination of Macau, Las Vegas and Singapore is the sweetest recipe for gaming profits I have ever seen. LVS is going to make a mountain of money in Macau and Singapore, but that’s just the tip of the Asian iceberg.

“Finally, we believe that the stock is on sale. It was only five months ago that LVS hit $148 a share, but is
now in the low $80s. Wall Street is worried that an economic slowdown in the U.S. will also drag the company’s profits down.

"Ha! The U.S. economy is indeed slowing, but since LVS gets two-thirds of its revenues from Macau, it is substantially insulated from any slowdown in gambling on the Las Vegas strip. That’s why I regard this drop as a gift and a great, great time to pick up some cheap shares."