Las Vegas Sands Corp. (LVS)

remccar (< 20) Submitted: 2/20/08 8:24 PM : Start Price: $87.75 LVS Score: -42.47

LVS is more than just a casino operation. Adelson understands from his background in creating COMDEX that it is the convention business that draws in the upper income clientele that drives hotel occupancy, food and beverage, entertainment consumption, and of course the big money in the casino.

He is replicating his Las Vegas Venetian convention cum gambling and entertainment model in Macau and Singapore. Macau is already larger than Las Vegas in terms of total total gambling revenues with only a very few properties in operation. Las Vegas is driven by convention business during the week and gambling on the weekend. Both Singapore and Macau are untapped marketplaces for convention business, something that is vital to international commerce.

The LVS stock price got whacked last Fall because of start-up costs on the two Macau properties. Occupancy was kept intentionally low in order allow time for the local staff to adjust culturally to the idea of providing good service, not something that is well understood in mainland China. When the Marina Bay casino in Singapore comes on-line, LVS will be the largest, most profitable casino outfit in the world and their land holdings will be worth billions.

The price will not stay at $80 fort very long. I see this as a four bagger in 2-3 years.

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