LVS

Las Vegas Sands Corp

Consumer


Presented:04/19/2016
Price:$52.50
Cap:$41.77B
Current Price:$50.95
Cap:$37.52B

Presented

Date04/19/2016
Price$52.50
Market Cap$41.77B
Ent Value$43.76B
P/E Ratio21.26x
Book Value$8.58
Div Yield0.06%
Shares O/S795.65M
Ave Daily Vol5,355,220
Short Int3.26%

Current

Price$50.95
Market Cap$37.52B
Las Vegas Sands Corp. own and operate integrated resorts in Asia and the United States. It is the global developers of destination properties, unlike the other hotels on the Las Vegas Strip and offers the array of high-end amenities and integrated them under one roof to provide the ultimate guest experience. From sumptuous suites to plush meeting rooms, celebrity status night clubs, intimate lounges, headliner and resident shows, upscale gaming, ultra-relaxing spa services, a wide range of retail shops and award-winning cuisine. The company principal operating and developmental activities are geographically classified into three areas: Macau, Singapore and United States. In Macau, the company's operating segments are: The Venetian Macau; Four Seasons Macau; Sands Macau; Sands Cotai Central; and Other Asia. In Singapore, their operating segment is Marina Bay Sands. In the U.S., operating segments are: The Venetian Las Vegas, which includes the Sands Expo Center; The Palazzo; and Sands Bethlehem. Las Vegas Sands was founded by Sheldon G. Adelson in August 2004 and is headquartered in Las Vegas, NV.

Publicly traded companies mentioned herein: Galaxy Entertainment Group (27 HK), Melco Crown Entertainment Ltd (ADR), MGM Resorts International (MGM), Las Vegas Sands Corporation (LVS), Wynn Resorts Limited (WYNN)

Highlights

The presenter believes that traffic is returning to the Macau market again after 24 months of declines that drove anywhere from 25% to 50% decreases in top lines across the market. Anti-corruption busts and visa restrictions in China, and an overall slowdown in the Chinese economy contributed to the weakness seen as well. He is long shares of Las Vegas Sands (LVS) and sees the current value (low $50s) underpinned by asset value and an attractive 10% FCF yield and 5.65% dividend. If LVS’ EBITDA sees a positive inflection as he anticipates, there is a case to be made for 50% upside as the market recovers.

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Idea Discussion

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