Las Vegas Sands (LVS) Bets on Singapore

Posted Sep 3rd 2010 10:30AM by Steven Halpern
Filed under: International Markets, Newsletters, Las Vegas Sands (LVS), Stocks to Buy

"We remain as enthusiastic as ever about the fundamental story for Las Vegas Sands (LVS)," says Mike Cintolo.

The editor of Cabot Market Letter explains, "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."

Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.