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Las Vegas Sands Corp. Message Board

  • dbguru dbguru Aug 15, 2007 7:28 PM Flag

    Debt to equity ratio over 2:1

    That's not good during a credit market crash. How will LVS stay liquid?

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    • Their existing properties are generally cash positive, and they're nearly done with Venetian-Macau and Palazzo using their existing ~$3B line of credit. None of that is really at risk.

      What might cause them trouble is arranging the next ~$10B+ that they need to begin accessing right away to build stuff like Singapore that's already been given an opening date, but without the funding in place. If the lended crisis persists, and it slows down or prevents LVS from getting funds, it could at a minimum delay all those amazing expansion plans.

      Long term, they're fine. If they wait long enough, the positive cash flow from the casinos they've already built can clear existing debt and/or pay for new development. And the lending crisis won't last forever - even if it lingers for a year or two LVS will still be here.

      But they might not have a $200/sh stock price like the hypesters would believe is imminent...

      • 1 Reply to stonewalk428
      • stonewalk a lot of their debt is going to be paid down by the various hotels that have bought up pieces of their land in macau. Also i Believe they have an additional $5 B line oe of credit.

        I don't thinK LVS is a screaming buy or sell at this pt, but in this market my bet is it'll lag downwards like most stocks are.

        Also, I would start accumulating stock in the low 80s, and be buying more in the 70s.... great long term potential...

        I do think 200 is not unreasonable in 3 years....

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