Mr. Adelson acknowledges the depleted value of LVS's stock relative to it's holdings.
I think that the recent slide will culminate in an announcement of a REIT spin-off.
The relative value of LVS's stock is much greater when you factor in the value of their Malls, Gaming Division and Hotel properties. Combined, they total $80-$85 per share. I DON'T THINK Sheldon will ignore this untapped value to shareholders. Land & Buildings analyst Jon Litt says $85 soon and $170 "around the corner". If you break the company down, it's not that hard to imagine. They traded at $160 in 2007 on faaar less revenue!!!!!!!! $$$$$$$$$$$$$$$$ !!!!!!!!!!!!!!!!!!! $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
I don't see it happening, cdmar. The one company that did it here in the states is a company who only operates in the U.S. where REIT statutes are in force. Further, it's a company that was focused on unlocking value for shareholders... not growth.
LVS is about growing by recycling the value of it's "non-core" assets by selling them and re-investing the proceeds into new developments. Spinning off it's non-core assets into a REIT doesn't "monetize" those assets so doing so starves LVS of the working capital it needs to grow. With a REIT, you get more shares in another company instead of an infusion of cash into the company you already own which it can use to grow... in accordance to it's widely trumpeted growth strategy.
The only way I can see LVS doing a REIT spin-off is if they do a REIT IPO and state in the prospectus that the proceeds of the IPO will be to purchase assets from LVS. That way, LVS is essentially getting the working capital that it needs from non-core asset sales by selling them to new investors in the REIT IPO instead of simply funding the REIT with spun-off assets.
If you understand LVS's master plan for growing the company, you wouldn't see a "REIT spin-off" as being any part of such a strategy.
This is a stronghold on the shorts. Yes, we'll see reports from the Wally J. about corruption but the REIT spin-off is big news and just the possibility (quite strong here) keeps shorts at bay. Just look at the weak open and strong close every day. Very powerful stuff folks.
At least $60 in the near term on Feb's gaming revenue data (remember, it was supposed to come in at +7% yoy and hit almost 12%, just like every month in the past five).
There are more than twice as many shares now than when the stock was in the $140's. International properties make it harder to do a REIT. Maybe SA can find a way? If not, malls sales are only a few years away.