All the news out of China with the PBOC inter-bank rate spike and the weak HSBC PMI report shows that increasingly, people are "getting it" with LVS. It's taken awhile for the average, retail investor here in the states to come to grips that LVS is almost 90% Asian... and it's fair to say that yesterday's swoon had little to do with a residual impact from Ben Bernanke.
Still, a full understanding of just how the fortunes of Sands China really relate to economic activity on the mainland still eludes many American Investors.
That's not so true of Sands China investors in Hong Kong. The other day, I posted a reference to how Sands China's stock price has compared with the Hang Seng Index over the past year. It's quite a dramatic contrast. Yet here in the states, weak Chinese data weighs more heavily on the LVS mother ship.
Simply put, Hong Kong investors appear more perceptive of how Macau's mass market leader really correlates with the Chinese economy. Perhaps they know that there's never been a month over the past 10 years that mass market gaming didn't grow in Macau... even during the depths of the credit crisis, mass gaming STILL grew 2%... and lately, as China's growth has settled into the mid 7% range, mass market growth has soared at around 30% year-over-year.
The upshot? The current LVS swoon is an over-reaction. It's a nice price to buy it at if you don't have as much LVS as you'd like to have.
As a guy on Bloomberg said this morning, "in a few weeks, everybody will have forgotten Ben and the Chinese data and earnings season will be healing the market's wounds"...
... and I would postulate that that would be more true of LVS, and it's first, full quarter of a fully-functioning Cotai Central, that it would be true of most companies that trade on the NYSE.