Sands Opens Singapore Casino
Las Vegas Sand’s (LVS) Singapore casino, Marina Bay Sands, has actually been open almost two months but it’s finally fully open. Included is the Skypark, which is a surfboard shaped park on top of the three towers.
This completes Sand’s major expansion into Macau and Singapore. Sure, more is coming with three new hotels opening in Macau but the major groundwork has been laid. Now it’s time to see results.
Sands has basically gotten a pass on earnings over the last few years as they spent money on pre-opening expenses for their new casinos. They’ve also added a lot of debt with over $11 billion in debt at the end of Q1. Another disappointing quarter could be costly for Sands. They’re walking a fine line and if the economy double dips or any of their openings are lower than expected the stock could be crushed.
For now I’m still long, although I’ve cut my position by 75%. I would consider getting back in below $20 and getting out altogether above $30. Until either of those happen I’ll sit where I’m at.
Disclosure: The author is long LVS.