Sheldon Adelson's Losing Streak

Back in March, when his company, Las Vegas Sands (LVS), was trading at over $80 a share, I reckoned that Sheldon Adelson's bubble was ripe for bursting. Today, it's bumping along at about $11.

Is Adelson still the richest Jew in the world? According to Forbes, he's not even the richest Jew in America: that would be Mike Bloomberg, with a net worth of $20 billion.

Google co-founders Larry Page and Sergey Brin are worth more than Adelson, too. Adelson was worth just $11 billion on October 1, and that was with LVS trading at almost three times its present level; he's down in single digits at this point. I hope he's diversified: Las Vegas Sands has almost $11 billion in debt and less than $1 billion in cash; a large chunk of its assets are unbuilt casinos in Macau. If Adelson can't refinance when he needs to, LVS could go to zero.

Comments

[Richard Col...:]

What we don't need is more negative comments. Is this the best you can do Felix Solman?. Is it any wonder that so many journalist are called nitwits. Those like you continue to prove it.

There is nothing here that is not commonly already known and you supply no new information.

Your conclusion is just an apparent "uneducated" guess. Adelson is having no trouble paying all the bills with casino revenue.

Daniel Kowkabany

2008 Oct 17 10:56 AM

[LennyLichte...:]

Felix was speaking to the ability to refinance debts. CIT is profitable today but may not exist tomorrow due to inability to refinace debts. Liquidity and solvency are different things. LVS may experience a liquidity crisis that sends the company into bankruptcy.

"What we don't need," you said. If you have a position you should disclose it. There is no problem with Felix's article.

Disclosure: Long CIT. No position in LVS

2008 Oct 23 06:10 PM

[vegasquixote:]

Adelson has invested millions in undermining democracy in the US and in promoting war worldwide with his shill organization Freedom's Watch. He also has no problems dealing with Chinese communists. His high rollers at the Venetian included big time international drug trafficker, Zhenli Ye Gon. These losses couldn't happen to a nicer guy. It's unfortunate that all his non-union workers face job loss.

2008 Oct 23 10:28 PM

[stocktrader...:]

It is absolutely amazing to me that someone can be bearish on a stock that has gone from it's 52 week high of 148 to 8 and only now they become bearish. Brilliance would have been to be bearish when LVS was trading at it's highs and was overvalued. Remember: Buy low and sell high.

2008 Oct 24 05:09 AM

[Yehoshua:]

Wrong, Mike Bloomberg is NOT the richest Jew in America.
And too, this is no joke. In this "mark-to-market" world of today, the richest Jew in America, is an American who lives in Jerusalem, as his "privately held" portfolion, of world class "IP" that was worth according, to Warren recently, 50 bil. US, has since increased 4/5 fold in the past months. Why? It's embodies the macro global SOLUTION for the US and G-9 problems and he's kept it out of the market(s) to avoid the certain DILUTION the ML, GS and MSs would've have imposed with their contagion NOISE...
Regrards, YYBA

2008 Oct 27 04:16 AM

[Saladboy51:]

What a huge a**hole Adelson is! Criticising President Obama for cracking down on unnecessary spending by companies that are getting our taxpayers money, not just saying don't go to Las Vegas! What a true fool and jerk!!! All he cares about is making more and more money. And he wants you and me and all the poor American taxpayers to keep giving money to big corporations so they can go to Las Vegas and make him richer and richer! He is NOT a good, true American. He obviously only cares about himself and making more and more money while we, the average American are suffering. What a complete, total fool and selfish person. I hope he loses a whole lot of money!

Mar 04 07:49 PM

[c5966:]

Actually, you should be the last person calling anyone a "nitwit".

A company's bills are NOT paid with revenue. A company's bills are paid with CASH -- as in cash flow.

What's that old saying about people living in glass houses?


On 2008 Oct 17 10:56 AM Richard Collins; Claremont, CA wrote:

> What we don't need is more negative comments. Is this the best you
> can do Felix Solman?. Is it any wonder that so many journalist are
> called nitwits. Those like you continue to prove it.
>
> There is nothing here that is not commonly already known and you
> supply no new information.
>
> Your conclusion is just an apparent "uneducated" guess. Adelson is
> having no trouble paying all the bills with casino revenue.
>
> Daniel Kowkabany

Dec 14 03:42 AM