• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

The recent LVS news has been positive, as has our stance on the stock.  However, following the Bill Weidner and Brad Stone departures, it seems that Mark Brown, President of both Sands Macau and Venetian Macau, has been dismissed from the company.  We’re all for cost cutting but is the knife penetrating too deep?

We continue to believe LVS is worth more than where the stock is trading, even after the 200% move off the March 9th bottom.  However, the number of senior management departures is starting to trouble us a bit, especially as they come at a time when LVS appears to be turning a corner.  Asset sales and refinancing now looks more likely, LVS is outperforming in both Las Vegas and Macau, and Sheldon is putting his money where his mouth is.

Sheldon needs to communicate how he will replenish the management ranks to keep this positive momentum going.  The Venetian Macau and Sands Macau can’t run themselves, neither can LVS corporate.