As discussed in our 5/15 note, "LVS: A QUICK LOOK AT MACAU IPO", we concluded that an IPO was a good idea in principle but timing may not be imminent.  Assembling the appropriate Board of Directors may be the most important impediment to a timely listing.  The following are some pertinent Hang Seng regulations for issuers:


  • Every board of directors of a listed issuer must include at least three independent non-executive directors
  • At least one of the independent non-executive directors must have appropriate professional qualifications or accounting or related financial management expertise.
  • Every listed issuer shall appoint two authorized representatives who shall act at all times as the listed issuer's principal channel of communication with the Exchange. At least one must be a director (the other being the issuer's secretary).
  • The authorized representatives must be the principal channel of communication between the Exchange and the listed issuer and to supply the Exchange with details in writing of how he can be contacted including home and office telephone numbers and, where available, facsimile numbers.
  • If/when they leave HK, suitable alternates must be appointed, available and known to the Exchange and to supply the Exchange with details in writing of how such alternates may be contacted including their home and office telephone numbers and, where available, facsimile numbers


If they choose the Macau PO route, LVS will be forced to maintain a BOD that may be a bit more independent than what Chairman Sheldon Adelson is accustomed to.  Furthermore, at least one director must be permanently situated in Hong Kong.  As one of my Macau consultants put it to me this morning, "LVS is going to need to recruit some real heavyweights to make this work."  The Hong Kong business elite tend to stick together.  While based in Macau, Stanley Ho can certainly be considered one of the elite.  Is it a coincidence that Sheldon has been "making nice" with Ho as of late?


The bottom line is that an IPO is a very viable option for LVS but Sheldon needs to play his cards right.  This could take some time.

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more

Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

read more

Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

read more