Wednesday, October 26, 2011

Research: LVS Las Vegas Sands in trouble

This company has been in significant financial trouble and its statements shows its hardships. Billions of debt have been taken out in the recent years to help keep LVS going. It's now at 10bn in debt and 23bn in total liabilities, and it's showing only 1.8bn in cash flow from operations 2010. LVS still faces significant costs in capital expenditures, which it looks like it is unable to cut. These are probably the capital expenditures that are required to keep the business running, like building maintenance, new furniture for the hotel and casino. Receivables are increasing, my guess from giving out credit to guests. Lending money to people for gambling is probably the most dangerous kind of credit. Even with all the measures taken, the 2010 numbers still don't paint a picture of a viable company. I expect LVS to be in trouble for years to come.

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