Las Vegas Sands’ stock jumps

By Steve Green (contact)

Thursday, Feb. 26, 2009 | 10:47 a.m.

The stock of gaming giant Las Vegas Sands Corp. jumped 33 percent today as investors weighed news involving new analyst opinions and a dispute over a ferry that the company uses to bring gamblers from Hong Kong to its properties in the Chinese district of Macau.

Sands stock traded this morning at $2.87, up 71 cents, as an "outperform'' ranking was issued on the stock by analyst Sanford C. Bernstein. Earlier in the week, BMO Capital Markets had forecast a 2009 loss of 33 cents per share, up from its previous estimate of a loss of 24 cents per share.

Las Vegas Sands, like other gaming companies, faces a dramatic downturn in business for its massive properties on the Las Vegas Strip. At the same time, it's preparing to open new gaming operations in Pennsylvania and Singapore.

For the fourth quarter ending Dec. 31, Las Vegas Sands reported revenue rose 4.3 percent to $1.09 billion and that it lost $111.3 million or 27 cents per share vs. a profit in the 2007 quarter of $39.9 million or 11 cents

On Wednesday, Las Vegas Sands said it would appeal a court ruling challenging its Cotai Strip CotaiJet ferry concession -- a ruling issued at the request of a competitor for a ferry concession.

"The company intends to file an appeal within the next week, and expects to continue to operate its ferry service until a decision on the appeal is rendered or the matter is otherwise resolved,'' Las Vegas Sands said, adding that both it and the government of Macau are parties to a lower-court ruling challenging Sands' concession.

"We believe the Macau authorities are committed to finding a solution that, in the event the lower court ruling is not reversed, would ensure that CotaiJet ferry operations are not suspended and that the public interest is protected," Las Vegas Sands Chairman and Chief Executive Sheldon Adelson said in a statement.

The CotaiJet ferry service is an important link between Hong Kong and Cotai, a strip of land in Macau where Sands operates its Venetian Macau resort. The concession was challenged by ferry operator Hong Kong North West Express, which argues such concessions should be issued based on a public tender process.