Las Vegas Sands (LVS) now at $14 a share

The Las Vegas Sands Corp. (NYSE:LVS) shares have fallen 86% since the start of the year and 66% in the last month.  LVS and other Vegas stocks are starting to sound like the next Lehman or WaMu.  MGM Mirage (NYSE:MGM) is at $14 a share as well.  Is it over for Vegas?

Last week Sheldon Adelson the self-made billionaire who is the chief executive and principal shareholder of Las Vegas Sands, took $475 million from his own coffers to buy his company's convertible debt to avoid violating lenders' covenants in the third quarter.  How is that for crazy?  Double down baby, let it ride, on your own company!

Jake Fuller of Thomas Weisel Partners LLC said in a client note that Adelson's move buys the gaming operator some time, but Las Vegas Sands still must deal with raising money for its Cotai Strip development plans as well as growing Macau market concerns.

Fuller thinks Las Vegas Sands may step back from seeking $5.3 billion for its Cotai projects and instead look to get $2 billion. Flat September revenue and concerns about potentially tighter visa restrictions for Macau also weigh on the stock, he said.

Furthermore, the Las Vegas market presents problems as consumers continue to curb spending due to the ongoing housing downturn, rising gas and food costs and eroding credit.

"A trip to Vegas this week left us with the feeling that trends continue to deteriorate there as we ate dinner in an empty restaurant and did not encounter a single taxi line in three days," Fuller wrote.

The analyst cut his price target to $33 from $41 and reaffirmed a "Market Weight" rating.

Should things get any worse, LVS and MGM could become penny stocks, is that really possible?

No way, American's are going to start running to Vegas if they can't afford to fly there just to try their luck at the tables, forget about the economy and gamble their money at the Sands and MGM.  Grab a few drinks with your buddies and have a good time, that's what all Americans need right now.  Right Mikey?

Thing about gambling in Vegas, you know the House has the odds, if you buy a stock on the NYSE, NASDAQ, or AMEX, you don't know the odds.

SOURCE: http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20081003&id=9221549