What about Sheldon Adelson’s gambling empire? Global markets

Sheldon Adelson, who died yesterday of cancer at the age of 87, is the founder, controlling shareholder and CEO of Las Vegas Sands.

LAS VEGAS SANDS CORP
-2.33%

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opening:56.33

Tall:56.55

low:54.08

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(NYSE: LVS). His death left a big hole in society, as it is currently unclear whether the family has an interest in continuing to control the international gambling company.

Last week, when it was reported that Adelson was suffering from lymphoma and receiving treatment, the company’s board of directors authorized Robert Goldstein, a senior executive at the company for many years, to be the acting CEO of the gambling chain operating in Nevada and Macau, China; the two global gambling capitals.

Morgan Stanley thinks Goldstein will continue to run the company on a regular basis, but does not rule out a family member taking over the family business. “The question is what will happen with Adelson’s 56.6% holdings in the company,” said Thomas Allen of Morgan.

The family has several options. The first is to maintain the position. The second is to sell part or all of it on the open market, even to a potential Chinese buyer. But the investment bank Jeffries believes this will not happen. “In any case, we expect the stock’s recovery to continue,” they wrote in Jeffries, giving the stock a target price of $ 66, or an upside of 21.5% as of this writing.

Morningstar also believes that the company will remain stable under the leadership of Goldstein, who has been with the company since 1995, and since 2015 has served as operations manager in Vegas and the company’s COO. Market analysts believe that the company will return to giving dividends as soon as it returns to being profitable. During 2020, the company’s share fell by about 15%, and has plunged another 9% so far this year. LVS is traded at a value of $ 41.5 billion.

Although the company is located in Las Vegas, and has a large number of properties including the famous Venice Hotel, most of the revenue comes from the East, mainly China and Singapore. In 2019, sales of Vegas operations fell by about $ 1.8 billion or about 13% of total revenue. In October it was reported that the company was considering selling the activity on Vegas Avenue, and at the same time the company confirmed the rumors. Tonight, a spokesman for Sands announced that there is no further comment on this issue.