Friday, December 17, 2004
Copyright © Las Vegas Review-Journal

In second day of trading, Las Vegas Sands shares keep climbing

Las Vegas Sands Corp. continued its upward climb during its second day of trading on the New York Stock Exchange Thursday, gaining another $1.3 billion in market capitalization while closing at $49.11, up $2.55 or 5.48 percent from its inaugural session.

Wynn Resorts Ltd. also went along for the ride, closing at $69.79, up $3.16 or 4.74 percent.

Wednesday's opening for Sands Corp., in which shares shot up 61 percent from its maiden price, was the largest opening day of any American-based initial public offering in the past two years, according to Thomson Financial.

The operator of The Venetian now has a market capitalization -- the number of available shares multiplied by the price per share -- of more than $17 billion, the largest in the gaming industry.

Las Vegas Sands shares traded as high as $50.60 before declining somewhat. The company had a volume of 7.8 million shares traded.

Wynn Resorts, which is building the $2.5 billion Wynn Las Vegas, the company's traded four times its normal volume on Thursday, with 5.8 million shares changing hands. The price reached as high as $72.75 during the shares' session on the Nasdaq.

Gaming analyst Brian Gordon of Las Vegas-based Applied Analysis, said the company's similar business models, with resorts in Las Vegas and significant investments in the Chinese enclave of Macau, drove investors to the stocks.

"Las Vegas and Macau are the hottest gaming markets and investors are attracted the Las Vegas Sands and Wynn for that reason." Gordon said.

One gaming analyst issued an investors' note Wednesday, setting a target price for Wynn Resorts at $81 per share. Marc Falcone of Deutsche Bank said Wynn Resorts restructured its balance sheet through an equity offering and new debt financing.