The Sands Bethlehem Deal: Likely A Positive For Las Vegas Sands, MGM Resorts, MGM Properties

Most of the time when a company sells an asset to another company, the market rewards the perceived “winner” of the deal and punishes the loser. On rare occasion, the market will see a transaction as a win-win for both parties involved.

According to Deutsche Bank analyst Carlo Santarelli, news that Las Vegas Sands Corp. LVS 0.43% may be selling its Sands Bethlehem resort to MGM Resorts International MGM 0.97% could be a win-win-win for Sands, MGM and MGM Growth Properties LLC MGP 0.35%.

Asset Sale

Santarelli compares the deal to a similar deal last year in which MGM purchased Boyd Gaming Corporation BYD 0.7%’s stake in the Borgata resort.

“For MGM, the transaction would expand a northeast presence that has grown significantly over the past year, while MGP potentially benefits from a new rent stream,” Santarelli explained.

He added that Las Vega Sands generated a significant ROIC in the Bethlehem resort and its sale would strengthen the company’s balance sheet as it considers a possible boost to its capital return plan.

For Sands, Deutsche Bank estimates the sale could generate proceeds of around $1.2 billion. For MGM, the firm estimates…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!