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Adelson gains $1.2 billion as gaming soars on Street

Stocks within the beleaguered gaming sector scored a one-day boost Wednesday despite the markets' overall volatility. Las Vegas Sands Corp., along with Chairman and Chief Executive Officer Sheldon Adelson, were the biggest benefactors.

Shares of casino operator jumped 80 percent Wednesday on the New York Stock Exchange as the stocks of publicly traded casino companies and gaming equipment manufacturers rose throughout the day.


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  • Adelson, who controls almost 70 percent of the company personally and through family trusts, saw his net worth climb more than $1.2 billion. The day before, it was reported that Adelson's net worth had declined by more than $16.6 billion since the start of the year due to the falling price of company stock.

    Forbes magazine ranked Adelson as America's third-richest person last year, but dropped him to 15th this month based on the declining stock price of Las Vegas Sands.

    Las Vegas Sands jumped $3.96 to close at $8.91. At one point, the stock was up to $10.97. Las Vegas Sands was trading at $148.76 a year ago and sunk into single digits last week. More than 55.8 million shares of Las Vegas Sands were traded Wednesday, roughly eight times the average daily volume. The jump in price was the company's single largest one-day percentage increase since its December 2004 initial public offering.

    Analysts said an interest rate cut by the Federal Reserve and an upbeat earnings release by MGM Mirage helped fuel the sector. MGM Mirage said its third-quarter profits fell 67 percent, but the company's efforts to reign in costs and slow developments was a positive twist.

    Goldman Sachs gaming analyst Steven Kent said any balance-sheet news, positive or negative, would drive the share prices of MGM Mirage and other gaming stocks in the near term.

    While Las Vegas Sands had the largest percentage increase within the sector, shares of Wynn Resorts Ltd. had the largest monetary increase, jumping $8.17 on the Nasdaq National Market to close at $41.05, up 24.85 percent.

    Shares of the smaller casino operators also rose. Boyd Gaming Corp. climbed 28.54 percent to close at $5.63, up $1.25; Pinnacle Entertainment Inc. gained 60.73 percent to close at $4.42, up $1.67; Ameristar Casinos Inc. was up 19.10 percent to close at $8.17, up $1.31.

    Slot maker International Game Technology closed at $12.57, up $1.30, or 11.54 percent, while rival Bally Technologies Inc. finished the day at $20, up $2.37, or 13.44 percent.

    Las Vegas Sands shares were reportedly helped by news from the other side of the globe.

    Bloomberg News reported that the Singapore government was in talks with the company to help it finish construction of the $4 billion Marina Bay Sands in downtown Singapore.

    The Singapore Tourism Board said it is seeking to "facilitate the success" of the project. Company spokesman Ron Reese wouldn't comment on the report.

    Bloomberg News contributed to this report. Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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    bighitter wrote on October 31, 2008 02:04 PM: Just plain and simple he is not a nice or happy man. I worked at the venetian for many years and he still has the same, its all about me attitude. Yes I have a choice to go somewhere else but, due to being there for so many years and having so many friends I chose to stay and keeping working there. It was a good place to work but the last 4 years moral and the atmosphere has dropped. Invest in America not China. The American Workers that live and work in Las Vegas.


    Curious wrote on October 30, 2008 01:28 PM: How is Jobs Jobs comments not applicable to an article about the largest GOP puppet master and fund raiser and in Nevada.


    casincon wrote on October 30, 2008 12:16 PM: Yeah, and I won $150 on the slots yesterday, and lost $250 today. . . I can tell you all about "volatility"!!! Someone needs to tell Adelson that the Palazzo is a total dog, and his slot selection in the Venetian and the Palazzo sucks!!! Strip casinos need to go after the local and midrange market. Obviously, some of us ARE still gambling, but we won't walk in the door unless we get a free meal and free play on decent slots.


    Steve Wynn wrote on October 30, 2008 11:10 AM: You would think with a couple billion in the bank, he could do something with his comb-over.


    hilobamacaine wrote on October 30, 2008 10:48 AM: didn't al bore get a nobel prize?? being a nobel laureate doesn't give you credibility


    Tom wrote on October 30, 2008 10:24 AM: Jobs Jobs is abusing the "Comments Policy" of the RJ for political statements not applicable to posted comments and is being reported.

    Get a life man/woman and take your opinions to the Clark county welfare department. Perhaps they will give you the attention you so obviously need.


    wayneaaron wrote on October 30, 2008 06:47 AM: He still has a long way to go.


    Jobs Jobs wrote on October 30, 2008 06:22 AM: Seventy-six Nobel Prize laureates in science endorsed Barack Obama yesterday — the largest number to ever express support for a presidential candidate — “citing his commitment to improving U.S. competitiveness by boosting science, technology, education and research.” The scientists also “criticized the Bush administration for damaging scientific development.”



    Jobs Jobs wrote on October 30, 2008 06:16 AM: Elliott Parker, Ph.D., who is a Professor of Economics at the University of Nevada-Reno. Using data from the U.S. Department of Commerce’s Bureau of Economic Analysis, Dr. Parker first compared the economic performance of Republican and Democratic presidencies from 1929 through the end of 2005. He found that the Real GDP Growth Rate (annual average) was 1.9% for Republican administrations and 5.1% for Democratic administrations during this time. Real GDP Growth Rate Per Capita was .7% for the Republicans and 3.8% for the Democrats. However, the professor pointed out that the years comprising the Great Depression and WWII should probably be excluded from the comparison. So economic performance from 1949 (end of Truman administration) to 2005 was compared, which showed Real GDP Growth Rate (annual average) under Republican administrations now stood at 2.9% and Democratic administrations at 4.2%. Real GDP Growth Rate Per Capita was 1.7% for the Republicans and 2.9% for the Democrats. These results prompted Dr. Parker to conclude that “the economy has grown significantly faster under Democratic administrations, and more than twice as fast in per-capita terms.”

    The University of Nevada-Reno economics professor also uncovered the following while conducting the economic comparison between Republican and Democratic presidential administrations from 1949 to 2005:
    • Unemployment Rate- Republicans 6.0%, Democrats 5.2%
    • Change In Unemployment Rate- Republicans +0.3%, Democrats -0.4%
    • Growth of Multifactor Productivity- Republicans 0.9%, Democrats 1.7%
    • Corporate Profits (share of GDP)- Republicans 8.8%, Democrats 10.2%
    • Real Value of Dow Jones Index- Republicans 4.3%, Democrats 5.4%
    (in logarithmic growth rates)- Republicans 2.8%, Democrats 4.4%
    • Real Weekly Earnings- Republicans 0.3%, Democrats 1.0%
    • CPI Inflation Rate- Republicans 3.8%, Democrats 3.8%