Las Vegas Sands sevened out in its bid to develop two new sites in Macau. The resulting drop in the stock price hit our stop and took us out of that play.
On a very good follow on breakout day you would have thought everything would be up big. Fortunately most of our positions were up big but the news from the Las Vegas Sands was too big for the market to overcome.
The Sands had requested the rights to build on sites known as Sites 7 & 8 and the government rejected the request. The Sands has 15 days to appeal and up to one month to appeal the decision in court. The Sands had already spent more then $100 million in pre-construction costs as of the end of Q3. Some analysts believe that China believes it is missing out on the big profits from these resorts and is looking to up the ante for future developments.
LVS declined -$5 from the early morning highs to stop us out at $48.50 with the option at $1.60. That is a 16-cent loss on that position. Fortunately the market pushed all our other positions even higher so a 16-cent loss is just a blip on the screen.
No changes for Friday. Let's hope this rally stretches one more day and then the weekend will bleed the premiums once again.
Current Position Changes