News By Photos web page today posted an excellent entry detailing that Mark Cuban is small potatoes in the world of SEC malfeasance. The SEC alleges that Mark Cuban used confidential information to avoid $750,000 in stock losses and is charging him with Insider Trading. Cuban claims the charges are false and that the" real crooks in all this" are the insiders at Mamma.com.
Yet over at the Venetian Hotel and Casino, News By Photos reports the following is going on:
"Meanwhile Friday, to Avoid BANKRUPTCY by not meeting obligations to its lenders on a $3.8 billion portion of its $8.8 BILLION debt - WITHOUT SHAREHOLDER APPROVAL - Las Vegas Sands Corp [LVS] NYSE - said it sold 200 million common shares for $5.50 apiece for $1.1 billion - DILUTING the Common Stock Shareholders Holdings.
The company also sold 5.2 million units consisting of one share of preferred stock plus a warrant to buy stock at $6 a share. The units sold for $100 each.
Founder and Chief Executive Sheldon Adelson and his wife also purchased roughly 5.25 million shares of preferred stock and warrants at the same terms as the public offering. The warrants included in the public offering and sale to the Adelsons could raise an additional $1.04 billion.
GREAT for the Adelson’s - TERRIBLE for POOR JOE - the COMMON STOCK Shareholder of LVS. the financial viability of the company has been seriously jeopardized - it more than doubles the number of outstanding shares and significantly dilutes shareholder value.
If you’re a common stock shareholder of LVS you’re Nuts to not SELL and get out. You DO NOT MATTER at ALL , at ALL , At ALL.
Las Vegas Sands is also looking to address some in-house concerns , disclosing in an SEC filing last week that its board created a committee to evaluate the company’s decision making and resolve disputes between Adelson and other senior managers. The filing said the committee was formed to address “a loss of confidence” by managers in how the company is being run.
Singapore is looking for ways to avoid ending up with a mammoth unfinished project on a prominent piece of land if US casino operator Las Vegas Sands Corp. is unable to complete a $4.9 billion gaming venture. The developer and operator will delay the completion at best or could end up unable to fulfill the contract. There are alarm bells all over the place. Singapore government officials are making contingency plans if the financing falls through - They are looking for a plan B , if things turn sour.
LVS will lay off as many as 11,000 construction workers in Macau after a cash crunch forced it to halt construction on multibillion dollar projects in the gambling mecca. The Global Financial Crisis has battered casino operators , and once booming growth in Macau has slowed as visa restrictions on visitors from mainland China hurt business.
Not a Bright Outlook for LVS , the company should go Private - instead of Ripping Off common shareholders. How is taking the Stock[LVS] off the Board [halt trading] for 3.5 hours with stock at $8 DILUTION of the Stock , and begin trading again at $5 - How is that not INSIDER TRADING , MR SEC?"Of course, the federal government does not measure time like most mortals. We won't hear from the SEC on this one until 2020 and me thinks Sheldon will be deep into his dirt nap by then.