This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Five Dumbest Things on Wall Street This Week: July 13

4. Adelson's Wacky Wager

Any high-rollers out there want to try and take a billion off Las Vegas Sands (LVS - Get Report) Chairman Sheldon Adelson?

Hey, we're not kidding. The casino kingpin offered 1,000-to-1 odds that nobody will be able to substantiate the claims of former Sands China CEO Steve Jacobs that Adelson promoted prostitution at his hotels and violated the Foreign Corrupt Practices Act by putting a government official on his payroll. Jacobs, who is suing Adelson after being fired in 2010 for allegedly breaking company policy, made the accusations in a court memorandum released last month.

"If someone wants to put up a million they can hope to win one billion -- but that won't happen because there isn't a breach of FCPA. Not even a hint," Adelson told Forbes on Monday.

Take that Mitt Romney you piker! We all remember your ten grand bet during the Republican primaries back when Adelson was backing Newt Gingrich instead of you, but even with all your Bain bucks you can't cover Shelly's action, so suck on that.

Of course, Jacobs could place such whale-like wagers should he collect the entire $100 million in damages he is seeking. However, that figure is as ludicrous as his former boss's bet. Even though the suit has prompted the Securities and Exchange Commission to start sniffing around Sands, neither the company nor Adelson have been charged with anything. The only real hit to the gaming giant, as Adelson told Forbes, was an $8 billion reduction in the company's market value because of the bad press.

Or at least that's the number according to Adelson's calculations. Heck, who knows, maybe the prostitution charges added a few dollars per share to the stock price. You know what they say about what happens in Macau right?

Anyway, this whole Sands showdown is almost as absurd as the legal battle over Wynn's (WYNN - Get Report) Macau unit. That fight is currently being waged between Steve Wynn and his former partner Kazuo Okada, and it has also attracted government scrutiny as a result of overblown accusations on both sides. And like his fellow casino mogul Steve Wynn, Adelson has no qualms about going all-in to win.

"I'm going through right to the end. It's the only way I can prove unquestionably that everything he said was wrong. If I settle the case then people would say, 'He settled because there was evidence that would come out to show he truly was a criminal and truly had a prostitution strategy.' ... When the time comes I'll extract what's due," said the Sands CEO.

Alas, Adelson will not hedge his bets, but he obviously will make silly new ones to blow this already puffed-up case even further out of proportion.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BPI $8.72 1.90%
DUK $79.38 -1.00%
LVS $45.46 2.30%
WYNN $91.16 1.70%
AAPL $92.53 -0.76%


Chart of I:DJI
DOW 17,715.47 +54.76 0.31%
S&P 500 2,054.55 +3.92 0.19%
NASDAQ 4,727.3670 +10.2730 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs