The Worst IPO of 2012

By Austin Smith | More Articles
February 7, 2012 | Comments (2)

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor/analyst Austin Smith and editor/analyst Isaac Pino discuss topics across the investing world.

IPOs are exciting, but they can also be wealth-destroying. The gaming space has attracted a lot of attention lately with its impressive returns over the past few years. With growth in Macau slowing -- from ridiculous expansion to still amazing but less ridiculous-- many investors are looking at other opportunities.You may be tempted to pick up shares of this hot gaming IPO in that hunt, but Austin is seriously worried about the balance sheet this company brings to the table. In his opinion, there are far better plays out there. Look to companies like Wynn Resorts (Nasdaq: WYNN ) and Las Vegas Sands (NYSE: LVS ) , whose managements are as impressive as their portfolios, to deliver far better returns over the next few years.

The domestic gaming market, though showing a few signs of life, remains remarkably weak. Fortunately, there are three companies whose international growth stories we're particularly bullish on. If the trend continues, investors could be looking at internationally fueled new stock highs. Uncover them in our special free report: "3 Companies Set to Dominate the World." The report won't be available forever, so we invite you to enjoy a free copy today. You can access it by clicking here. Enjoy, and Fool on!

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Austin Smith has no positions in the stocks mentioned above. Isaac Pino has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On February 07, 2012, at 3:49 PM, cp757 wrote:

Austin you have hit the nail on the head . Caesars is a company that the investors got for 28 billion dollars in 2008 and is now worth whatever they can get for it .In my opinion that is the reason for the IPO..As soon as it starts trading all the investors like Paulson will dump the shares they have. With 22 billion in debt its like the guy that bought his house for 280,000 in 2008 and now its worth 180,000 but he owes 220,000.. You may love the casinos but you are buying the debt. Its like buying the anchor on the Titanic.Good investing to anyone that wants in but as Austin said you should put your money some where else.
Report this Comment On February 08, 2012, at 12:52 PM, TMFBWItime wrote:

@cp757
Thanks for the comment! I'll be following this story pretty closely as they approach IPO, and hopefully getting investors to think twice.
Fool on.

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 1775204, ~/Articles/ArticleHandler.aspx, 5/27/2012 9:14:10 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes