Wynn Resorts stock

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Rx. Senior
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Just looked at the quote and chart. Once again everyone was right in that it would drop leading up to opening.
It was soaring at/over 70 a month ago and has dropped all the way to 49 and change, yeesh.
Many of the sharps on here predicted this.
 

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GD it happens without fail. Mirage always had this happen with its places. Harrahs has had it happen a couple of times with regional casinos. Working in the industry and closely with the investment community I can tell you the way the market values gaming stocks is hideous. They love "stories". They don't care about actuals. If you are making a boatload of money but don't have a good story to go with it, expect your stock to get hammered by the shorts. This is why every one of these high-flying casino stocks makes theoretical plans for casinos for years into the future. Stations is telling people about casinos that may not be built for 4 or 5 years, but that is what the Street wants. In other industries MGM may have kept their plans for City Center well under wraps until they started construction. Not in this industry, you announce it as soon as the blueprints are underway so the Street talks about your growth story.

Read some of the industry reports and you will see how crazy it is. Analysts are already saying things like City Center will be worth $3 to $4 billion in value to MGM and all they have is a parking lot and a modestly profitable casino there now. In between now and then they will have to throw in billions to get the project running and then start reaping some return. Conservatively speaking it could be 20 years before they actually realize $3 billion in cash flow above and beyond the amount they invest in this project. Anyone else think this is lunacy?

So in this case you still have Wynn's Macau property under construction holding a floor for the stock value, but once that opens who knows where the price goes. He will have to drive outsize returns on investment, something he has NEVER been known for. Thing is Steve W. doesn't give a chit about investors. He took their money so he had enough to build his properties, but he kept the controlling stake for himself and Kaz Okuda. Therefore even if a shareholder gets disgruntled, they can't take the company out from under him as they could with Mirage Resorts. That was my contention all along about why I wouldn't invest in Wynn, even though the stock was on fire.
 

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Based on what I've seen, the stock is going to go lower.

The general consensus amongst ALL my gambling friends is that they were disappointed in the place.

At best, they put it on par with Bellagio. Most prefer Bellagio. Wynn will need to make its statement on Customer Service. We will see...........
 

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Fezzik said:
The general consensus amongst ALL my gambling friends is that they were disappointed in the place.

At best, they put it on par with Bellagio. Most prefer Bellagio. Wynn will need to make its statement on Customer Service. We will see...........

FEZZ- I would take being on par with Bellagio as a great compliment.

I guess expectations were rather high for this resort.

Anxious to see the property.

-F-
 

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