3 Reasons to Buy Wynn Resorts

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Wynn Resorts (NASDAQ: WYNN  ) is one of only a few companies in the world allowed to build a casino in Macau, now the largest gaming market in the world. To give investors a detailed look at how large this market is, and Wynn's place in it, I've created a brand new premium report highlighting the opportunity and three reasons to buy the stock. Here's a small excerpt from the report, and a peek into why I think this is a great stock. 

Three Reasons to Buy

  • Wynn's resorts are geared toward high-end gamblers in both the U.S. and Macau, which gives the company a less volatile clientele during economic hardships.

  • Wynn has one of the strongest balance sheets in gaming, and is conservative about expansion, preferring to return cash to shareholders rather than risk it on questionable expansions.

  • When complete, Wynn's Cotai development could double the company's revenue and profit.

Wynn's opportunity is incredible, but there are always two sides to a story. In the full report, I've highlighted risks, as well as three reasons to sell this stock, one of which may be unfolding before our eyes. Click here to find out more. 

Read/Post Comments (5) | Recommend This Article (1)

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  • Report this Comment On December 10, 2012, at 11:14 AM, cp757 wrote:

    In 2007 LVS had under 3billion in revenue and in the last 5 years they have tripled revenue . LVS had not finished the Marina Bay Sands,Cotai Central, or Sands Bethlehem. Japan may be announced in 2013 and Sands Madrid will start construction in 2013. Sands Parisian in Macau will be finished in January 2016 with 3000 to 4500 rooms added to 9,324 4/5‐star hotel rooms. Lvs may announce 10,000+ hotel rooms to be developed on Hengqin Island,adjacent to Macao.

    All of that plus a 1.40 dividend and a 2.75 special dividend and a possible REIT.

  • Report this Comment On December 11, 2012, at 9:24 AM, cp757 wrote:

    WYNN has lost market share in Macau and will continue to have customers migrate to Las Vegas Sands on Cotai.

    Market Share. According to our checks, table-only December market share through the 10th was: SJM at 27.6% (vs November slot-inclusive share of 27.5%), Galaxy at 15.9% (vs 19.2%), LVS at 21.6% (vs 20.8%), MPEL at 15.0% (vs 13.8%), WYNN at 9.1% (vs 10.1%), and MGM at 10.8% (vs 9.6%).

    The name of the game in Macau is mass market and Las Vegas Sands is the king of mass market.

    Sands China starts accepting Alipay


    The Venetian Macao and Sands Macao now accept payments via Alipay, China’s most widely used third-party online payment solution, according to a press release from Sands China Ltd.

    The service provider had more than 700 million registered accounts as of June, and began facilitating transactions from the Venetian Macao and Sands Macao websites on November 28.

    Alipay is an affiliate of Alibaba Group.

    “Offering Alipay as an additional payment option when booking our hotels online represents a fabulous convenience for our guests who book online from the mainland,” said David Sisk, chief operating officer of Sands China.

  • Report this Comment On December 11, 2012, at 11:46 AM, cp757 wrote:

    This is the market share for WYNN in 2012. Do you see a trend ?

    Jan-2012 .. . 13.0% .

    Feb-2012 .. 12.5%

    Mar-2012 .. 12.0%

    Apr-2012 .. 12.5%

    May-2012 .. 11.0% .

    Jun-2012 .. 12.0%

    Jul-2012 ... 11.0%

    Aug-2012 . 12.0%

    Sep-2012 .. 13.0%

    Oct-2012 .. 10.1%

    Nov-2012 . 10.1% .

    Dec-2012 ... 9.1% .

  • Report this Comment On December 11, 2012, at 11:56 AM, cp757 wrote:

    Sterne Agee analyst David Balu wrote that Macau gross gaming revenue, or GGR, increased 27% during the first ten days of December, compared with the same period in 2011. Balu had previously expected Macau's GGR to rise just 11% in December, and he now anticipates that GGR will rise 16% this month.

    The market in Macau is going up and WYNN's market share is going down .

    Several factors are contributing to Macau's strong performance, including less restrictive visa requirements, improvements in China's economy, and the strengthening of China's currency, the analyst wrote. Meanwhile, other firms are likely to increase their Macau revenue estimates for 2013, Balu believes. He maintained Buy ratings on Las Vegas Sands. In mid-morning trading, Las Vegas Sands rose $1.00, or 2.30%, to $44.56.

    WYNN fell to 109.62

  • Report this Comment On December 11, 2012, at 1:20 PM, cp757 wrote:

    Nomura sees Macau gambling revenue rising 12%-15% in December from last year. US casino stocks were pressured last week after Chinese police reportedly detained people from Macau's junket operators, who extend credit and collect debts, and restricted cross-border financial transactions. But Nomura says it has seen "no signs of VIP stress" while "junkets may have been looser with credit" recently as business sentiment and GDP show modest improvement. Firm expects Las Vegas Sands (LVS) to be "the biggest beneficiary of mass growth," and says LVS, Melco (MPEL) and MGM have gained share at the expense of Wynn (WYNN) and Galaxy (GXYEY). LVS up 2.8% to $44.77 , MGM up 1.2% at $11.04 , and WYNN off 7c at $109.97 .

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Wynn Resorts CAPS Rating: ****