2-Star Stocks Poised to Plunge: Wynn Resorts? (WYNN)

2-Star Stocks Poised to Plunge: Wynn Resorts?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casino operator Wynn Resorts (Nasdaq: WYNN ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Wynn's business and see what CAPS investors are saying about the stock right now.

Wynn facts

Headquarters (founded)	Las Vegas (2002)
Market Cap	$14.0 billion
Industry	Casinos and gaming
Trailing-12-Month Revenue	$5.2 billion
Management	Founder/Chairman/CEO Stephen Wynn CFO Matt Maddox
Return on Equity (average, past 3 years)	14.8%
Cash/Debt	$1.9 billion / $3.1 billion
Dividend Yield	1.7%
Competitors	Caesars Entertainment Las Vegas Sands MGM Resorts International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 29% of the 1,239 members who have rated Wynn believe the stock will underperform the S&P 500 going forward.

Late last year, one of those bears, Jeffrey2012, voiced concerns over Wynn's big bet on Macau:

This feverish pitch of ever record setting revenues coming from Macau will come to an end sooner rather than later. There is no way that Macau and China is going to continue their hot growth without some sort of issues. In fact, there are signs everywhere from the credit squeeze in Wenzhou to the plummeting stock market. Sooner, rather than later is this going to manifest in these wealthy high rollers who are probably living the high life on shadow banking loans.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

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Report this Comment On February 07, 2012, at 12:31 PM, cp757 wrote:

Brian I agree with what you are saying but this is more about WYNN loosing market share because they don't have any new projects coming on line for five years so they will have a decreasing market share. As far as your feeling China will slow I think this is a misunderstanding .China has an interest in building Macau to 100 billion a year destination and is a third of the way to that goal .China's casino tax is an indirect way for Beijing to capture some of the vast untaxed income in China, where only 3 percent of workers pay income tax and it is universally believed that many fortunes made in business escape the Chinese tax enforcement system, so this is a voluntary way to collect that tax.With the added rooms coming on line at Cotai Central owned by LVS, I believe the government will encourage more traffic to Macau .The United States does over 90 billion with a population of 312 million so with China at 4 times that at 1.3 billion the total potential is fantastic.

updated 2 days 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%

WYNN	$102.04		-1.19	-1.15%
Wynn Resorts, Limi…		CAPS Rating:

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2-Star Stocks Poised to Plunge: Wynn Resorts?

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Report this Comment On February 07, 2012, at 12:31 PM, cp757 wrote:

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