Stockchase Opinions

Pete Najarian Wynne Resorts Ltd. WYNN-Q DON'T BUY Apr 13, 2022

The issue all along has been Macau. Las Vegas is operating fine with Covid under control. But China has a zero tolerance policy towards Covid and this will make Macau uncertain. When will Macau really reopen and generate real revenues? He used to own this, but hesitates now.
$74.220

Stock price when the opinion was issued

entertainment services
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

RISKY
Allan Tong’s Discover Picks Consider Wynn Resorts. Year-to-date, WYNN stock has outpaced competitors with its shares breaking even in 2022 through early December while MGM stock has sunk 15% and Caesars 46%. Pretty good, right? However, in early November WYNN stock reported a Q3 revenue loss of $1.20 which was much higher than the street’s $1.03 prediction. Why? That Q3 included a two-week closure of their Macau casinos because of an increase in Covid cases. The company’s Las Vegas and Boston operations helped cushion the turbulence, but the coming winter (a period when Covid cases typically rise) looks uncertain. Read Between Safety and Risk: 3 Safe and Gambling Stocks for our full analysis.
BUY

Wynne enjoys a core group on consumers who will go to their casinos and any spending online in sports betting adds to that.

BUY

Their Macau and Las Vegas operations are killing it.

SELL ON STRENGTH

Took profits, up 60%. Simply profit-taking. The company is doing a great job. Covid in China is worry, so she's being cautious. She may buy this again.

STRONG BUY

Their quarter 2 weeks ago was unbelievable! And yet, shares went down after that.

BUY ON WEAKNESS

Down 14% this month, because of concerns over China. Remember, there was very little activity in Macau because of Covid, so things can't get worse than that. Sure, China's general economic weakness could have an effect on Wynn Macau. Numbers show that Macau is bouncing back. WYNN just reported a revenue beat and huge earnings beat.

BUY

Is undervalued and so it Caesars. He's frustrated with this space, because Las Vegas has been going gangbusters where convention attendance is way up over the past year. These stocks haven't gotten credit for their performance.

BUY

May's data is up across the board: revenue per room is up 11% YOY, convention attendance 2%, hotel occupancy 2%, plus Wynn buys back shares. He expects these good numbers to continue. Also, they're investing in Dubai which will eventually increase revenues. Be patient.

BUY

Vegas tourism is white hot. Revenue per room was up 11% in May YOY, convention attendance up 2%, and visitors up 5%. MGM has over half its business from Vegas. But he doesn't like MGM's regional business and those patrons are struggling from higher inflation and interest rates. He Likes MGM, but prefers Wynne because it has more Vegas exposure. But Vegas' boom isn't pushing up Vegas stocks, which is frustrating. Frankly, the market is getting it wrong. When Wynne reports, their strong Macau business will shine.

BUY ON WEAKNESS

They have a new UAE project. Their last report was shockingly good, with $1.84 billion in revenues in Q4 2024, but shares have pulled back with the market over fears about the consumer.