
NASDAQ:WYNN
(A Top Pick Jan 27/15. Down 58.01%.) This plummeted right after he had picked it. It has come back recently. The only thing that is holding this up is 2 separate purchases by Steve Wynn himself. This stock is going to have all of the negative connotations of China and a collapsing gambling scenario and high debt.
70% of their revenue is from Macau. Macau, for the 1st time, saw a pretty dramatic drop in its gaming metrics, and the shares took a hit. Macau does about $44 billion in revenue. It is a 5 hour flight away from 2 billion people. There is a lot of regulatory scrutiny around the name. Gaming revenues started turning round in the 2nd half and he decided to start accumulating this because of valuation and a 4.5% yield. They have a history of doling out special dividends. Dividend of 3.87%.
Have 3 casinos stocks Las Vegas Sands (LVS-N), Wynn Resorts (WYNN-Q) and Melco Crown (MPEL-Q). Should I hold them over the summer? Has always liked casino stocks. Finds the business model and the cash they are making fascinating. A basket of these is good. Be aware that this is awfully volatile. He thinks they go up from here. Another interesting name is Galaxy Entertainment (GXYEF-OTC).
This is a high beta stock. This is all about Asia and more particularly China. 72% of revenues today come from Asia. You could use this as a trading stock as it has that volatility. From a long-term growth rate point of view, this is probably one of the strongest growth companies out there. Expected growth rate of 15%.
Suffered a big decline. Part of it s due to the big drop in gambling in China. A lot has to do with declining visits from mainland Chinese. There is lots of headwind.