EVERETT THE KEY
By Josh Resnek
Everett doesn’t matter to the investment world very much but in the case of Wynn Resorts, Everett very likely holds the key to the short term future price for its stock.
This time last year, Wynn stock was in the $190 region with expectations by major brokerage houses that it could soar into the mid $200’s.
This was before Steve Wynn was found out and revealed to the world as a sexual predator – or at least this is what most of the evidence gathered by the Wall Street Journal revealed after their investigation was published into his sexual harassment and paternity suit issues.
Wynn had to resign, to sell his stock, to cut ties as completely as possible with the company he founded.
At first, the stock took a dive, about 25 points.
Then it came back.
Steadily, during the past six months, the price for Wynn Resorts has been sinking.
During the past year, the stock had a 52 week high of $203 and a low of $125.
As of Tuesday, October 2, Wynn stock was being traded $125 a share.
It has now sunk to the point where some brokerage houses are suggesting it is no longer a buy but rather, a sell.
While many analysts consider Macau and Wynn’s stake there, and the Las Vegas interests, as Wynn Resorts beginning and end of value, the Boston/ Everett property hanging in the balance, blowing in the wind, is the single biggest element to consider in the short term future price of the stock.
If the license is pulled by the Massachusetts Gaming Commission, then Wynn Resorts has a $2.5 billion hole to ll.
According to an investor we have spoken with familiar with the gaming industry here and in Las Vegas, if the license is pulled, Wynn Resorts will be forced to sell the property and get $1.5 billion for their investment – and the dream is gone.
The stock will tank anew.
If you play the market, betting on Wynn Resorts going down might turn out to be a great bet in the short term.
If Wynn gets off with say a $50 million fine but keeps the license, Wall Street will be displeased that the $50 million