Figures are bad but it might be a good time to buy stock
By JOSH RESNEK
For those of you out there who are stock investors – and there are thousands of those in the city of Everett – you should pay close attention to Wynn Resorts stock’s ups and downs.
During the past six months, the stock has moved between $68 to $75 dollars a share.
At $68, there is almost the guarantee at current business income figures, the stock will rise to at least $75.
Getting over $75 has been difficult although that price level has been pierced several times during the past six months – but never for long.
The virus has destroyed Wynn’s business in Macau.
The business has come back a bit recently but remains about 80% off from last year’s figures.
Macau is Wynn’s cash cow. Seventy-five percent of its business is generated there.
The remaining 25 percent is generated in Las Vegas and Boston (Everett).
In Las Vegas, business is so slow Wynn and its sister casinos there have cut hours of operation to meet the harsh reality of dismal earnings – and in this – I am not talking about profits. General income is way, way down as travel is way, way down, as conventions are almost non-existent along with mass type crowd magnets like entertainers and shows.
No one is coming as they used to. The large gatherings aren’t allowed.
In fact, with the COVID rising so dramatically all over the nation, the winter season, it would appear, is about to be lost.
Only a vaccine can allow the casino industry to turn back to profitability and big numbers.
The advantage of owning a stake in casino stock is that when the crowds are present, casinos and their hotels and restaurants are all money machines, huge generators of cash and profits, and Wynn Resorts is chief among them.
During the closure from March to September, Wynn stock held up because it remained a good buy – even when the casinos are closed or are half-opened!
Thousands were laid off to match demand with the need for employees to meet it. This allowed for a better bottom line even in the downtime.
With relatively low debt, gorgeous and modern locations, and a great reputation for providing visitors with a great time, Wynn Resorts is poised for a takeoff.
Of all the stocks to benefit from a vaccine being approved and distributed and traveling and vacation habits normalizing, casino stocks like Wynn’s will soar.
They will soar because when they can finally do business as they are allowed, they will generate so much money that they won’t be able to count it. It will have to be weighed.
Wynn Resorts at about $75 and a market cap at $8.7 billion could easily rise by as much as 40 to 50 points in a matter of two to three weeks if a recovery takes place.
Long term investors should put some Wynn Resorts stock in their portfolios.