Believes that once pandemic eases gaming industry will rebound strong
By JOSH RESNEK
Wynn Resorts Chief Operating Officer Matt Maddox believes that when the worst has passed with the virus, and when the vaccine has been distributed and millions inoculated, that the casino and hotel business will return, and powerfully.
Maddox is an industry legend and leader, who learned nearly all his business skills from his former boss and mentor of 20 years, the founder of the company bearing his name, Steve Wynn.
In a wide variety of interviews given, Maddox recently said that pent up demand will cause Wynn Resorts numbers to soar when all is said and done with the virus.
He understands this like everyone else dealing with the results of the virus; a mountain of restrictions and a travel and convention industry that has gone bust.
“Life won’t always be this way,” he repeats over and over.
In many comments made to industry leaders and Wall Street reporters and to casino analysts, Maddox remains firm in the belief that when the worst has passed, “Watch out!”
Maddox knows of what he speaks.
Wynn Resorts stock price is an indication that many investors believe in gaming and in folks like Maddox.
Despite Macau’s gaming figures being down 70% from last year, despite Encore Hotel being closed, and the casino operating with crippling restrictions; despite the Wynn and Encore properties in Las Vegas closed during the week because so few visitors are traveling to Sin
City, Wynn stock continues to soar. Earlier this week Wynn’s stock price hovered in the $112 area, a solid step up from its recent low of $75.
In fact, the stock has been swinging between $75 and $125 consistently for the past six months.
The 52-week high for the stock is $153.
The 52-week low, $35.
What a buy it was at $35!
The company’s market cap stood at $12.02 billion Tuesday morning.
By comparison, Las Vegas Sands, owned by the billionaire Sheldon Adelson, showed a market cap of $44.4 billion on Tuesday morning.
The stock has swung between $35 a share to $73 a share in the past 52 weeks.
Stock price Tuesday – $58.
Adelson’s company is almost four times the size of Wynn Resorts, and yet Wynn Resorts stock volatility dwarfs Las Vegas Sands.
Analysts and institutional investors continue to trade Wynn Re- sorts stock. Most tend to hold onto it and grow their positions, despite the horrific down market.
In a Wall Street world run in large part on speculation and confidence, Wynn Resorts stands out as one of the most dynamic movers in the casino and hotel industry.
Encore’s difficulties right now are a disaster – but that disaster is not going to last forever no matter how much the world changes as a result of the pandemic.
At some point, the hotel will re-open and crowded, and the casino will be busy.
That time isn’t now – but it is coming.