By Josh Resnek
Since Wynn Resorts took a major stake in Everett, the Leader Herald has followed the value of its stock.
The past year has been a disaster for stock investors who believe in the company.
Wynn Resorts stock this week is way down from loftier heights, as are most stocks during this post-pandemic era when interest rates are rising with inflation and the economy of the world is going through a dramatic moment.
Last June, Wynn Resorts stock price stood at $125.00.
This June, the price has bombed to $57.00.
Wynn Resorts is a cash rich company with financial resources quite unlike many other corporations.
For instance, the casino and hotel in Everett has been grossing more than $60 million a month for the past four months.
With a cash flow like that, almost anything is possible for the company which is continuing to expand its influence and economic impact in the immediate area on lower Broadway where it is located.
The stock price may be way down but the company’s ability to generate enormous amounts of cash from its locations in Las Vegas and in Macao is unusually potent. It serves as an antidote to the weak stock price.
However, with the stock at $57.00 a share, the value of the company overall has declined dramatically.
At that price the market cap of the stock, that is, the value of all its shares is $6.6 billion.
When the shares were at a high in 2018 and 2019 and were trading in the $150 per share territory, the company’s total value was estimated at about $11 billion.
A $5 billion loss in market cap would be disastrous for most companies but not for Wynn Resorts.
As we reported two months ago, the company recently sold the land for almost several billion dollars to an investment firm.
The casino and hotel are now paying rent – which is the type of financial moves major casino companies are interested in achieving.
With the stock market heading downward, and rather dramatically this week, Wynn Resorts stock is heading in the same direction.
It is part of a natural progression when it comes to the speculative stock market.
Traded on the NASDQ, Wynn Resorts stock will likely drop further if the general market heads in that direction.
But its earnings potential is so great, and so powerful, that the lower market cap doesn’t tend to matter as much…unless the company was put up for sale.
Right now, it is not believed Wynn Resorts is up for sale.