Wynn Resorts’ Stock Dips

Trading desks found that shares of Wynn Resorts Inc . (WYNN) were down on Thursday, and many knew exactly why. The company had experienced a delay in their desire to expand in Macau, and some saw this as a black mark against the company. Experts said that it looked as though Wynn was not set in its purpose, and therefore the company looked weak.

However, Wynn Resorts said that the only reason that they were experiencing a delay in their Macau expansion was that travel restrictions and increased competition had made it impossible for them to move forward at this time. However, they say that they are still planning on the expansion.

The expansion is going to add 25 new gaming tables, whereas before they were going to add 215; and instead of 925 slot machines, the company will now only be adding 200 slot machines. The change in plan caused their stock to fall almost 3%.

Per Goldman Sachs analyst Steven Kent, the casino is sending a mixed message. Between the delay, and the change in the amount of expansion, as well as an announced $1.2 billion share buyback authorization, the market isn’t sure what to think. He said that Wynn has said that they are going to expand, though, and he thinks that it will be done by the middle of 2008.

For now, however, the shares are lowered to $2.00 per share from $2.35 for 2007, to $2.50 per share from $2.70 in 2008, and to $3.00 per share from $3.05 for 2009 – because of the delay.



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