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Stock Review of Wynn Resorts

By Edited Jun 21, 2015 0 0

The stock market allows people and corporations to invest in companies from all around the world. Many people invest their money in the stock market to make money. Historically, the stock market has been one of the best places to invest money. While the market is very volatile, over the long term the stock market can offer great returns for investors. In this article I will be reviewing a company that is currently listed on the New York Stock Exchange called Wynn Resorts Limited.

Overview

Wynn Resorts is a developer, owner and operator of destination casino resorts.  The company owns and runs  some of the top casinos in the world including the Wynn in Las Vegas and the Wynn In Macau, a region of China. 

      The casino industry continues to see profits and is booming; thus, it appears less affected by recessions and slowdowns unlike other industries. Wynn Resorts is one of the top casino companies; it has a market cap of over 10 billion which makes it a very large company. It is  public and has shares available  on the NYSE.

 

Review of Stock

Wynn Resorts stock(WYNN) is  popular. The stock  dividend yields 2% and earns over $4 dollars a share. The company has a high P/E ratio of 21 but this number is similar to the P/E ratio of its competitors. I personally consider Wynn a very speculative stock because they have invested heavily in the Macau region of China which is currently experiencing problems.The company is over-leveraged with a debt to equity ratio of 154.03 and the company is very volatile, it has a beta of 2.43. 

Despite this I recommend buying Wynn. Why? They recently got approval from the Chinese government to build a huge Casino in the crowded Macau region.  In May they broke ground on a 51 acre plot in the Macau region. The resort is expected to be completed in 2016, and will cost an estimated $4 billion dollars. Wynn issued a large amount of bonds to pay for this casino which is the reason for their high debt to equity ratio. The Macau region of China is a very profitable place for casino owners. The casinos in the region earn over 5 times as much as they earn on the Las Vegas strip, and the area is one of the fastest growing casino destinations in the world. If Wynn can build this casino and make it a success, they can earn billions of dollars. This is a huge gamble though and there is a chance that the casino will be a failure.

I have faith that Steve Wynn, the president and CEO of Wynn Resorts, will make the Wynn resort in Macau a success and that is why I am buying shares of Wynn and recommend you to do the same. This is a great long term play. When the Wynn in Macau opens in a few years, investors could stand to earn a lot of money. This is why Wynn is a great long term play and it is currently priced at around $100 dollars which is a great price to buy shares now. Do not wait and miss out on an opportunity to buy shares of the Wynn resorts at a great price.

Wynn Resorts Logo

Wynn Resorts Logo
Credit: http://www.scripophily.com/webcart/vigs/wynnvig.jpg
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