June 3, 2005
SpeculatingStocks.com Stock Pick: Wynn Resorts Limited (WYNN)
Stock Price: $53.40 (long-term strong buy)
Wynn Resorts Limited was formed in October of 2002 under the direction of Stephen Wynn, former Chairman and CEO of Mirage Resorts. Mirage Resorts was purchased and merged into the MGM Mirage for a cost of $6.4 billion. Wynn Resorts Limited is based in Las Vegas and a developer and operator of high end hotels and casinos.
The company has been working on two major projects -- Wynn Las Vegas and Wynn Macau. Wynn Las Vegas just opened on April 28th of this year. Wynn Macau is still under construction, construction was started on June 27th of last year. At $2.7 billion the Wynn Las Vegas is the most expensive Hotel/Casino ever built. Wynn Macau is being built at a cost of $700 million.
We should have released WYNN as a stock pick three days ago, but we didn't pull the trigger. It appears WYNN has legs to run on. The company just reported that their trailing 34-day revenue beat expectations. A Prudential Equity analyst said the early results suggest annual revenue of $1.5 billion vs. an estimate of $925 million. This all needs to be priced into the stock.
Nevada is booming these days as the city has turned away from trying to become family friend, and instead focus on the adult playground it has always been. Poker is also booming and who wouldn't love to play at the tables in the new Wynn Las Vegas.
15% of the 48 million share float is being shorted.
SpeculatingStocks.com Target Price: We expect WYNN to reach $100 within the next 6-12 months.