Casino stocks open firmer on analyst comments. Morgan Stanley says Las Vegas Sands (LVS) is a buying opportunity after recent declines. Shares have fallen 18% from Dec. 1 through December 15 Meanwhile, Wynn Resorts (WYNN) is higher on an upgrade to "overweight" from "neutral" at JP Morgan. Source: MidnightTrader
WYNN Resorts issued a $1.6 billion IPO of its Macau operations, to be listed on the Hong Kong Stock Exchange. Despite visa restrictions in place on travel to Macau from mainland China, WYNN Macau had 20.6% growth in its Adjusted Property EBITDA between 3Q09 and 3Q08.
WYNN will offer 7 million shares of common stock to the public and is granting Deutsche Bank the option to purchase 1.05 million additional shares. The company intends to use the new capital for general corporate purposes, including repayment of debt.
Wynn says it needs to cut salaries of Las Vegas workers, reduce work weeks for hourly employees, eliminate 2009 bonus accruals, and temporarily stop matching 401(k) contributions. The company expects to save about $75 million to $100 million a year.
Steve Wynn, billionaire founder-CEO of Wynn Resorts, took home $11.2M in 2007. WYNN stock rose 19.5 percent on the year, but net profit fell as the company expanded its operations in both Las Vegas and Macau. Wynn is the company's second-largest stockholder as well, and his 21.1 percent stake in the company is worth $2.7B.
Steve Wynn, chief executive of Wynn Resorts, gave mixed news in the company's fourth quarter '07 earnings report. On the plus side, Macau profits drove fourth quarter profits. But Wynn expects "general weakness" in the Las Vegas resort and casino industry throughout '08, citing ongoing economic troubles in the U.S.A. WYNN, and other Vegas stocks, fell as a result of the boss's forecast.
CIBC gives Wynn Resorts a rating of “underperform” and raises the target price from $83 to $90.