Gaming Stocks Fall After Wynn Downgrade

21 Apr 2005

LAS VEGAS -- Merrill Lynch gaming analyst David Anders downgraded shares of Wynn Resorts Ltd. on Wednesday, sending most of the gaming sector downward in trading. Anders said the balance sheet of Wynn Resorts, which is opening the $2.7 billion Wynn Las Vegas next week, is "nearly exhausted."

Shares of Wynn Resorts, which have fallen more than 25 percent in the past month, slid 6.63 percent Wednesday to close at $55.32, down $3.93. More than 5.2 million shares of Wynn Resorts were traded during the session, almost five times the average daily volume.

Anders cut his rating on Wynn Resorts to "sell" from "neutral."'

"Given Wynn's nearly $5 billion in announced capital projects since its initial public offering, we believe the balance sheet is nearly exhausted," Anders wrote in a research note.

Wynn already plans another development, called Encore, on land adjacent to Wynn Las Vegas. The company in March expanded the scope of that project, bringing its estimated cost to $1.4 billion. Wynn has also bid on a potential casino project in Singapore, which is expected to cost about $1 billion.

Other gaming company stocks that fell Wednesday were Boyd Gaming, which closed at $50.62, down $2.48, or 4.6 percent; MGM Mirage, which closed at $67.10, down $1.78, or 2.58 percent; and Las Vegas Sands Corp., which closed at $37.87, down $1.93, or 4.85 percent.

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	Gaming Stocks Fall After Wynn Downgrade 21 Apr 2005 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> LAS VEGAS -- Merrill Lynch gaming analyst David Anders downgraded shares of Wynn Resorts Ltd. on Wednesday, sending most of the gaming sector downward in trading. Anders said the balance sheet of Wynn Resorts, which is opening the $2.7 billion Wynn Las Vegas next week, is "nearly exhausted." Shares of Wynn Resorts, which have fallen more than 25 percent in the past month, slid 6.63 percent Wednesday to close at $55.32, down $3.93. More than 5.2 million shares of Wynn Resorts were traded during the session, almost five times the average daily volume. Anders cut his rating on Wynn Resorts to "sell" from "neutral."' "Given Wynn's nearly $5 billion in announced capital projects since its initial public offering, we believe the balance sheet is nearly exhausted," Anders wrote in a research note. Wynn already plans another development, called Encore, on land adjacent to Wynn Las Vegas. The company in March expanded the scope of that project, bringing its estimated cost to $1.4 billion. Wynn has also bid on a potential casino project in Singapore, which is expected to cost about $1 billion. Other gaming company stocks that fell Wednesday were Boyd Gaming, which closed at $50.62, down $2.48, or 4.6 percent; MGM Mirage, which closed at $67.10, down $1.78, or 2.58 percent; and Las Vegas Sands Corp., which closed at $37.87, down $1.93, or 4.85 percent. Copyright GamingWire. All rights reserved.