Wall Street Likes Wynn Resorts

6 Apr 2005

NEW YORK – As reported by CNN: "Wynn Resorts, the publicly traded casino company run by Vegas legend Steve Wynn, has soared nearly 400 percent since it started trading in October 2002...and the company's first casino hasn't even opened yet.

"Wynn Las Vegas is set to open its doors on April 28. But investors have so far been willing to bet on the reputation of Steve Wynn, the brainchild behind several successful casinos in Sin City, including the Golden Nugget, Mirage and Bellagio. (Wynn's former company, Mirage Resorts, was sold to MGM Grand in 2001 and is now known as MGM Mirage.)

"…But is this optimism already factored into the stock price? Shares trade at about 157 times 2005 earnings estimates and 58 times 2006 projections for 2006. At those high-roller valuations, investors must be counting on lots of millionaires throwing away their disposable income at the baccarat tables.

"…Still, others think the timing might be right. For one thing, the stock has already pulled back a bit, down about 13 percent since early March because of concern that rising oil prices could hurt tourism and because some investors may be "selling on the news" of the casino's opening.

"…Analysts expect Wynn Resorts to generate $722 million in revenue this year and a profit of 41 cents a share, according to estimates from Thomson/First Call. And next year, Wall Street thinks the company will really hit the jackpot: consensus estimates call for a sales increase of 85 percent to $1.34 billion and a 170 percent surge in earnings to $1.11 per share…"

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	Wall Street Likes Wynn Resorts 6 Apr 2005 NEW YORK – As reported by CNN: "Wynn Resorts, the publicly traded casino company run by Vegas legend Steve Wynn, has soared nearly 400 percent since it started trading in October 2002...and the company's first casino hasn't even opened yet. "Wynn Las Vegas is set to open its doors on April 28. But investors have so far been willing to bet on the reputation of Steve Wynn, the brainchild behind several successful casinos in Sin City, including the Golden Nugget, Mirage and Bellagio. (Wynn's former company, Mirage Resorts, was sold to MGM Grand in 2001 and is now known as MGM Mirage.) "…But is this optimism already factored into the stock price? Shares trade at about 157 times 2005 earnings estimates and 58 times 2006 projections for 2006. At those high-roller valuations, investors must be counting on lots of millionaires throwing away their disposable income at the baccarat tables. "…Still, others think the timing might be right. For one thing, the stock has already pulled back a bit, down about 13 percent since early March because of concern that rising oil prices could hurt tourism and because some investors may be "selling on the news" of the casino's opening. "…Analysts expect Wynn Resorts to generate $722 million in revenue this year and a profit of 41 cents a share, according to estimates from Thomson/First Call. And next year, Wall Street thinks the company will really hit the jackpot: consensus estimates call for a sales increase of 85 percent to $1.34 billion and a 170 percent surge in earnings to $1.11 per share…"