Monday, August 6, 2007

Wynn in Macau!

Wynn Resorts hit it out of the park tonight (WYNN 107.39); it traded up 7 today and up another 10 to 118 in afterhours! I'm sure you'll get some analyst upgrades tomorrow because they'll use today's closing price of 107.39 for their research. The key to WYNN's success is their wonderful properties. Gambling's secret is knowing when to fold, or walk away. Gamblers play longer at Wynn, because the casinos are so spectacular. So the "hold" is larger. Estimates came in at .53, adjusted earnings came in at .92!

So how do you play Macau? Look at Melco (MPEL 12.69). It's a pure play on Macau, and Wynn's conference call will make the Macau bears shudder, so wall street will look for the "derivative" play.

They have a couple of casinos up and running now, and their Crown Macau is six -star gambling, with plenty of VIP play. They are also building the "City of Dreams" an underwater themed casino. Hyatt, Hard Rock and Cirque du Solei will be there in a spectacular fashion.

What we do know for tomorrow is this: the shorts in Macau-they'll be definitely under water.

And if you haven't looked at what's going on in Macau, start with the Wynn Macau link below.

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