Saturday, July 14, 2012

"With the Dow Jones Industrial Average ending the week at 12,777 like a slot machine that hit on 777, I took that as an omen that I should write about a gambling stock"

Dow Jones Industrial Average 12,777 (UP)  Week ending 07-13-2012 

Well, when the Dow Jones Industrial Averages last week ended up landing on "777", it was like the Sun lining up at StoneHenge in June for the Summer Solstice and Indiana Jones with his headpiece to the staff of Ra, locating the Ark of the Covenent, it was in fact a message which came directly to me. I needed to write this week about the "best Casino stock" with the "best potential fundamentals".

What with Jamie Dimon and his band of JP Morgan synthetic traders, and Bruno Michel Iksil -- nicknamed "the London Whale", this week announcing they lost a cool 5.8 Billion $$ at the Global trading casino known as derivatives trading, it just seemed the right thing to do to talk about a casino stock and taking a position on the "house" side of the gambling equation.

So who better to look at then Wynn Resorts Ltd. (symbol WYNN,$96.22). It appears that because the world is all sad here about Europe and various economies slowing down, that you can pick up this "best of the best" stock here at a real bargain price.  The stock has traded as high as $ 172.58.  It currently has a PEG ratio of 0.71 which is an extreme bargain basement price to earnings growth

So let's look at some other numbers and make you the dealer at the table. WYNN is projecting 2012 yearly earnings of $5.80 per share and 2013 earnings of $6.84 per share.WYNN has 5 year annual sales growth of 19.22%. The five year annual earnings growth is running around 22.61%. The Return on Equity on this stock is a cool 29.47%. That is because this company is run by one of the best businessmen in the United States, Steve Wynn. The outspoken endorser of everything that is good and American and Republican,  is also a champion of running a business correctly.  

The stock also kicks in a dividend yield of 2.08% percent, so you get a paid a little while you wait. Amazingly you can buy this stock this year with a Total Return of down -38%, so there is plenty of margin for safety here. The 3 year Total return on the stock, even being down this year, is up 217% overall.  As far of holders of the stock, the very successful -  Ivy Asset Strategy funds owns 5+ percent of it , and have owned it as a long term investment. 

Goldman Sachs analyst Steven Kent thinks the stock could have a 30% upside from here. He has a target price of $136.00.  This is a great long term purchase to make right here on this under valued casino and resorts stock. The stock has been under pressure recently because Macau Wynn casino revenue estimates have been too lofty and Wynn's wife Elaine has been offering shares for sale.

So to sum up, this stock market here has been acting like the actress Zooey Deschannel in the movie "500 days of Summer", first flirting with you then running away.  Zoe's picture on the site will bring lots of extra hits to the blog!

 Hopefully this market will head to Shoo-Shoo-Shoo, Shoo-Shoo-Shoo, Shoo-Shoo-Shoo-Shoo-Shoo - Sugar Town and make you some decent money!

Adios Amigos, 



  1. This is an interesting information..... Keep updating your blog. Thanks a lot for the share.... Thanks!

  2. Thank you Juli GS for your comments. Do you have any long term gaming stocks that you like as investments here? Any new Gambling technologies or On-Line Gambling companies I should know about?