Wynn Resorts (WYNN) Stock | Not Winning in Macau

Wynn Resorts Logo (PRNewsFoto/Wynn Resorts)

Wynn Resorts Ltd. (NASDAQ: WYNN)


Wynn Resorts once again has fallen to a new 52 week low, in fact this time, a five year low. Last week, the stock dropped Under $60 on higher than average volume and closed near the bottom end of its trading range due to a revision from Fitch Ratings on its Macau gaming growth. The forecast at Fitch is now expecting revenue to fall by 34% for 2015, versus a 28% decline as originally forecasted. With the recent negative news the stock gapped down today out of the gates and continued to sell off during the trading session. TheStreet

On Wednesday, September 23rd, Harry Curtis, of Nomura Securities, spoke with Melissa Lee of CNBC and when asked about Casinos in Macau Curtis said, “The VIP Revenue stream is never coming back, not in my lifetime.” CNBC

Wynn is expected to release its next earnings October 26-30, 2015.


WYNN Technical Analysis

wynn-6 month chart

This is a six month daily chart, and it is frightening with the stock price having dropped more than 50% in the past 6 months to its current level of below $60. The indicators shown are the 20 SMA, 50 SMA, 200 SMA, and 8 EMA (also known as the T-line). WYNN is currently trading below all of these daily moving averages. Despite the downtrend, occasionally the stock will bounce back after a sharp decline as seen on April 30th, June 2nd, June 30th, and September 14th, presenting an opportunity profit from the long side during the overall downtrend.

wynn-10 yr chart

This is a monthly chart of the last 10 years for WYNN. A long term chart of WYNN is not easy on the eye. The stock is down an alarming 76% off its high of 249.31 from March of 2014. At its current level below $60, the company has not traded this low since February of 2010. The indicators shown are the 20 SMA, 50 SMA, 200 SMA, and 8 EMA (also known as the T-line). The stock is currently trading below all of these monthly moving averages. The stock has not had a green monthly candle since October 2014. In June and July 2015 it looked like WYNN had found some support in the mid 90 range area based on its July 2012 levels but then crashed through this potential support in August. From here there is potential support at the October 2009 consolidation level of 54.22, and below that next support is 35.30.


About Wynn Resorts Ltd.

Wynn Resorts, Limited is a developer, owner and operator of destination casino resorts which integrate accommodations and amenities, including fine dining, premium retail offerings, distinctive entertainment and convention facilities. The Company owns 72% of Wynn Macau, Limited, which operates an integrated resort in the Macau Special Administrative Region of the People’s Republic of China (Macau). Wynn Resorts also owns 100% of and operates an integrated resort in Las Vegas, Nevada. The company operates through two segments: Macau Operations, which includes Wynn Macau and Encore at Wynn Maca, and Las Vegas Operations, which includes Wynn Las Vegas and Encore at Wynn Las Vegas. Its Macau Operations features approximately 284,000 square feet of casino space with 498 table games and 625 slot machines, two hotel towers and others. Its Las Vegas Operations features approximately 186,000 square feet of casino space with 232 table games, 1,849 slot machines, two hotel towers and others. Google Finance