Saturday, 14 February 2009 23:00

Updated Wynn Research Note Available

I have made an updated Wynn Research Note available, complete with valuation and macro scenario analysis. A verbose report will be available to Pro level and Institutional subscribers in a week or two.

pdf Updated Wynn Research Note 2009-02-15 09:36:21 266.62 Kb

Last modified on Saturday, 14 February 2009 23:00


  • Comment Link nealthom Wednesday, 25 February 2009 01:50 posted by nealthom

    Hey Reggie: I re-read your updated Wynn Report and you listed a "fair value" per share. After reading their earnings report, are you sticking to that value or think it should be higher or lower.

    aloha, neal

  • Comment Link YAYANKEE Tuesday, 24 February 2009 16:38 posted by YAYANKEE

    Reg nails it again

    Wynn Resorts-WYNN reports Q4 EPS 7c vs. consensus of 44c

    LOS ANGELES, Feb 24 (Reuters) - Wynn Resorts Ltd (WYNN:$25.80,00$2.52,0010.82%) on Tuesday said it swung to a loss in the fourth quarter as the spreading recession hurt business in Las Vegas and Macau and the company recorded a tax expense.
    Wynn Resorts (WYNN:$25.80,00$2.52,0010.82%) shares fell 10 percent.
    The company, created by casino mogul Steve Wynn, reported a net loss of $159.6 million, or $1.49 per share, compared with net income of $65.5 million, or 57 cents per share, a year earlier.
    Excluding one-time items such as the $98.8 million tax expense, Wynn Resorts (WYNN:$25.80,00$2.52,0010.82%) earned 13 cents a share in the quarter, which fell far short of the 41 cents a share forecast by analysts, according to Reuters Estimates.
    Despite the opening in late December of Encore, the company's second Las Vegas resort, Wynn Resorts' (WYNN:$25.80,00$2.52,0010.82%) net revenue fell 14 percent to $614.3 million.
    Analysts expected revenue of $696.4 million.
    Shares of Wynn Resorts (WYNN:$25.80,00$2.52,0010.82%) , which have fallen nearly 80 percent since August, rose 11 percent to close at $25.80 on Nasdaq, but were trading at $23.19 after-hours. (Reporting by Deena Beasley; Editing by Gary Hill)

  • Comment Link phirang Wednesday, 18 February 2009 16:55 posted by phirang

    apparently, talk is of ANOTHER porkulus package to reflate asset prices.

    i guess we're going to nuke the dollar to rally the equity markets?

  • Comment Link shaunsnoll Wednesday, 18 February 2009 14:24 posted by shaunsnoll

    IHG looks to have some negative shareholder equity if you look at their goodwill and intanible assets too. this whole sector is F**ked! i can't find even ONE company of all of them that looks like they will make it through!

  • Comment Link YAYANKEE Sunday, 15 February 2009 16:26 posted by YAYANKEE

    WASHINGTON (Dow Jones)--Lawmakers inserted a provision in final economic stimulus legislation that limits private equity firms' ability to benefit from a new tax break that helps companies trying to restructure their debt.
    The limitation was inserted during fast-track conference negotiations this week, at the behest of House lawmakers who wanted to ensure that the benefits are funneled to firms engaged in a trade or business, rather than private equity partners or other investors.
    Companies that are controlled by private equity firms will still benefit from the debt restructuring tax break, to the extent that their debt was issued by the operating company and not by the fund.
    Harrah's Entertainment, controlled by private equity firms Apollo Management LP and TPG Capital, was one of the leading firms seeking relief from the tax consequences of debt buy-backs. A congressional aide said Harrah's will benefit under the bill in its final form.
    Senate Majority Leader Harry Reid, D-Nev., and Sen. John Ensign, R-Nev., were instrumental in ushering that tax break through, which was also sought by other casino operators including MGM Mirage (MGM:$5.24,00$-0.63,00-10.73%) and Wynn Resorts (WYNN:$26.04,00$-0.67,00-2.51%) .
    The debt repurchase provision was one of the most heavily lobbied proposals by U.S. corporations, many of which have debt that is trading below the value on the note, and are seeking to buy back debt at market rates. Telecommunications firms and homebuilders would benefit, as would many other sectors.
    The final stimulus bill ensures that any income that corporations realize because of debt amounts that are forgiven won't be taxed until 2014. The income will then be recognized, and tax paid, over five years.
    In addition to corporations, partnerships and other pass-through entities can qualify for deferral of the tax. But the bill says that the debt will only qualify if it was issued "in connection with the conduct of a trade or business by such person." That effectively bars debt that is issued by a private equity partnership from qualifying for the tax break.
    House Democrats, many of whom have been critical of the private equity industry, initially wanted stricter limitations in the bill, congressional aides and lobbyists said.
    For example, the House had argued for narrowing eligibility, aside from C- corporations, to debt issued in connection with an "active" trade or business. But that language would have hurt real estate partnerships, and it wasn't included in the final bill.
    Ed Ptaszek, a partner at the law firm of Baker & Hostetler LLP, said the practical impact of the limitation on private equity firms may be small. That is because the debt that private equity firms use to acquire companies is typically "bootstrapped." That is, borrowing is done by the company being acquired, and equity from the PE partnership helps complete the deal.
    One Senate aide involved in discussions echoed that view. "We are comfortable that the final provision is going to help a lot of companies to de-leverage, and it's not going to be punitive to anybody," the aide said.
    Ptazek said private equity firms tend to avoid holding debt at the fund level, he said, because to do so would trigger "unrelated business income tax" on their tax-exempt investors such as pension funds.
    The final agreement on deferral of debt forgiveness income, while helpful, was less than what companies had sought. They wanted tax to be suspended all together for two years on canceled debt. Under the final legislation, companies still have to pay taxes on amounts forgiven, but they have longer to pay it.
    The income deferral rule applies to debt repurchased in 2009 and 2010. The Joint Committee on Taxation said the tax delay will cost the government $1.6 billion over 10 years.
    -By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@

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