Thursday, 19 February 2009 23:00

Word of Wynn has Escaped

A full forensic report will be available to professional subscribers next week. Here is the latest retail/preview summary: pdf Updated Wynn Research Note 2009-02-15 09:36:21 266.62 Kb

Successful short seller has eyes for Wynn


A researcher and investor who foresaw the banking crisis, the residential and commercial real estate crashes and the downfall of General Growth Properties has set his sights on stock in Wynn Resorts Ltd. as a short-sell candidate.

Reggie Middleton, a Brooklyn-based investor who was months ahead of most analysts on numerous market-related events in the past two years, says in a nine-page report that Wynn Resorts stock is overvalued by about 26 to 65 percent.

Middleton decided to research Wynn because he spotted issues typical of companies heading for rough times.

"I look at companies with debt coming up or declining profits," Middleton said. "Wynn came up a winner, or a loser."

The report, published as proprietary research to subscribers to Middleton's BoomBustBlog Web site, cites $1 billion in debt coming due in June 2010.

It also notes falling room rates have increased the company's dependence on casino revenue, a notoriously volatile source even in good times.

It was published Sunday and was written when Wynn stock was trading at about $26 per share. The 52-week high was $119. It closed Thursday at $23. Stock in most major gambling companies has taken a beating in the past year.

Last modified on Thursday, 19 February 2009 23:00

5 comments

  • Comment Link Joe Kinde Saturday, 21 February 2009 12:15 posted by Joe Kinde

    wynn does not have $1 billion of debt coming due in 2010. that is factually incorrect. not sure if that's lvrj or bbb, who is skimping on the research. .

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  • Comment Link shaunsnoll Friday, 20 February 2009 14:15 posted by shaunsnoll

    i understand the logic, but legislation holding up asset prices only makes the correction longer and worse.

    bailouts = not good IMO

    http://4.bp.blogspot.com/_pMscxxELHEg/SZ4D6-N8_FI/AAAAAAAAElI/RWtvVSSBZdA/s1600-h/housing+bailout.jpg

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  • Comment Link JEFF Friday, 20 February 2009 12:01 posted by JEFF

    Homeowner Bailouts = Renters Getting Robbed! Homeowners think I should keep the fraudulent value of their homes propped up just because they were part of the greatest criminal conspiracy this country has ever seen. I didn't realize renters were treated as second class citizens in this country. You steal my money to give to people that work at Taco Bell, so they can keep living in a $300K house. Corrupt homeowners think that just because they WISH their house is worth so much - that makes it true. I hope the day comes when stupid publically school taught renters finally realize they are getting raped on a daily basis by these Yuppie Scumbag Trash & rise up & fight to take back this country from the criminals that run it!

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  • Comment Link shaunsnoll Friday, 20 February 2009 11:40 posted by shaunsnoll

    great to see you're finally getting the exposure you deserve!

    you'll have to throw a celebration when they finally put you bloomberg and/or CNBC!

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  • Comment Link NDbadger Friday, 20 February 2009 10:28 posted by NDbadger

    As word of your success gets out, this is going to happen more and more frequently. As some point, you'll be moving markets!

    I loved the idea but couldn't get the shares at Schwab. If people know of places that seem to have less problems getting the shares, please let me know.

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