Back on September 14th I told you that Wynn was a buy. The stock was at $65 then and is now trading at $69. I also told you that if the stock dropped below the $55 mark it would be huge buying opportunity, which you had near the end of October when the stock dropped to the $53-$54 range for just a few days.
So do I still think Wynn is a buy? Wynn is even more of a buy now than it was when I first recommended it. The company has a lot of cash in store and very little debt, especially relative to its casino peers LVS and MGM. China Macau casinos have stabilized and are helping Wynn turn up profit. Even Las Vegas casinos are stabilizing, and will begin to show some growth possibly in the next year, which is something to look forward to in 2010 that could send the tock higher.
But right now there's even more good news. Wynn Resorts is declaring a special and massive $4 dividend with ex dividend date Nov 17 2009. At the current stock price of $69, that's a 5.7% yield just for holding the stock at the close on November 16th. The company also said it would start paying a $0.20 dividend beginning in 2010. They simply love shareholders.
But will the stock tank after the dividend has been paid out? Wynn's technicals are also looking great right now, which I think can send the stock soaring further. Wynn was upgraded last week to a Buy by Deutche Bank, which a target price of $80. Personally, this target is a bit low. Take a look at the chart below. Wynn has once again just broken through its 50 day moving average. If you look back, each time it has done so, the stock has moved up $20-$30. I can see Wynn between the $90-$100 by year end.
So do I still think Wynn is a buy? Wynn is even more of a buy now than it was when I first recommended it. The company has a lot of cash in store and very little debt, especially relative to its casino peers LVS and MGM. China Macau casinos have stabilized and are helping Wynn turn up profit. Even Las Vegas casinos are stabilizing, and will begin to show some growth possibly in the next year, which is something to look forward to in 2010 that could send the tock higher.
But right now there's even more good news. Wynn Resorts is declaring a special and massive $4 dividend with ex dividend date Nov 17 2009. At the current stock price of $69, that's a 5.7% yield just for holding the stock at the close on November 16th. The company also said it would start paying a $0.20 dividend beginning in 2010. They simply love shareholders.
But will the stock tank after the dividend has been paid out? Wynn's technicals are also looking great right now, which I think can send the stock soaring further. Wynn was upgraded last week to a Buy by Deutche Bank, which a target price of $80. Personally, this target is a bit low. Take a look at the chart below. Wynn has once again just broken through its 50 day moving average. If you look back, each time it has done so, the stock has moved up $20-$30. I can see Wynn between the $90-$100 by year end.
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