WYNN—Lose (WYNN)

It doesn’t matter what happens on a single day of trading.

What’s more important is the overall trading pattern.

Full stop.

Wynn Resorts popped higher yesterday on no good news, and with unimpressive volume.

And that means just one thing—she still ain’t no good.

As you know, WYNN is about gambling.

Little else.

And as you may also know, every gambler eventually ends up broke.

And alone…

So let’s take a quick look at this overhyped, worthless piece of glitz-biz.

Fundamentals

• To begin, P/E is non-existent.
• Moving right along—Dividend Yield is also… non-existent.
• As for Price to Book—you guessed it: non-existent. The company has no break-up value because assets are exceeded by liabilities.

Oh, well.

What about earnings and sales?

• Well, over the last five years EPS SHRUNK by 24.10% per year, and…
• Sales SHRUNK by 9.20% per year.

Oh, well.

• Now get this—analyst consensus for the NEXT five years’ EPS are…well, non-existent. That is, they simply can’t see a positive earnings prospect on the horizon.

So…

Why in the world would anyone hang on to this stack of bricks?

Now look at the chart—

May it be His will.

!שכן יהי רצון

Many happy returns!

Matt McAbby

Follow @HughLOHaynew