Wynn resorts will fail

BaseballGuy · Apr 13, 2005

Mark my words..

Steve went a bit too far with this place. Of course people were saying that with the bellagio, but The Wynn is just plain ugly! Overpriced too. A regular room goes for 449.00 on a fri night.

Wynn has gone overboard. This place will never be able to fufill it's loan/bond obligations.

Adding: The Lcd tv's in every room seems cool. However, I could buy my own 20" lcd for the cost of one night.

Roxygurl · Apr 13, 2005

nothing steve wynn does fails.if anything it will hurt treasure island,the venetian and mirage.its an unusual structure but not ugly. theres plenty of room for a new hotel and business too.i wish him luck. maybe TI will lower thier prices so i can stay a week

arty: woooo hoooo~RG

BaseballGuy · Apr 13, 2005

roxygurl said:
nothing steve wynn does fails.if anything it will hurt treasure island,the venetian and mirage.its an unusual structure but not ugly. theres plenty of room for a new hotel and business too.i wish him luck. maybe TI will lower thier prices so i can stay a weekarty: woooo hoooo~RG

While he is a successful buisness man I still beg to differ on the upcoming success of his new venture.

When the bellagio and other wynn properties opened the economy was booming. The economy at present is hardly booming. I seriously doubt many people will pay 449.00 a night for a basic room when they can stay at the bellagio for half that.

Times change. Perhaps 5-7 years ago this would have been a good idea.

Think about it..

THE SHRINK · Apr 13, 2005

BaseballGuy,

Although all that glitters is not gol, I do have more confidence in Wynn than you do...

As always, time will tell...

THE SHRINK

WildBill · Apr 13, 2005

Will the place go under? Hell no. Will the place disappoint WYNN shareholders? Very likely. You have good points about how he goes overboard to the point it doesn't make sense. That is why they bought Mirage Resorts out from under him. He spent too much on assets that don't bring in money, like the art collection. He will get his customers and make profits, but he won't be as profitable as other publicly held casino companies. Won't even be close. Harrahs and Stations are the smartest run casino companies and neither of them would ever think of taking one of Steve's prime customers from him. Not enough money in it, too much risk.

BaseballGuy · Apr 13, 2005

WildBill said:
Will the place go under? Hell no. Will the place disappoint WYNN shareholders? Very likely. You have good points about how he goes overboard to the point it doesn't make sense. That is why they bought Mirage Resorts out from under him. He spent too much on assets that don't bring in money, like the art collection. He will get his customers and make profits, but he won't be as profitable as other publicly held casino companies. Won't even be close. Harrahs and Stations are the smartest run casino companies and neither of them would ever think of taking one of Steve's prime customers from him. Not enough money in it, too much risk.

Agree. However, comparing "The Wynn" to his past resorts is doing a grave injustice to those "themed" properties.

The Wynn has no theme whatsoever. Ok, well I guess it could have the,
overpriced place for idiots who don't know how to manage their finances theme.

Bellagio, while expensive has a theme. Mirage, has a theme like all of his past properties. This place will fail miserably. Of course it won't go under because of all the money spent. However, I bet it changes ownership right before the annual profits report. The construction of this resort just happened to occur during the worst U.S economy in the last 15 years.

Perhaps bad timing, or just plain cockyness.

Dawoofdaddy · Apr 13, 2005

Build it and they will come......he has been doubted by many.

:chest:

WildBill · Apr 13, 2005

BaseballGuy said:
However, I bet it changes ownership right before the annual profits report.

Next to impossible actually. Steve doesn't want to lose another casino so he sold off only a relatively small piece of it. He and his Japanese partner own the controlling piece so no way it changes ownership. The first year won't be a problem, he will get enough people to come that it will be fairly profitable. Look at years 3 and 4 for where shareholders start asking the tougher questions like why do you bring in as much revenue as xxx casino and yet get only half the earnings out of it? Or why spend $2.5 billion for a casino that generates $200 million in cash flow? Those are the things to worry about for investors.

TescoVee · Apr 13, 2005

do you Vegas guys have any insight to the Bungalow Residence at Hard Rock? they keep sending snail mail to everyone at my work to purchase them. They actually send really expensive packaging. Any value besides looking at strippers sunbathing by the pool?

ChuckSims · Apr 13, 2005

Wynn will be a success. I like the way it looks from the outside. I am sure the inside will be awesome. The sportsbook will be the best on the strip. The people will come. I am amazed at the amount of people that continue to travel to Las Vegas to empty their pockets.

GreenDoberman · Apr 13, 2005

Wild Bill has a fantastic analysis of this.

Right now WYNN is severely overvalued and I have no DOUBT that the stock price will decline dramatically in the coming months. If you are a risk taker, selling short could be extremely profitable. The history of run ups in gaming stocks before openings and subsequent declines is a foreteller of the future as well as Steve's companies historical underperforming of the market.

I have many dear friends going to work there as well as a few members of this board. This is not to say that it is a bad company to work for (in fact, the complete opposite) or that it will be anything less than a spectacular resort.

While Harrah's and Station's do everything to maximize shareholder value, they come off as Wal-martesque and completely average and bland. Stock price and customer enjoyment are two different things.

BaseballGuy · Apr 13, 2005

GreenDoberman said:
Wild Bill has a fantastic analysis of this.

Right now WYNN is severely overvalued and I have no DOUBT that the stock price will decline dramatically in the coming months. If you are a risk taker, selling short could be extremely profitable. The history of run ups in gaming stocks before openings and subsequent declines is a foreteller of the future as well as Steve's companies historical underperforming of the market.

I have many dear friends going to work there as well as a few members of this board. This is not to say that it is a bad company to work for (in fact, the complete opposite) or that it will be anything less than a spectacular resort.

While Harrah's and Station's do everything to maximize shareholder value, they come off as Wal-martesque and completely average and bland. Stock price and customer enjoyment are two different things.

Here is the real question.

Most properties make money from the casinos, and it never hurts to fill the rooms. How in the world is this place going to fill rooms when it costs nearly 500 bucks a night?

There are only so many high rollers out there.

ChuckSims · Apr 13, 2005

Which exchange is Wynn on and what is the symbol? Do you know the high/low of the stock too? Thanks in advance.

BaseballGuy · Apr 13, 2005

WYNN on the nasdaq

BaseballGuy · Apr 13, 2005

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1.95 (3.12%)</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Prev Close:</TD><TD class=yfnc_tabledata1>62.54</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Open:</TD><TD class=yfnc_tabledata1>63.57</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Bid:</TD><TD class=yfnc_tabledata1>0.01<SMALL> x 100</SMALL></TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Ask:</TD><TD class=yfnc_tabledata1>9,000.00<SMALL> x 100</SMALL></TD></TR><TR><TD class=yfnc_tablehead1 width="48%">1y Target Est:</TD><TD class=yfnc_tabledata1>79.67</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE></TD><TD noWrap width=5><SPACER height="1" width="5" type="block"></SPACER></TD><TD><TABLE class=yfncsumdatagrid cellSpacing=0 cellPadding=0 width=185 border=0><TBODY><TR vAlign=top><TD class=yfnc_datamodoutline1><TABLE cellSpacing=1 cellPadding=2 width="100%" border=0><TBODY><TR><TD class=yfnc_tablehead1 width="48%">Day's Range:</TD><TD class=yfnc_tabledata1>62.25 - 64.50</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">52wk Range:</TD><TD class=yfnc_tabledata1>34.18 - 76.45</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Volume:</TD><TD class=yfnc_tabledata1>1,417,295</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Avg Vol <SMALL>(3m)</SMALL>:</TD><TD class=yfnc_tabledata1>1,154,454</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Market Cap:</TD><TD class=yfnc_tabledata1>6.42B</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">P/E <SMALL>(ttm)</SMALL>:</TD><TD class=yfnc_tabledata1>N/A</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">EPS <SMALL>(ttm)</SMALL>:</TD><TD class=yfnc_tabledata1>-2.25</TD></TR><TR><TD class=yfnc_tablehead1 width="48%">Div & Yield:</TD><TD class=yfnc_tabledata1>N/A (N/A)</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>

Baker · Apr 13, 2005

You guys are overstating the room rates by using the Friday night right as the benchmark. Bellagio, Venetian and Ceasars all have weekend rates at or above that of the Wynn. There will be plenty of people that will jump at the chance to stay at the new place on the strip.

max1234 · Apr 13, 2005

I believe the same thing was said when he built the Mirage.... as far as 'bad' economy goes, I believe Las Vegas is doing better than ever from what I've read. If you don't believe it then try to get a cheap room on a weekend. Premium players like those that have been staying at Bellagio in the last couple of years are always looking at some place new and exclusive to stay at. If he hires the right casino reps he'll get the customers he's seeking. And it's not the crowd that stays at Harrahs or the Station properties.

silver7 · Apr 13, 2005

The Strip vs rest.

I`m a "Stations" kind of guy, hate the strip. Baker where in the TC`s? Me too!

Dante · Apr 13, 2005

as long as the RX's very own poster KISS1 works there how can it fail!!!!

Kiss1 · Apr 13, 2005

Dante said:
as long as the RX's very own poster KISS1 works there how can it fail!!!!

Good point !

They are breaking ground this summer on the Wynn sister property called "Encore." It is scheduled to open in 2008.

Yea, Wynn is gonna fail and pigs are going to fly.

:dancefool