Reward and risk is one of the most important aspects of owning shares in the gaming industry; it is exactly like gambling in a club or casino. The traders have to keep a balance between their gaming spending as well as their stocks, which can make even the best of the best resort businesses to come down.
One of the most famous gaming companies is Wynn Resorts, Limited (NASDAQ:WYNN), which has some of its biggest resorts located in Macau and Las Vegas. The resorts in these 2 locations have made around $1.39 billion and $528.2 million in cash flow over the last 12 months.
The founder and chief executive officer of the company, Steve Wynn, says that he has always tried to keep the offerings competitive and qualitative. He further says that Wynn Resorts in one such example. Not only is Wynn Resorts, Limited (NASDAQ:WYNN) the most expensive place on the Las Vegas Strip but it is also the most profitable club of that area.
Although the Wynn Resorts, Limited (NASDAQ:WYNN) is not the most profitable club in Macau, but it nonetheless makes to the list of top clubs of the region. Since the club only accommodates the VIPS, it has been facing quite a competition with Las Vegas Sands (NYSE:LVS) due to a reduction of VIP’s spending in the gaming industry.
The company’s third quarter’s revenue for the Macau region were down by 5.6 percent whereas its overall revenue figures for the Macau clubs declined by 23.2 percent when compared with the figures of the same quarter a year back. The company, no doubt, has the best properties of town in its possession, and hence it is difficult to understand as to why the revenues of Macau region are down.
The good news, however, is that Wynn Resorts, Limited (NASDAQ:WYNN) is planning on investing in two chief projects, which have the potential of making the company grow big. A $4 billion Wynn Palace in Macau will be opened up soon. Similarly, the company will also start a new $1.6 billion resort in the region of Boston as soon as it gets all the documentations.
When combined, these two new projects can almost double the company’s profits and revenues by the year 2017.
The company’s high EBITDA makes it one of the most important and expensive stocks of U.S. However, there is still a lot of room for growth. Wynn Resorts, Limited (NASDAQ:WYNN) can easily double its EBDITA and revenue during the next three years.
It is suggested that the traders think before they invest in the stocks of a particular company. Instead of wasting the money in a non-dividend paying stock, you should always look for the one that has some margin in it.
Talking about the shares of the company, Wynn Resorts, Limited (NASDAQ:WYNN) has been trading in the range of $176.42 to $180.11. On the last trading day, November 10, 2014, the company opened its shares at $177.69 and closed at $177.89.