Lost a Bet on Wynn Earnings

Apparently I also missed Wynn Resorts (WYNN) reporting earnings - as always, I should not have high exposure long or short going into an earnings report. Instead of losing 1 cent, the company gained 9 cents, and true to form, the stock is up 15%. They missed on revenue, but no one cares about revenue anymore.

We had half a short position on this name (2% allocation), so I am going to add the second half in the coming day(s) - preferably as the S&P scorches through 1000 on the way back to all time highs by Labor Day. Should not have had any position since earnings were coming, but just missed it. Let go of a quick profit on the short side just like that (first 2% is in mid $46s). The stock is north of $50 and I'd love for it to get to $60 to put the 2nd half on; then when it drops, to fill today's gap we can still win. Let's do it.

• Casino operator Wynn Resorts Ltd (WYNN) posted a lower second-quarter profit on Thursday as revenues fell. Wynn, which has filed to list its Macau unit on the Hong Kong stock exchange, reported net income of $25.5 million, or 21 cents per share, compared with net income of nearly $272 million, or $2.42 per share, a year earlier.
• Profit fell to $25.5 million, or 21 cents per share, from $272 million, or $2.42 per share last year. Adjusted to exclude one-time items, net income totaled 9 cents per share. That beat analyst expectations of a penny loss per share.
• Revenue fell 12 percent to $723.3 million from $825.2 million in last year's second quarter. Analysts predicted higher revenue: $739.3 million.

Short Wynn Resorts in fund; no personal position

Comments

[Ricard:]

Better luck next time :)

You've sold me on looking for strength going into labor day. Looking for short signals ahead of October.

Jul 30 07:37 PM

[Roger Knights:]

"Looking for short signals ahead of October."

How about the gravestone doji in SPY today?

Jul 30 07:56 PM

[John Galt:]

I saw WYNN on my screen up big and I thought about you. I don't like seeing anybody lose money and especially somebody who'se opinion I value so much.

Just remember Buffet's quote about the market in the short term being a voting machine, and in the long term it being a weighing machine.

$

Jul 31 08:36 AM