The casino industry is facing a perfect storm of unfavorable conditions : global recession, increased competition, and decreased business travel. Wynn Resorts (NASDAQ:WYNN) reports earnings on Friday, and after missing expectations on Q4 by over 80%, this Friday could represent a troubling day for casino operator.
WYNN has a relatively high short base (as measured by Percent Shares Outstanding on Loan) at 14.42%. This is down 2.5 million shares after hitting a three month high of 16.65% on April 9th. What might be of concern to short traders is that Data Explorers Utilization (a measure of supply and demand of the amount to borrow) shows that it is a crowded position with 80.49% of the available inventory being used.
The Short base of WYNN is well above that of Las Vegas Sands (11.97%), MGM (6.72) Melco (0.71%) and Century Casinos (1.04%). However, these all have a relatively high level of Utilization.