After hitting a one-year low of $85.53 in June, the stock hit a one-year high of $176.14 in October. WYNN opened this morning at $95.81. So far today the stock has hit a low of $95.60 and a high of $106.96. As of 12:15, WYNN is trading at $101.55, up $6.01 (6.3%). The chart for WYNN looks neutral and deteriorating, while S&P gives the stock a bearish 2 Stars (out of 5) Sell rating.
For a bullish hedged play on this stock, I would consider a June bull-put credit spread below the $75 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 9.9% return in just two months as long as WYNN is above $75 at June expiration. Wynn would have to fall by more than 26% before we would start to lose money. Learn more about this type of trade here.
Las Vegas Sands Corp. (NYSE: LVS) shares are trading higher today, even though the company reported an adjusted fourth-quarter profit of $71.1 million, or 20 cents per share, well below analyst estimates of 35 cents per share. The company blamed high construction costs on multiple new resorts for the lower earnings. However, its Las Vegas Strip model of casino-resorts is paying off in Macau, as revenues at its Macau resort increased 46% over the previous year to $10.3 billion in 2007.
Due to the fact that LVS sank 7% yesterday on a profit warning from an industry analyst, investors see this morning's earnings as not so bad. Plus, they see something to be excited about in the Macau resort's performance, judging by this morning's jump in stock price. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on LVS.
After hitting a one-year high of $148.76 in October, the stock hit a one-year low of $70.70 last month. LVS opened this morning at $84.74. So far today the stock has hit a low of $84.74 and a high of $90.19. As of 11:05, LVS is trading at $88.61, up $7.16 (8.8%). The chart for LVS looks bearish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.
This post was part of the AOL Money & Finance Best & Worst of 2007 feature. The voting has now closed and readers have chosen the Dubaias the breakout city of the year. Be sure to let us know in the comments if you are pleased with this result.
What are breakout cities? Cities that seemed to pop up in news stories with uncommon frequency, that have developed a cachet, that appear on the itinerary of early adopters. For your consideration here are four outstanding, very different candidates for this honor. Which whets your travel appetite?
Dubai City, U.A.E. Nothing helps build a city quicker than petrodollars and a monarchy devoted to world-class projects. Dubai has all of that and more. The city that calls itself the "City Built For Tourism" is known as the home of the world's largest free-standing hotel, the Burj Al Arab. This ultra-ultra-luxury, 1,000-ft. tall hotel with a profile evoking billowing sails has quickly become the symbol of Dubai.
Under the vision of the ruler Mohammed bin Rashid Al Maktoum, Dubai has used its free-trade zone status to also develop into a world center for business. Having the world's largest manmade harbor and an airline that serves as a hub for the Persian Gulf region (with a new one under construction) helps, too. Dubai's acceptance of other culture's mores has helped turn it into a popular tourism destination, as well.
Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.
Ian Wyatt, editor of The Growth Report, chose LJ International Inc. (NASDAQ: JADE) as his favorite stock for 2007. Its 173% gain as of 6/1/07 has made it the number one performer among all stocks in our Top Picks for 2007 report. Here is Ian's original recommendation for JADE and his current favorite stock for the rest of 2007.
Updating his recommendation, the advisor now says, "LJ International continues to capitalize on China's extraordinary growth and accompanying demand for luxury goods -- specifically high-end jewelry -- by expanding its network of ENZO branded jewelry stores.
"Since 2004, when LJI began opening retail jewelry stores in China, it has opened more than 45 stores, established a presence in all of China's major cities, including Hong Kong and Macau, and established itself as China's #1 foreign branded jewelry retailer (Hong Kong and U.S. based), ahead of Tiffany & Co.
"The company has plans to more than double its network to 100 stores by year-end 2007, ahead of the Beijing Olympics. These stores generate robust sales, and, more impressive, nearly half of the existing stores are already profitable. Continued growth of its retail operations will enhance LJI's profitability since ENZO gross margins are twice those of the wholesale business.
Many thought that Kerkorian's intention was to nudge MGM Mirage (NYSE:MGM) onto the sale block, to see what his 56% of the remaining company assets might fetch in a buyout-friendly climate. The latest deal, with its implications for increased debt and holdings value, apparently caused him to rethink this move, at least for the moment.
MGM Mirage already has a huge footprint in Las Vegas, but remains very aggressive (i.e. carrying a considerable debt load) in pursuing further growth. Its new $725 million Detroit casino is scheduled to open late this year. The CityCenter complex in Las Vegas has tied up $7.4 billion and won't be ready until 2009, and MGM has put another $1 billion into a cooperative venture, MGM Grand Macau, opening later this year. It is also in talks about another huge development on the Cotai strip in Macau.
Those punters who jumped on the bandwagon at the initial announcement of Kerkorian's interest in Bellagio are jumping back off this morning. MGM Mirage stock was down more than 10% in early trading.
Las Vegas Sands (NYSE: LVS), Wynn Resorts Ltd. (NASDAQ: WYNN), and MGM Mirage (NYSE: MGM) all have huge investments in the Las Vegas of the east, Macau. How large is illustrated by the drop in stock prices when, last Friday, a local China paper reported that Guangdong province was tightening travel restrictions to Macau. LVS finished down 1.56% and Wynn dropped 2.02%. MGM weathered the storm to finish even, possibly buoyed by Kirk Kerkorian's offer last week to buy two prime (non-Macau) properties.
Because the Macau region now surpasses Las Vegas in gambling revenue, punters have taken a distinctly bullish view of development, ignoring the Chinese government's capricious attitude about its people's freedom of movement.
I don't expect the Chinese government to strangle the growth of the Macau region, especially in the run-up to the 2008 Olympics. However, I think that we'll see more occasional setbacks in the stock of these companies, whenever something like this happens to remind investors of the greater risk they assume by piling their chips on red to win.
That's right: Branson, the Missouri resort-town best-known for all-you-can-eat buffets and family-friendly theaters featuring performers like the Osmonds and Anita Bryant, will now be offering casino gambling. Well, not quite. Actually, mogul of all trades Richard Branson is in negotiations to acquire a site in Macao for a $3 billion dollar casino project.
This announcement comes on the heels of Macau surpassing Las Vegas in gaming revenue. Now, it looks like the former Portuguese enclave (now back under Chinese control) will have its own flamboyant casino mogul to rival Steve Wynn and Donald Trump.
U.S. stocks rallied as investors ignored higher interest rates as oil closed below $54 a barrel. Crude oil closed down 3.59% to $53.64. The Dow was up 0.20%, the NASDAQ 100 was up 0.60%, the S&P 500 was up 0.18%, and the 10 year bond rose to 4.682%. The Volatility Index S&P 500 Options-VIX was down .31 to 11.60.
US Airways Group Inc.' (NYSE: LCC) option implied volatility is at 49 into US Air raising its bid for Delta Air Lines (OTC: DALRQ). US Airways increased its proposed offer of merging with Delta, which is currently operating under bankruptcy protection. US Airways is offering $5 billion in cash and 89.5 million in shares of stock. US AIrways is recently up 1.26 to $59.16. US Airways overall option implied volatility of 49 is near its 26-week average, according to Track Data, suggesting non-directional risks.
Las Vegas Sands Corp.' (NYSE: LVS) option volume, implied volatility and share price are all up on the right to develop Hengqin Island. Las Vegas Sands, the operator of the Sands Macau and Las Vegas Sands, is recently up $10.22 to $102.68. Jefferies said "after speaking with management today we learned that Las Vegas Sands was officially granted the right to develop on Hengqin Island, as we expected." Jefferies added "we currently value the project at $34 from the real estate development to be built over the course of 11 years." Las Vegas Sands call option volume of 20,530 contracts compares to put volume of 14,794 contracts. Las Vegas Sands February option implied volatility of 44 is near its 26-week average of 41, according to Track Data, suggesting larger price fluctuations.
Option volume leaders today were: Applied Materials Inc. (NASDAQ: AMAT), Research In Motion Ltd. (NASDAQ: RIMM), Apple Inc (NASDAQ:AAPL), and Advanced Micro Devices Inc. (NYSE: AMD).
Options analysis provided by Paul Foster, options strategist for Theflyonthewall.com.
Wynn Resorts Ltd. (NASDAQ: WYNN) shares are surging on news that the government of Chinese gambling mecca Macau will not issue new casino licenses for the near future. This has given casinos like WYNN and Las Vegas Sands (NYSE: LVS), who have already acquired licenses and built casinos in Macau, a big advantage in the growing Chinese casino market. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WYNN.
What are breakout cities? Cities that seemed to pop up in news stories with uncommon frequency, that have developed a cachet, that appear on the itinerary of early adopters. For your consideration here are four outstanding, very different candidates for this honor. Which whets your travel appetite?
Ian Wyatt, editor of The Growth Report, chose 
Las Vegas Sands
GM and Ford ready weak pitches for taxpayer bucks
Cramer on BloggingStocks: A troika of opportunity and trouble 
Before the bell: Wall Street headed higher; automakers, retailers in focus
