To The Moon

Background and Current Performance

Recently, I made an additional investment in Wynn Resorts Ltd. (WYNN) $Wynn(WYNN)$  , capitalizing on the stock's current price below $93 per share. This price reflects a 12% decline over the past three months. Despite this dip, several factors suggest a promising upside potential.

U.S. Properties Performance

Wynn's U.S. properties have shown robust performance. Las Vegas, in particular, has experienced a significant recovery post-pandemic, with increased visitor numbers and higher spending per visitor. The company's properties in Boston have also contributed positively, benefiting from regional demand and limited competition in the area. The overall health of Wynn's domestic operations indicates strong cash flow and profitability, which are critical for sustaining dividends and funding future expansions.

Macau Operations

Wynn's operations in Macau, a critical market for the company, have been recovering steadily. Macau remains the world's largest gambling hub, and Wynn’s properties there are performing well, benefiting from a gradual return of tourists and an improving regulatory environment. As China's economy stabilizes and travel restrictions ease, Wynn is well-positioned to capture significant market share in this lucrative region.

Market Sentiment and Future Expectations

The current market sentiment has undervalued WYNN stock, primarily due to short-term concerns over economic uncertainties and geopolitical tensions. However, these factors are expected to be transient. Historically, the market tends to correct itself, recognizing intrinsic value and growth potential. I believe that the market will eventually "come to its senses" and the stock price will rebound, reflecting the company's strong fundamentals and growth prospects.

Strategic Rationale

1. Attractive Valuation: Investing at a price below $93 offers a compelling valuation, especially given the stock's historical performance and potential for recovery.

2. Strong Fundamentals: Wynn’s strong performance in both the U.S. and Macau, coupled with its strategic initiatives, underpin long-term growth.

3. Market Rebound Potential: The current price dip provides a buying opportunity, as the stock is likely to recover as market conditions stabilize.

Conclusion

This additional investment in WYNN is based on a strategic evaluation of the company's robust performance, attractive valuation, and the anticipated market correction. As the broader economic landscape improves and investor sentiment shifts, Wynn Resorts is well-positioned to deliver substantial returns, making this a prudent addition to my investment portfolio.

$Wynn(WYNN)$