Wynn Resorts, Limited (WYNN)

spec bear

I think the Las Vegas/Casino based stocks are some of the best bets. Wynn, MGM, and LVS aren't going anywhere. Considering the DOW is back near 10,000, halfway back to its high, I can only imagine that as the rest of the country slowly recovers, you will see stocks like LVS which was once selling down near $2 a share back to $100+. The desire, want, need to gamble will not go away. The minute spare funds are available, casinos will be back to their prime. Companies like WYNN, MGM, and LVS are highly leveraged in their desire to expand, but will ultimately survive and be stronger for it. The timing of the downturn was bad, but even local to me (Western New York) the casinos here are upset that instead of making $120 million, they only make $102 million. Belive me, they aren't losing money and the only thing that has these larger traded companies in a bind is the poor timing to be highly leveraged. I don't think they are losing any money, they have just lost all ability to find financial flexibility, further leverage themselves, or possibly to maintain any loan covenants that would otherwise be a non-issue. As the economy recovers, their significant investments will pay off, their leverage will increase, they will be back to having financial flexibility, and they will again thrive.