Thursday, December 6, 2012

Wynn Jumps on Report of Imminent Macau Land Deal

Wynn Resorts (WYNN) rose 4.4% on Wednesday on a report that the company is close to completing a land� deal that would allow it to open its third Macau casino.

A local Macau media outlet said the deal could close this month, although research analysts who cover the company were quick to caution that initial reports may not be accurate. The company did not immediately get back to us about the report.

“We prefer to take a more conservative posture towards this news since it did not come from an official government source. However, investors appear to be reacting favorably to this news,” wrote Nomura analyst Harry Curtis.

Investors are clearly excited about the possibility of a new Macau casino. Wynn had erroneously announced that the deal had won approval last month, briefly sending shares higher.

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