Wednesday, January 24, 2007

Calls of Note Part 1

- Thomas Weisel comments on Wynn Resorts (NYSE:WYNN) saying Macau gaming win rose a healthy 44% in 4Q06, which bodes well for Wynn Macau and could be a source of upside for WYNN. Based on market win and recent market share figures, the property could be tracking ahead of firm's top-line estimates by 5% or more.

Stock call: A strong quarter with the potential for upward revisions could prove to be a short-term catalyst for the stock, but they continue to harbor concern over valuation and would remain on the sidelines at recent prices.

Based on estimates, they get to an $80-85 CFV (sum of the parts), and the stock is well above that. We argue that investors are paying a fair price for existing resorts, announced projects and giving credit for at least one other project. Firm sees upside potential as limited and would remain on the sidelines until they get clarity on further projects in Macau and plans for the Cotai Strip in particular.

Notablecalls: Not actionable but good to know category.

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