I first read the conference call of Las Vegas Sands (LVS) and found they have the largest presence in table and room space in Macau. In contrast, Wynn is operating on a scale one tenth of Sands but are seeing a better rate of return. To quote Steve Wynn from his 2014 Q2 call, "...we are approximately half as profitable in Macau as The Sands, with only 10% of the rooms." Wynn is careful in deploying capital for expansions and does not under estimate his competition. Wynn Palace is a new property under construction in Macau scheduled to be open in 2016 with the focus being on not cannibalizing their existing properties consistent 98% occupancy rate.
On the finance side Wynn has operating margins above 20% and excellent EPS of 8.11. Looking at their chart the stock price is close to the 50 day moving average, RSI is below 50 and MACD is tracking close for a crossover. The casino stocks have all come down from fear of Chinese government intervention and tourist exhaustion from the World Cup which makes now a good buying opportunity.
