We are buying 100 shares of Wynn Resorts (WYNN) at roughly $96.89 apiece.
Before the Covid pandemic, the company generated about 75% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) from its Macao properties.
And since the Macao properties' cost structure was reduced to minimize losses during the lockdowns, the operating leverage as revenues recover has been both notable and underappreciated by the market.
Despite recent weakness due to fresh Covid concerns, the May CGR numbers numbers for Macao indicate that there has not been any material slowdown in gaming.
Wynn stock is still up nearly 17% year-to-date, and we believe China's long-term economic recovery is on track.
Persons:
Jim Cramer's, GGR, Covid, Wynn, WYNN, Jim Cramer, Jim
Organizations:
Wynn Resorts, WYNN, Macao, Boston, CNBC
Locations:
China, Macao, U.S, Las Vegas, Boston, Beijing