Keith shorted WYNN in the Hedgeye Virtual Portfolio at $124.33. According to his model, there is solid TRADE and TREND resistance at $131 and $139, respectively.
As we mentioned in our notes "Macau Observations" and "Receivables Don't Look Out of Whack" (published on 11/16/11 and 11/17/11, respectively), we believe LVS's recent aggression on junket commissions and credit will affect the other Macau operators. Wynn Macau is in sort of a Catch 22 - either they raise commission rates and/or expand junket credit or continue to lose share, possibly at an accelerated rate. Should they pursue a more aggressive junket strategy, they risk losing the perception of invincibility in the eyes of investors.
