Do you remember the “Do over!” SEC filing from Wynn Resorts Ltd. (NASDAQ: WYNN) a few weeks back? Everyone assumed it meant a deal was all but done, but now shares are trading higher on a weak day on speculation from a local business report that Wynn’s Macau subsidiary is about to secure a deal with the local government that would allow the luxury casino player to put in another casino on the Cotai strip. It is said that Macau may even sign as soon as this month. Investors have been expecting the news since that filing SNAFU by Wynn employees.
Macau Business reported, “Portuguese-language newspaper Jornal Tribuna de Macau quotes a source close to the project as saying that the deal could be signed before the end of this month depending on the Lands and Public Works Bureau.”
The company had previously announced that it had accepted the terms and conditions of a draft for a 25-year land concession. It does not sound like a done-done deal, but investors should have been expecting this move since that bungled SEC filing. We would always treat such reports of re-reported fake news breaks as a rumor, or even a re-rumor, until a formal press release hits the tape.
Today’s news is good for what is a 4.7% gain to $130.67 in Wynn. While this may prove to be yet one more bit of competition for Melco Crown Entertainment Ltd. (NASDAQ: MPEL), Melco Crown shares are up 3.7% at $14.86.
JON C. OGG