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Wynn Shares Up After $6 Dividend
Message was posted: 07:26 Nov 21st, 2007

User: Joseph Rank: Casino Gold: 31383CG Contributor rating: 39760 Status: Offline

NEW YORK — Shares of Wynn Resorts Ltd. rose Tuesday after its board announced a $6 dividend and an analyst upgraded the casino resort company, citing a recent dip in shares. Shares gained $7.7, or 6.2 percent, to $132.89 in midday trading. The dividend will be paid Dec. 10 to shareholders of record on Nov. 30, the company's board said. Jefferies & Co. analyst Lawrence Klatzkin upgraded the company to "buy" from "hold" and kept his $152 price target. Shares have fallen about 60 percent since Oct. 2. "Recent declines in the price of Wynn stock reflect investor concerns as to the strength of the Macau gaming market," Klatzkin said in a client note, referring to Wynn's multibillion operation in the Chinese city. "We continue to see Macau's gaming market to be strong and forecast it to be on track for a total market size of over $15 billion by the end of 2010." Beyond Macau, Wynn should continue to do well in Las Vegas, and could potentially enter Japan if it wins a casino license in that country, he said. The company will likely borrow more money to finance its expansion in Macau, but even after the dividend, it will likely have "ample cash balances" of around $1.3 billion, said Morgan Stanley analyst Celeste Brown. Chron