Wynn files erroneous report on Macao project; shares rise
Wynn Resorts Ltd. shares closed higher Friday, even after the company said that a filing reporting progress on a new resort in the Chinese gaming hub of Macaowas a mistake.
Shares had jumped 6% after Wynn filed a regulatory report saying it made progress on a lease for the resort. Then trading was halted, and the company later said in another filing that the initial filing was a mistake. Wynn says that there was no agreement and that the filing was submitted by accident.
When trading resumed, the stock fell momentarily but kept most of its earlier gains.
That might be because many investors still believe Wynn is close to getting approval for its latest Macao project, even if the filing was declared erroneous, Sterne, Agee & Leach analyst David Bain said.
Bain said that was a risky bet because the land deal could still be scuttled. The accidental filing itself might strain Wynn’s relationship with Chinese authorities.
“I can’t imagine that the Macao government is going to wake up in the morning and feel incredibly excited about this coming out,” Bain said.
Macao is a major resort and gambling destination that draws visitors from around Asia. Wynn’s performance is increasingly tied to its operations in China.
The company’s two Macao properties generate a majority of its profit. The operations in China have helped offset the casino industry’s slow recovery in the United States.
Shares of Wynn Resorts closed up 4.3% at $127.27. Trading was halted at 10:18 a.m. New York time and resumed at 11:55 a.m.