For those of you who have been following the blog for a while you know my fascination with Las Vegas as part of the American fabric and as an economic indicator. We predicted a level of localized recession that was to be far more brutal than they had seen in a long time, by a confluence of events - both cyclical (recession) and structural (our "Pooring of America" theme). (Stuff I've Been Negative on Since Last Fall) When we have a true rebound I have a group of markers I am looking at that will signal it's not just Obama hype or hedge fund thesis; and the resurgence of Americans flocking to Las Vegas will be one of them. (Oct 3, 2007: A Top in Casino Names?) That, much more than desperate Americans thankful the government will lower interest rates to the lowest possible number, so they can refinance for the upteemth time, will be a truer indicator of health.

With that said, Wynn Resorts (WYNN) has one of my favored managers at the helm, Steve Wynn - he is a guy you want on your side as a stock owner and also seems like a decent fella for a boss. The following article shows why that is; along with some background on just how bad things are on the ground - a spanking brand new casino, Encore cannot sell out and the discounting going on is a complete anomaly versus what is expected in the industry. (keep in mind the pricing for Encore is "premium")


I wrote my "top in casinos" piece when Wynn was in the $150s, today it is in the low $40s. And it's been "best in class" compared to some of the other names in the sector. Keep in mind as you read this, the date of story is December 17th

• Wynn Resorts Ltd, which next week is opening the Encore casino on the Las Vegas Strip, will sacrifice high room rates, and profit, in order to boost occupancy at its Vegas resorts, according to Chief Executive Steve Wynn.
• "The last couple of weeks have been the worst I have ever seen. We had 53 percent occupancy for a couple of nights," Wynn told Reuters in an interview. He referred to the Wynn Las Vegas resort, which opened on the Strip in 2005. The $2.3 billion, 2,000-room Encore sits just north of the older property.