Wynn Resorts (WYNN) stock took a bit of a hit  on news that gaming revenues in Macau were lighter than expected. Despite overall casino revenues being up 12%, the growth was slower than anticipated. The 12% gain in May represents almost two years of continued growth in China's version of Las Vegas.

 

 

 

Macau is seen by many investors in the casino segment as an attractive proposition. With revenues in Macau outpacing Las Vegas, it is no surprise that investors are trying to capitalize on growth. May revenues could be the first signal that the growth curve is slowing a bit, and as a result the street could be less aggressive with casino stocks. Adding to the revenue dynamics is the regulatory story in China. Regulators are trying to crack down on illegal activity while at the same time trying to get casinos to increase non-gambling activities.

The dip in Wynn could provide yet another opportunity for investors to buy in at a discount off of the 52-week high with some decent protection to the downside provided by a dip to only about $170 on the very bad press surrounding Steve Wynn. I see the risk in Wynn being attributed to the growth numbers in Macau and status of the gaming Commission in Massachusetts. That license is under a review stemming from the drama surrounding Steve Wynn earlier this year.

In my opinion investors do not need to rush in to be a buyer in Wynn, but should consider taking advantage of dips in the price. There could be another opportunity in June when monthly Macau revenue numbers come out. June of 2017 delivered growth of about 27%. Matching that number will be a challenge. In Massachusetts, I anticipate that the Commission will resolve the matter sometime in Q3. Stay tuned!