07Feb10:23 amEST

Ironically, Wynn's Stock Did Nothing Wrong

Although it is almost a forgone conclusion at this point that Steve Wynn's behavior and conduct to women throughout his esteemed gaming career crossed the line many times over, we must resist the urge to extrapolate the bad actions of a megalomaniac to the rest of the company and its many employees. 

As Wynn himself officially resigned last evening as CEO of WYNN, I pondered whether it was now time to sell out of the long-term investing position I noted for VIP Members last March 2017, also discussed in more detail in this blog post here, and then a follow-up here

But then I remembered that markets tend to despise uncertainty, regardless of how nasty the actual certainty may be. It is the uncertainty which tends to more bearish than the actual pain, which makes sense in life--Think about how often you have dreaded or feared something, only to find out the actual thing you feared or dreaded was not quite as bad once you actually experienced it. And the same typically holds true for markets. 

Regarding WYNN's stock, the stock is surging today despite the many calls for it to get pummeled last evening on the Wynn resignation news. WYNN held its primary breakout dating back several years now, above $160. And it is still, unbelievably, a few more days of rallying away from its January highs. I am still a long-term holder, albeit with a very close eye on how things develop from here. 

There is also a sense in Vegas that Wynn will still be calling the shots behind the scenes, since new CEO Matt Maddox has been with the firm for many  years now and is likely to stay in close touch with Wynn himself. I will stop short of drawing the "puppet" analogy, but needless to say I expect Wynn to always be a phone call away. 

Elsewhere, equities are bouncing back some more off yesterday. We are not out of the woods technically, though, so I am keeping a close eye as to how any longs I take are treated into this push higher. 

Stock Market Recap 02/06/18 ... Be Careful Who You Trust


This website is intended for educational purposes only. | © 2021 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site