WYNN RESORTS SHOWS WITH A LITTLE HELP FROM MACAU - THE DOLLARS LOOK MUCH BETTER

Implications: Macau has been a huge plus for Wynn Resorts and their future profitability. It will allow them to build second properties in both Las Vegas and the Cotai Strip. The cash flow in Macau has shown to be their golden fleece - a large golden fleece........

Analysis: Although, Wynn Resorts are showing some good looking numbers of late, they are still facing some internal problems in Las Vegas. The big problem still on their plate is their employee relation disaster with the staff of dealers. This problem has not come to a head as of this writing, but I would surmise, that if the dealers are not given their tips back the union will soon follow. I am sure that after all is said and done this is a matter that should have not gone as far as it has. It's always OK to add to an employees pay package - taking a portion away and giving it to supervisors is poor policy. That's enough said on that subject....

Just to make sure that it is clear, Wynn is now in the process of building his second resort in Las Vegas - this new property will be just north of the existing hotel and is on the same land when he purchased the Desert Inn property. At this time, it is being called the Encore, however, this may change to another name during construction. Will this place have the beauty of the LV Wynn ??? - you bet it will and the amenities will be on a grand scale. This is the only way Steve Wynn knows how to build a hotel. The fact of the matter is, it should enhance to performance of both properties - I don't think they are concerned about the possibility of competing with themselves. He has done this before and was very successful. What about Macau? - to this point he has not really discussed in detail what his plans are for his second property on the Cotai Strip - he has the right formula for that area as proven by his existing property there.

Wynn knows how to operate - he has the golden touch when it comes to a gambling hall and hotel - he has always set the standard for other operators to emulate - and they do. It's my feeling that this new property in Macau will have his cash flow soaring - he has always found a way to build the bigger and better mouse trap............