Warren Buffett always says that outstanding management is one of his requirements to invest in any company. With that in mind, let’s take a look at the differences in how two prominent casino companies, MGM Resorts International (NYSE: MGM), and Wynn Resorts, Limited (NASDAQ: WYNN) are managed, and some of the key decisions made by the CEOs which are reflected in today’s stock prices. I believe that a strong case can be made that one is extremely well managed, while the other has dice rolling buffoons at its helm.
MGM stock’s soared with the housing market, reaching over $91 a share in October, 2007. Since then, the stock has plunged over 90%, sitting just above $9.00 a share today. Wynn Resorts fell from over $164 a share, to $93.00 today during the same period. That’s not to say that WYNN has done well, but during that time it is paid out some large special dividends to shareholders, while MGM has paid out zero, and Wynn hasn’t fallen nearly as much.
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