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Bank of America Merrill Lynch Weighs in on Wynn Resorts, Ltd.'s Common Stock Shelf Offering (BAC,WYNN)Oct 25, 2010 (SmarTrend News Watch via COMTEX) -- Bank of America Merrill Lynch (NYSE:BAC) analysts weighted in on Wynn Resorts, Inc.'s (NASDAQ:WYNN) filing for a shelf offering for common stock following the closing bell Friday afternoon. "After market close on Friday, WYNN filed a shelf offering for common stock," wrote Merrill Lynch analysts Shaun C. Kelley, Vincent J. Zahn and Jessica A. Lebo in a research note Monday. "Specifically the document states "we may offer from time to time shares of our common stock to the public." With WYNN's stock on a recent tear, we have received a number of questions about why this is the case and implications. "We believe the filing is more procedural than imminent for an offering," the analysts continued. "This appears to actually be a renewal of a previous shelf registration they had outstanding, that expired on September 27th. WYNN's previous shelf was also only for common stock. Yes, Steve Wynn has sold shares to the public in the past to fund a dividend (fall 2007 issued $664M of equity and paid a $6 dividend two months later), but we think 1) with $1.86B on hand, WYNN doesn't need the cash and 2) this is more protection as management remains prudent, conservative and thoughtful with their balance sheet. "As is widely known, last week WYNN also filed a statement with the HKSE indicating they could consider payment of a special dividend at their Board meeting on November 2nd. Again we believe this is largely procedural (any discussion must be filed with the HKSE), but we do think there is good reason/cause for WYNN to consider doing a special dividend here," the analysts wrote. Wynn Resorts is currently above its 50-day moving average (MA) of $90.75 and above its 200-day of $81.01. In the last five trading sessions, the 50-day MA has climbed 1.29% while the 200-day MA has risen 1.14%. Wynn Resorts Ltd. owns and operates luxury hotels and destination casino resorts in Las Vegas, Nevada and in Macau, China. The resorts feature guest rooms and suits, restaurants, golf courses, and on-site luxury automotive dealerships. Write to Chip Brian at [email protected] --------------------------------------------------------------------------------------------- SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup |