Long or Short frequently critiques management teams who lie, obfuscate, and otherwise fail to tell investors the full story. So it’s only right that we point out management teams who have tickets on the Straight Talk Express. During yesterday’s earnings call, Steve Wynn of Wynn Resorts told it like it is.
[Responding to a question as to why Wynn issued equity at $154 at the end of September and then paid a dividend of $6/share on December 10th. Note that Wynn shares had traded in the $80s in June of last year and at $120 yesterday.]
It is the job, and you can take this as a final statement on the subject going forward. It is the job of board of directors and especially of the CEO to take advantage of the market when that market movement is extreme. When a company increases its value by 100% in 60 days, that’s an unnatural movement of value and the market also goes the other way sometimes. These unnatural movements in value, no company gets to be worth twice as much in 60 days as it was before to any intelligent person, so when that happens, we take advantage of it. If everybody is so hungry for shares, we let them have some. If the shares go down, we buy them. And that, that is a statement of policy in this company, period.
Translation: Y’all are fools and so we took advantage of you.
[It] would be nice…we always seem to get questions every quarter from the same five or six people, and you mention there were 200 people on the call, and I was hopeful that somebody new might have a more– a question that attacked our business from a different angle, for example, and if that’s not the case, we’ll say thank you and good-bye to everybody, but we’re always anxious to hear from new people if they are on the call…besides our competitors.
Translation: Why do I keep getting the same 5 stupid questions from the same 5 stupid people every quarter. Someone save me! (But not you, Sheldon.)Related Reseach:
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