Translating Corporate Speak: Wynn [Unforeseen Upside Edition]
by Mr JugglesLong 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.)
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The Lou Dobbs and Pat Buchanans of the world could learn from this post: If the Chinese are so mind-bogglingly stupid as to be limitlessly willing to loan our government money at 3% interest, then we should, um, let them.
Cheers…
Steve Wynn: best taste in cocktail waitresses, five years running.
Wynn for Veep.
This guy is as much of a thug as a white Wharton grad in a suit could ever hope to be. (Now can I please have a job mr wynn?)
That’s the way it is and it should be. Steve Wynn is a master in transferring money from other people to his own pocket … and some smart investor’s can also profit a little bit by it, … it’s just a money tranfer game.
Of course, we need to mention that in this particular conference call, Steve also prided himself that the company out of the goodness of their hearts and because Mr. Wynn is also a grandfather and he understands family and Christmas, gave $5 million bucks to their employees, … and that’s why EBIDTA was “only” up some 98.5% and not 99%.
Translation: We (Steve) just had to clean our conscience (if it exists) from “legally” transferring so much money into our (Steve’s) own pockets every which way we (Steve) were able to do.
having Milken write some “creative bonds” at the onset of one’s career helps too.