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Wynn Resorts - WYNN - close: 49.95 chg: +3.10 stop: 44.99

Company Description:
Wynn Resorts is traded on the Nasdaq stock exchange under the ticker symbol WYNN and, since December 2004, it has been part of the NASDAQ-100 Index. Wynn Las Vegas, a $2.7 billion luxury hotel and destination casino resort located on the Las Vegas Strip, opened to the public on April 28, 2005. Wynn Las Vegas features 2,716 luxurious guest rooms and suites; an 111,000 square foot casino; 22 food and beverage outlets; an on-site 18-hole golf course; approximately 223,000 square feet of meeting space; an on-site Ferrari and Maserati dealership; and approximately 76,000 square feet of retail space. (source: company press release)

Why We Like It:
The casino stocks got some positive press today and it looks like shares of WYNN have reversed into what could be the beginning of a new up trend. Analysts have been talking positively about rising room rates for the big resorts and how Americans plan to do a record amount of traveling this year with most of it in the U.S. You can imagine that Las Vegas is near the top of the list for domestic vacation spots. WYNN's daily chart is not only showing what looks like a "W" bottom but the rally today was fueled by volume more than double the norm. Strong volume on a bullish breakout normally suggests more strength ahead. In addition to WYNN breaking its two-month trend of lower highs its P&F chart has reversed as well. The Point & Figure chart shows a double-top breakout buy signal that now points to a $66.00 target. We normally hesitate to chase a big move like today in WYNN but if the market keeps climbing we may not have much alternative. If you are the patient type, we would much prefer to buy a dip back into the $47.50-48.50 range. Due to today's big move our stop loss looks pretty wide. You may want to consider a tighter stop. Our target is the $57-58 range although we do anticipate trouble near the simple 50-dma and exponential 200-dma currently near the $55.50 region.

Suggested Options:
We are suggesting the July calls

BUY CALL JUL 45.00 UWY-GI OI=1221 current ask $6.30
BUY CALL JUL 50.00 UWY-GJ OI=3417 current ask $3.10
BUY CALL JUL 55.00 UWY-GK OI= 239 current ask $1.25

Picked on June 01 at $ 49.96
Change since picked: + 0.00
Earnings Date 08/03/05 (unconfirmed)
Average Daily Volume = 2.2 million

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