Diamonds and Dogs
What happens in Vegas stays in Vegas except when the CEO of today's diamond buys more of his own stock. Wynn Resorts (WYNN) the owner of Wynn Casino's in Las Vegas and 72% of the Wynn Macau in China rose $8 or 13% after CEO Steve Wynn bought a million shares or $65 million worth of his own stock in the open markets in the last week. It's been a tough year for Wynn with the stock down 53% due in particular to weak demand out of China. Besides a slowing economy, The Chinese government has cracked down on corruption and money laundering in the Macau casinos. Wynn Resorts has taken the brunt of the weakness with their VIP business, but 2016 is looking brighter. The Chinese government is looking to turn Macau into a more family friendly resort town similar to Las Vegas and Wynn is well situated for the long term with a new $3 billion casino to open in June of 2016. With 11 million shares, Steve Wynn will be the big winner of an economic and stock rebound in China and Wynn Resorts.
Get your yoga mats out because you might want to stretch and release some stress after today's dog's plummeted. Lululemon Athletica (LULU) dropped 13% after reporting disappointing earnings even as sales increased 14% to $479.7 million. Going forward, the company had to reduce sales guidance while also conceding that inventory ballooned hurting future profit margins. The Vancouver based company makes designer retail for healthy activities such as yoga, running, general fitness and dance operating 211 stores in the US, 57 in Canada and 34 across the world.
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