Diamonds and Dogs
Finding a diamond in the rough can be a gamble, unless you know where to look. Wynn Resorts (WYNN) is up 13% following better than expected earnings. The earnings were actually down 20% year over year while sales declined 17%, but with the stock down over 50% in the last year, a lot of the bad news has been priced in. The more encouraging news is that CEO Steve Wynn initiated Macau's market has improved so far in 2016. Steve Wynn has a good reason to talk up his stock. He owns over 10% and bought an additional $90 million in the last two months. The company has a new $4 billion casino opening in Macau come June. Once that casino gets going, the fundamentals and stock may keep pushing higher.
How do you like your side of the bed, firm or soft? Select Comfort Corp (SCSS) is the designer, manufacturer, marketer and distributor of the Sleep Number beds. The company's shares dropped 23% following disappointing earnings. The company reported a loss of 42 cents per share, compared to estimates of 5 cents per share. Implementing a new Enterprise Resource Planning system reduced sales by about $84 million in the quarter. The company said transitioning from their 20-year-old legacy systems to a fully integrated Enterprise Resource Planning platform has been more challenging. With the stock trading at a two year low, let's hope the company can get things turned around.