Diamonds and Dogs
Wynn Resorts (WYNN) keeps rising. The stock has rallied 80% in the last two months, but the Morgan Stanley analyst, Thomas Allen sees more upside thanks to the soon to be open Wynn Palace, the new flagship casino in Macau's Cotai strip. Using discounted cash flow, the analysis Morgan Stanley assigns a price target of $120, implying another 30% upside. So far the gamble betting on Wynn Resorts has paid off in 2016.
More sobering news form the oil industry as Transocean's (RIG) stock drops 5%. Nothing works at $30/barrel said the Transocean CEO yesterday at an oil conference in New Orleans where the rebound in oil keeps being pushed out. The Chief Executive Officer Jeremy Thigpen expects it will have to wait at least another three years before his company can begin charging higher rates for offshore rigs. The company is taking the necessary steps to navigate the downturn, but also prepare for the eventual recovery. The good news is, the company expects to survive the downturn.