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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (25897)	2/1/2007 1:17:55 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78625

Madharry, yes it's distinguished by the 'free' Aruze business, and in that way, it's a value proposition. To me though a scary, iffy value proposition. Because so very much of the value of Aruze is in holding WYNN stock. (It was 60% they own? I don't recall.) And WYNN itself is no value play. Not with forward p/e 47x, p/bk 4.8x, p/sales 9.66 times. I guess I equate value stocks as stocks having a margin of safety, and I do not get that with ARUZE. Just as ARUZE is following WYNN up as WYNN is rising, If WYNN corrects because the popularity of casino stocks and/or Macau falters, WYNN dominates and ARUZE stock is going to go down substantially no matter what the value of its (ARUZE's) stand alone business. (Well, that's my opinion.)