One of my favorite shows is Fast Money on CNBC, I try to catch it as much as possible. It contains a lot of great takes and insight from experienced professionals. On today’s half time version of Fast Money, the crew talked about Wynn Resorts (WYNN).
I decided to pull up the price chart (above) and I noticed a similar pattern, that being each of the major corrections the stock has experienced since 2009 has came in as 50% declines. The reason why this may or may not be relevant is that we currently find Wynn’s stock price approximately 50% below it’s early 2014 highs.
To elaborate, in mid 2009 the stock price went from a high of $43.27 to $21.59, for a decline in value of 50%. Then in mid 2011 the stock price went from a high of $165.08 to a low of $82.61 a year later, for another decline in value of 50%. Now in early 2014 the stock price made an all time high at $249.31 and has since went nowhere but down to it’s current low of $121.53, yet another 50% decline in value.
Now I have no idea whether “this time it’s different” or not. But it appears to me that IF this stock is headed higher it seems these prices would be around the area where it would make the most sense for the buyers to step in and push prices higher once again.
As always, time will tell.