Cramer: Don’t Gamble on Wynn Resorts
Shares of Wynn Resorts may seem cheap at first glance, said Jim Cramer on CNBC’s “Mad Money.” After all, the casino operator’s stock is currently selling for 14 times earnings with a 14 percent growth rate.
But is Wynn worth buying right now? To Cramer, the answer is no.
“Wynn is simply the wrong kind of stock for this environment,” Cramer explained. “Too many things have to go right with this story in a market that’s punishing companies viciously any time they stumble.”
Of the number of problems facing Wynn, Cramer noted it is currently looking at a big shareholder lawsuit.
Wynn is also extremely dependent on China, which is problematic given its economy seems to be slowing down, Cramer said. If China does experience a downturn, Cramer thinks Wynn’s stock could get crushed.
All things considered, Cramer doesn’t want to own Wynn's stock right now.
“Wynn has a fabulous long-term story, but this is a horrendous moment to own the stock. Right now Wynn is a battleground and in this market, battlegrounds get you killed," Cramer said. "Don’t be a hero. Take a pass and step away from the gaming tables ... at least for now.”
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