Jim Cramer, in this exclusive sneak peek from his August Action Alerts PLUS investing call, said Wynn Resorts (WYNN) - Get Free Report is testament of a universal investing truth. When the story changes, it's time to change your approach to the stock.
Let's start with the one that's the most likely to participate in this phase of the rally that we own, Wynn Resorts. Now, if you recall in the last conference call, I talked about two stocks that I couldn't have been that wrong on, Wynn and Nucor. What can I say? The latter proceeded to rally 30 points, nice work, if you can get it.
The former Wynn, it hasn't performed as I'd like, hasn't panned out at all, frankly. But I think that's about the change because the facts have changed, and you have to change with those. John Maynard Keynes said it, and I always echo it.
The stock got socked, one-two punch by Delta and by the People's Republic of China putting restrictions on Macau. Now, of course, we just learned that the restrictions are off. They still have a seven-day, but not a two-day for testing. And we are back in wide open mode because of this notion that the Pfizer approval has changed everything.
I think people will be looking for stocks that are not Chinese-based that can still capture the Chinese rally as well as for travel and leisure stocks that haven't moved that much yet versus when they traded pre-Delta. And of course, here I'm thinking about Vegas. And that's Wynn.