Wynn stock soars after CEO resignation
Traders piled into Wynn Resorts on Wednesday, following the resignation of founding CEO Steve Wynn, who has been accused of sexual harassment and assault (he denies the allegations).
Bottom line: Wynn stock is still around 13% lower than before the allegations were first published by the Wall Street Journal.
Today's bump may suggest faith in new CEO Matt Maddox, even though Wynn Resorts said the following last year in an SEC filing:
Our ability to maintain our competitive position is dependent to a large degree on the efforts, skills and reputation of Stephen A. Wynn... If we lose the services of Mr. Wynn, or if he is unable to devote sufficient attention to our operations for any other reason, our business may be significantly impaired.
Another possibility is that traders believe the casino empire will eventually be broken up, and that it's currently valued lower than the sum of its parts.