Steve Wynn's Comments on Share Repurchases and Offerings

This is an oldie but goodie on share repurchases and offerings:

"It is the job, and you can take this as a final statement on the subject going forward. It is the job of board of directors and especially of the CEO to take advantage of the market when that market movement is extreme. When a company increases its value by 100% in 60 days, that’s an unnatural movement of value and the market also goes the other way sometimes. These unnatural movements in value, no company gets to be worth twice as much in 60 days as it was before to any intelligent person, so when that happens, we take advantage of it. If everybody is so hungry for shares, we let them have some. If the shares go down, we buy them. And that, that is a statement of policy in this company, period."

Goldman Sachs put out a research note last night saying that MGM's "Capital raise and results support our bullish view".

Please. It is not a good sign when a company's largest holder starts dumping shares, or when a company needs to sell more equity to pay down debt because its businesses don't earn enough cash to cover its interest expense.