Lastmonth, despite not having liquidity issues like some of itspeers, the upscale casino company announced a five-million-shareoffering one afternoon, citing expected demand from its addition tothe S&P 500, and then a few hours later upped the offering toeight million shares and priced it at $43.50 per share. Even priorto the 60% increase in the offering, which closed successfully afew days later, analysts were speculating that company chairmanSteve Wynn was being opportunistic in terms of raising capital,using its strong market position to better its balance sheet.

Along with the offering, Wynn amended its credit agreement,permitting it to from time to time to purchase loans outstandingunder the credit agreement. The repurchases are limited to $650million and all repurchases need to close on or before March 31,2009, according to the agreement.

Also Wednesday, Citigroup initiated coverage of Wynn Resortswith a "sell" rating and a price target of $29, saying it does notsee any catalysts for the stock until the second half of 2009.Citigroup analyst Anil Daswani said in a note to clients thatalthough Citigroup believes Wynn is the best positioned US casinooperator in Macau, this month's opening of the Encore in Las Vegasalong with visa issues and commission caps in Macau "leave manylandmines in the road ahead."