Casino magnate Steven Wynn has stepped down from the helm of Wynn Resorts, Limited (NASDAQ:WYNN) in the wake of claims he subjected women who worked for him to unwanted sexual advances. WYNN stock has dropped 18.6% since the allegations surfaced late last month.
The company said Matt Maddox, its president since 2013, will assume the chief executive role. Maddox, who has been with Wynn Resorts since it was founded in 2002, is seen as a firm hand and is widely viewed as a favored protege of Wynn, according to Reuters.
InvestorPlace contributor Nicolas Chahine last week wrote that the allegations-related drop in WYNN stock is a “prime opportunity.” “Still, the sharpness of the selloff may be overdone and therein lies my opportunity to enter this successful casino trade. Luckily for WYNN stock investors, this dip comes from a high level.”
Prior to the accusations being published in the Wall Street Journal on Jan. 26, WYNN stock had risen more than 68% in the previous 12 months.
“Yes, I want to be long WYNN, but I am not brave enough to risk $175-per-share here without knowing the whole story, wrote Chahine. “Still, I am willing to own the shares if it falls an additional 20% in the next few months. This is a bullish market and in this economic environment, I think that casinos will prosper regardless of who is leading their boardrooms.”