Company Conference Calls

You can sometimes learn things about companies when you listen to earnings calls. Here is the latest from Steve Wynn ($WYNN).

At 4:05 Wynn says, “Optimism in China and Pessimism in America”. He is referring to his casino business.

But later at 45:06 he reflects on Occupy Wall Street and big government. Among other things, he says (47:07),

“I am watching my employees standard of living drop off because of deficits. I think that the American public is beginning to make the connection between deficits and their own loss of the standard…

I say right now that the Democratic agenda of spend and bribe the public has bankrupt this country, and until it stops, the citizens of this country are in for more hard times. And fancy speeches aren’t going to change that. Only a fundamental realization that citizens are going to have to take real, sophisticated responsibility for how we allocate the resources of this country.”

I am watching my employees standard of living drop off because of deficits. I think that the American public is beginning to make the connection between deficits and their own loss of the standard.

People are being paid in dollars on the way to 7 cent dollars, and answer though I have given two cost of living increase toss my employees, I’m upgrading losses in America, plus I’ve been able to get some money from the cap. I have not been able to keep up with the effect of deficits on the living standard of my employees.

The net result of all of this is frustration, anxiety, and anger. You’re seeing that on Occupy Wall Street. You can see it taken to the next level in Greece where people are trying to break into a parliament, primarily controlled by the unions. There comes a moment when the population realizes that it has to stop and sometimes it takes a form of tax the rich people which is, you know, a reflection more of a lack of understanding of how the economy works.”

After listening to this call, I don’t think there is any doubt over where Steve Wynn sees growth, and where he will be investing his shareholder money.

The opportunity costs of investing in Nevada-which has a 0% tax rate-are too high. Why? Regulation, big government, and poor fiscal management by government agencies.

Some earnings calls are enlightening….

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