Genting Singapore

[KopiKat]

CityFarmer,

That's what I like about you... so hardworking...

Some comments to add to my previous post,

1. Genting's casino license is renewal in 3 years' time commencing 6-Feb-13 (SGX Annc). I suppose in 3 years' time, we'll see a special situation where the share price may weaken on this uncertainty of license renewal.

2. Using FY EPS = 4.81ct, PE = 30.87 @ $1.485 (Friday close). I was expecting Q113 results to show a recovery in their earnings, projecting it to be 5~10% for the year and was therefore previously willing to buy at such high PE for this potential 'Growth' recovery story. But, with Q113 EPS = 0.95ct, the PE (using latest 4Qs) = 36.4. It's also not a Yield play as Div = 1ct ie. Yield = 0.673%

3. The huge Cash = ~$4Bil is a double-edged sword. Altho' it puts them in a good position to take advantage of any new opportunities eg. Japan casino liberalisation, take note that it was raised from their Perpetual issues ie. they have to continue paying interest on it, even as it sits idling in the bank earning tiny returns.

4. Genting is widely covered by many analysts. The daily trading volume is very huge. The nos. of Short Selling is also very large. This can only mean that there's a very good degree of Price Efficiency. Any price inefficiency will likely be corrected within a very short span of time.

5. I wonder about the relationship pertaining to the strategies between Genting Bhd, Genting Singapore and Genting HK. For that adventure into Australia to disturb Crown casino, all 3 were involved. But, for the US adventure, looks like only Genting Bhd.

The above is not meant to dampen any interest in Genting but rather, to be sure to keep your eyes open if you intend to get vested.