In the limelight - The Gaming Industry...

I have just posted about Genting two days ago and coincidentally, like I told my customers, this counter breakout with high volume yesterday. Today it hit a high of 0.98, one of the highest price recorded for the last two months. The reports on Genting Singapore and Marina Sands came in one after another.

Funny thing is that everyone expected Genting Singapore to drop due to the opening of Marina Sands but it happened otherwise, which leads me to wonder, is it true that market always work against our emotional decisions?

On the 28th April, Deutsche Bank upgrades Genting Singapore from hold to buy with a price target of $1.00 and J.P. Morgan analysed Genting Singapore as Overwight with a price target of $1.20.

Deutsche Bank upgrades Genting Singapore to Buy from Hold with a price target of S$1.00 (from S$0.91 previously). We believe the market is overly concerned about cannibalization risk (from MBS) and a smaller-than-projected Singapore gaming market size. Our data collection confirmed that the two-month-old Singapore gaming market is already US$2.2-2.4bn in size (annualizing current run rate), and with the recently opened MBS, the market will expand further. Genting Singapore’s share price has corrected 15.7% since the RWS opening in February (vs. STI’s +7.5% appreciation, and the valuation has fallen to 10x 2011 EV/EBITDA. While we expect Genting Singapore’s RWS to generate lower gaming revenue after the opening of MBS, an improvement in efficiency and continuous growth in the overall market should help mitigate some of the cannibalization effect. Even assuming RWS gaming revenue falls by 40-50% from the pre-MBS opening level, RWS should still meet Deutsche Bank’s forecast of S$1.7bn gaming revenue for FY10E. A more bullish top-down market approach of estimating the gaming market size at US$4.3bn (pegged at 0.3% of addressable GDP) would suggest SOTP of S$1.25/share assuming similar valuation methodology.

Understand from my customer that Marina Sands and Genting Singapore target different group of people(His company carries many of the distinguished brands in Singapore and they are in MBS). While Marina Sands target the upper end crowd, Genting Singapore is actually looking at the mass market. Reports actually did mention that the cannibalization is well contained and this two casinos will in fact, complement one another.


First Floor View of MBS


Marina Sands Night View

Photos Source: BofA Merrill Lynch Global Research

Casinos...

Many would have expect Genting to drop yesterday due to the opening of its rival company, Marina Bay Sands but Genting is still trading above its support, 0.835. However, it is pretty obvious that currently, it is on the downtrend.

There have been reports on Genting recently and many hold different views about this counter.

Genting is currently trading at 0.855.

Sands CEO says Singapore casino to break even in 5 yrs
http://sg.news.yahoo.com/rtrs/20100427/tap-sands-ceo-c3bb44c.html

Top 15 most recommended companies

Ezion Holdings LTD
Midas Holdings LTD
Parkway Life Real Estate Investment
UOL Group Ltd
Raffles Medical Group
Fraser and Neave Ltd
Yanlord Land Group Ltd
Frasers Centrepoint Trust
Cambridge Industrial Trust
Singapore Airport Terminal S
Sia Engineering Company
Olam International Ltd
United Overseas Bank
Wheelock Properties (Singapore)
Parkway Holdings Ltd

Pulses, The business times
The Recommendation was done based on fundamental analysis and before the announcement of the china property tightening policies. You may want to be cautious on property counters. Please contact me if you need more information.

Today... Zzzzz

There was't much movement from the market today except for the few counters, KepLand, F&N, SGX, City Dev, Bakertech. I'm surprised how sensitive the market is, re-adjusting and reacting to all the news... one after another... even the Hong Kong futures and Shanghai futures dropped today. It will be a challenge for STI to cross the 3000 mark for furthur upside.
Office is so quiet today.. usually the phones are ringing non-stop and people constantly shouting for breakout counters. I hear nothing today. It's amazing how I can still keep myself awake especially after a long night yesterday.

0818 GMT [Dow Jones] Rebound in number of blue chips pushing STI back to positive territory. Index +0.4% at 2980.89 after holding below water for most of session. Resistance expected at 3000. "For the blue chips, there are a lot of dividends to collect from them. I guess the big boys have taken advantage of the pullback earlier to accumulate," says dealer at foreign brokerage. Out of 30 component stocks, half still trading cum-dividend. Notable gainers include Keppel Corp. (BN4.SG), +3.4% at S$9.97, SGX (S68.SG), +2.4% at S$8.26, Fraser & Neave (F99.SG), +2.9% at S$4.99, Wilmar (F34.SG) +1.2% at S$6.88. Prices in broader market, however, still mostly lower, with market breadth at 1.5 decliners for every gainer. (frankie.ho@dowjones.com)

Just for Laugh!
There was a tremendous turnaround in the market today:

A stockbrocker who jumped out of a window on the twelfth floor, saw a computer screen on the seventh floor and did a U-turn.

BakerTech

Written by my colleague, Augustine Chai..
There was a champion stock yesterday, Baker Tech, surging almost 20% after lifting from Halt. They are going to sell one of their investment company PPL to YangZiJiang.
Now, from the book value of PPL to Baker Tech, the investment cost them an initial sum of $3Million Sing, while the re-valuation of $5Million Sing (figures are approx). But they are selling the unit for US $155million. while is about $210Million Sing. This will greatly yield the profits of the company. From Per share point of view, Baker Tech Net Assest value will be $0.47 per share. with cash value ofalmost $0.4 per share. Which is incredible. Considering their turn value per annum is only S$75plus million.
Taking all this into considersation, the counter run through the roof and perform really well. Unless the business does not go through, it is definitely worth buying at 47 cents.

Note that Baker still has existing 327 Million warrant non-exercise, but these warrant carry an exercise price of 32 cents, which will significantly increase the company cash position.

After factoring the warrant, the company will have a cash position of 40 cents per share if the deal go through.

Note that on 26th of this month, YangZiJiang will need to place a 10% deposit, if they fail to place the deposit, the deal will not go through and Baker Tech price will fall back to the 34 cents level.

Disclaimer applies

WHY invest in the stock market

I came across this article in the internet and I would like to share it with you guys...

Michelle Hogan
http://www.suite101.com/article.cfm/women_and_investing/17689

Well, let's face it, shall we? No one ever promised us a rose garden...or maybe they promised but...the statistics say that most women will not get married as soon or stay married as long as we expect to. Further, we have a nasty habit of living 7 to 10 years longer than men, and like it or not, 9 out of 10 of us will be on our own financially at some point in our lives. We are also more likely to spend more time out of the workplace raising children, relocating with a spouse, continue our education or starting our own businesses. This is all great. It's encouraged, yet it is highly underpaid, very hard work.

Did you know that 75% of the elderly people living in this country below the poverty level are women? Another nifty statistic is the fact that the average woman will spend 14.7 years away form the "workforce", compared to her male counterparts 1.6 years. Don't overlook that lost income. These are missed opportunities to contribute to 401K programs and other investment options.

Money is a touchy subject, though, isn't it. Couples fight about it, in laws quiz you over it. The American public has a misconception about money. Money equals power. Money equals image. Most respondents to a Worth magazine survey said that the feature they would most likely change about themselves is the amount of money they have. The quest for money transcends age, race and gender.
It seems odd, then, if money is so completely on our minds that very few Americans, particularly women, actually feel confident handling their money. Money and certainly investing seem to have obtained some mystical quality that only "they" can supercede. Did you know that only 5% of the country has 5 or more investments? And that 51% hold all their money in checking or savings accounts?

Let me throw a couple of interesting numbers at you. If you put $10,000 into an index fund right now, in ten years it will be worth about $19,700. If you take that same $10,000 and invest it wisely in the stock market, using a long-term approach, history has shown that your investment will swell to $51,600, and that's assuming you don't add anything to it between now and then! By investing for the long term, by trying to envision your life in 10 or 20 years you can have a portfolio generating higher and higher dollar profits.

Furthermore, women are ideally suited for investing. I say this because most women aren't afraid to ask for directions...and you'll need to dig for plenty of information when picking your stocks. Women also understand cycles...very well I might add. Pick a handful of stocks from each sector. Look at their charts from the past 5 years or so. Notice the changes. Notice the cycles. Now, while I don't recommend trying to predict a cyclical dip, remember that what goes up generally does come down, at least once in a while. Women like to shop. They like to hunt for a bargain, at least most women do. And while I don't recommend buying the cheapest stock, do your homework. You'll find some great opportunities to buy some great stocks. Don't be put off by "popular" opinion. If a stock looks stable to you, if you know the sector well, and if you have done enough research to belive it's a good buy, stick to your guns. It could pay off in the end.

Daily Report

The market was quite bad. It gap down and opened at 2975 following the Goldman Sachs news, SIA news as well as the drop from the US market last friday. The bank counters and air flights are greatly affected. Cosco was performing strongly with high volume in the morning but it couldn't hold and dropped later in the afternoon.

Due to Beijing tightening of housing and property policies, a lot of property counters were affected. Eg, C31, Capitaland and Yanlord.
Yangzijiang and Bakertech resume trading today.

STI dropped below the psychological level of 3000. Although the market sentiments is not very good now, however, the report from our house analyst mentioned that this does not signify a major correction but expect the corrrection to be around May-June, world cup season. (Honestly, as a woman, i cannot believe that the world cup can actually have such a major impact on the stock market) :>

Pullback in Singapore shares in wake of falls in U.S. stocks Friday sends STI back below 3000 mark; index last down 1.2% at 2972.30, immediate support at last week's low of 2953. Stocks in broader market just as weak, with most FTSE ST sub-indexes negative, market breadth at 6 decliners for every gainer. "The short-term (picture) is not so good, (although) short-term weakness could turn into a buying opportunity," says Phillip Securities technical analyst Phua Ming-Weii; adds "the long-term picture still remains positive due to the improving economies, better S&P 500 earnings quarter-on-quarter, and a favourable yield curve." Singapore Airlines (C6L.SG) top percentage decliner among blue chips, down 2.7% at S$15.10, on concerns over Europe flight disruptions. CapitaLand (C31.SG) off 2.2% at S$4.01 as prospect of slower home sales in China weighs.