Wolf Money(Genting Singapore)

-

 

(Image credit: Genting Singapore)

The below article is for educational purpose only. Kindly refrain from taking any action. It shouldn’t constitute as an investment advice. Please read the disclaimer.

I took a small position in Genting Singapore after the share hits 52 weeks low today. There are a lot of negatives surrounding Genting Singapore. 

1.) Casino license renewed for 2 years instead of usual 3 years due to unsatisfactory performance.

2.) Poor Q3 results because of falling tourists numbers into Singapore, primarily Chinese tourists, and the poor win rates.

3.) The huge capex needed for rejuvenation of the RWS Sentosa to a tune of $6.8b over the next 8 years.

4.) Competition from other casinos in the region. 

I find the entry level attractive given the 5.3% dividend yield, valuations of Genting Singapore has fallen to its lowest level since listing with exception to sharp and short drop during covid to 50c. The stock is trading at less than 1.1x p/b which compared favourably to those gaming stocks listed in Hong Kong and US. The company is in net cash position with close to 40% of the current market capitalisation in cash. 

(Trading near its 15 years trading range)

Have all the negative news priced in? I don’t know, but I am taking a small position to test my theory. I hope my portfolio is not the bin centre for fallen angels. 😅

More tourists from China will be exploring South East Asia given it is a welcoming part of the world for all nationalities. Given Trump election’s win, more Chinese will explore other parts of the world due to safety concerns. The new attractions like Singapore Oceanarium and Minion land are slated for opening in the first quarter of 2025. More visitors are likely to visit RWS@Sentosa.

More detail at the end of month portfolio update. Thank you. God Bless. 

Please consider following us on telegram for the latest update on Lone Wolf investor by clicking on the link below. No form filling, no payment required, no collection of data, no data mining, no hard selling, no obligation. 

https://t.me/joinchat/oCgkD3sQFRMzMWM1



Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.

Comments

Post a Comment

Popular posts from this blog

Wolf Money(Portfolio update for end April 2024)part 1

-
Image
  (Image credit The Star Media) (Swamp of people going into Shenzhen) Bye Singapore! Hi Malaysia, 2026 This write-up was inspired by a video posted on YouTube. The video talks about Hong Kong hollowing out by Shenzhen. The recent phenomenon of Hong Kongers going to Shenzhen to play, eat and stay is gathering pace with close to 2 millions making the crossing to Shenzhen during the recent Easter Holiday. That is close to 30% of the current HK population leaving for Shenzhen. With deflation taking root in China, things are much cheaper in Shenzhen. The poor economy in HK is another push factor with Hong Kongers trading down their consumption. One traveller from HK mentions his spending in the mainland only cost him 1/3 of the usual price he paid in Hong Kong. Hong Kongers are shopping at Sam’s Club in Shenzhen buying everything from groceries to electronics. The commentator interviewed restaurants and shop owners in HK, most experienced a 30% drop in sales during the holiday.  *T...
Read more

Wolf Money(The death of the Singapore Stock Market-My view on the final offer for Great Eastern Holdings)

-
Image
(The Death of the Singapore Stock Market) Great Eastern Holdings(extract from end of month portfolio update) Today we are here to attend the funeral of the Singapore stock market. Besides the low valuation suffered by our market participants, investors of our market have to navigate the complexity of low ball offers from majority shareholders. One would expect a local banking giant to lead as a beacon for good corporate governance. Unfortunately, they have decided to turn a blind eye and join the dark side of the forces, blatantly ignoring the IFA report to pay a fair price for GEH. I could have walked away quietly by accepting the offer for a gain in excess of 40% in 3 months, but I can’t walk away without my conscience pushing me to express my thoughts on this whole takeover saga. I started the journey by supporting Chin Woo. His leadership is top-notch. I think most minority shareholders will agreed, without Chin Woo’s effort, the minority would have been in a much inferior position...
Read more