0055 GMT [Dow Jones] STOCK CALL: UBS initiates Genting Singapore (G13.SG) at Sell, sets S$0.82 price target. Says although gaming company's soon-to-be-opened Resorts World at Sentosa (RWS) is an attractive asset, the shares look overvalued. "While RWS has the potential to become one of the most profitable casino resort assets globally, we think excessive optimism has been built into the stock's valuation." Says assuming 2011 Singapore gaming revenue of US$2.6 billion and 50% market share for RWS, the stock is trading on 13X 2011 EV/EBITDA vs Asian casino sector average of 9X. Warns even a modest disappointment in Singapore gaming revenue could have large impact on RWS's operating profit. "While there may be positive sentiment in the run-up to the opening of RWS, we believe the current valuation leaves little room for error." Shares closed down 3.4% at S$0.865 yesterday. (KIG)
PERFECT TIME TO START ACCUMULATING ON WEAKNESS I'M BUYING MORE ALL THE WAY DOWN, STILL IN PROFITS ON OVERALL HOLDINGS. DO NOT GET SUCKERED OUT BY SELL CALL. DO THE OPPOSITE IF YOU HAVING HOLDING POWER YOU WILL SEE A ONE DOLLAR STOCK OVER THE NEAR TERM...
GOOD LUCK!!
No comments:
Post a Comment