I DO NOT AGREE WITH THIS ONE I AM STILL LOOKING TO RE-ENTER GENTING SINGAPORE AFTER TAKING PROFITS AT 1.20 BEFORE THE RIGHTS OFFERING. IF YOU REMEMBER THE LAST SELL CALL ON THIS STOCK WAS WRONG (SEE OLDER POSTS) IT WENT STRAIGHT UP AFTERWARDS. RIGHT NOW, I WOULD LET IT SETTLE UNLESS YOU ARE HOLDING FOR LONG TERM OR PLAYING THE RIGHTS OFFERING, MY TARGET IS AROUND 2 DOLLARS LONG TERM.
0109 GMT [Dow Jones] STOCK CALL: Credit Suisse initiates Genting Singapore (G13.SG) at Underperform, sets S$0.90 target price. Broker says expectations for gaming company's new casino-resort on Singapore's Sentosa Island are high, thinks risks lie on downside. Warns first year casino revenues may disappoint with key swing factor the proportion of VIP spend vs mass market. Thinks VIP punters may not visit Singapore as frequently as Macau due to longer travel times, Macau casino tour operators may be deterred from setting up camp in Singapore due to smaller market size, licensing requirements. Notes shares up over 140% in past 12 months, says Genting Singapore now third most expensive casino stock in the world, most expensive large cap under broker's Singapore coverage. Says target price based on FY10 EV/EBITDA multiple of 15X, putting it at top end of Macau plays' range. Shares +2.7% at S$1.13.
Dow Jones Newswires
September 28, 2009 21:09 ET (01:09 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
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