They are gamblers but for them to assume calculated risks means something...
I suspect that they are managing their excess cash that is pending deployment for the various high profile overseas projects.
Unfortunately its a reminder of the Lehman experience... risk mgt is one thing but actual outcome could be different when there is volatility...
best stay simple and focus on real business
(05-08-2015, 10:11 AM)cfa Wrote: [ -> ]They also bet on derivative products ?
I prefer Genting HK to Genting Singapore. Vested in the HK one -- Genhk. Before Genhk disposes it's stake in US listed NCLH, recently, its NCLH was almost its whole mkt cap.
Gentings FY15Q2 Results:
http://infopub.sgx.com/FileOpen/GENS%20S...eID=364797
Question: There was a
Profit Guidance on 4th Aug due mainly to fair value loss on derivative financial instruments as a result of unfavourable market conditions and unrealized foreign exchange translation losses.
However, based on the Results, Revenue fell by $172mil, Fair Value Loss on derivative financial instruments fell by $97mil, and unrealized foreign exchange translation losses increased by $70mil.
Hence, shouldn't the profit guidance have been for a decrease in revenue, rather than on investment losses?
DB have a Target Price : 0.50.....their Reseach or Analyst juz want to be famous for the wrong reasons !!! And last time they had a crazy Target Price for WILMAR too !!!
http://www.channelnewsasia.com/news/busi...47206.html
Shows how much dependence Asia Gambling Industry has on China VIPs. Lastest FY results shows how much Gaming revenue has fallen down and RWS is not exactly a hit like many have predicted. Tickets are now always selling at a discounted price of s$50 instead of $80. In fact, Genting is very honest to show that ordinary shareholders would have made a loss in 4Q after deducting perpetual shareholder's distribtuion (something which Hyflux quietly hid behind in section 6 and not in the front page of their P&L statement)
For me, Genting is still slightly above valued, but if it goes to about 50 cents, I may consider buying it
There is probably not much meat left to short this counter after losing most of its market value. Those that did made a killing based on sound judgement
The best time to go long on this counter is... never. This company is wrong in just too many ways. Unfortunately it is also one which is widely held by locals due to the ridiculous number of shares issued and the fact that it is a component of the STI.
http://www.straitstimes.com/singapore/re...bt-problem
firing 400, imo, is very kind given that revenue is declining and yet staff cost is escalating over the past 2 FY
12 months EPS to ordinary shareholders is only 0.62 cents, giving it 119 x PE. Not a good number to measure because Genting's profit attributable to shareholder is now a very low figure; Most of the profits are being distributed to perpetual securities holder as distribution.
While USS tickets is priced at 80+ per pax, it seems there is countless promotions which is giving discounted tickets. Even on Carousell (my unofficial price ticket tracker), the selling of USS tickets has fallen from 60+ to 50+. Who says there is inflation in Singapore
Quote:[i]TOKYO: Japan's parliament passed a law on Thursday to legalise casinos, ending 15 years of political argument and opening the way for projects that combine high-stakes gambling with hotels, shopping and conference space.
As few as three casinos could generate nearly US$10 billion in net profit annually, Daiwa Research Institute estimated, equivalent to 0.2 percent of Japan's gross domestic product.
Still, casinos will not be in operation until 2022-23 at the earliest, gaming executives have said. Fresh legislation is needed within a year to set out details on regulation, tax rates and dealing with social ills such as gambling addiction and organised crime.
http://www.channelnewsasia.com/news/busi...68208.html[/i]
Let's see if Genting Singapore will continue its current rally!
http://infopub.sgx.com/FileOpen/GENS%20A...nt%20-%20S$1.8%20bn%20Perps%20-%20Notice%20of%20Redemption.ashx?App=Announcement&FileID=461685
Full redemption of its perpetuals. A good sign on the company's cash flow; it also means potentially more distribution are avaliable to ordinary shareholders.