Yes, I am not disagree this if look from this perspective.

But as I said before, share market primary concern is about company earning ability, asset is secondary. Asset only become primary when those asset is going to be liquidated and distributed to the shareholders.

You buy a company share and become a shareholder, the primary objective is the company can earn profit which you can have a share of it.

---

Added on February 12, 2010, 3:25 pmLet say for eg. Genting EPS is 50 cents.

Out of 50 cents,
20 cents is actually contributed by GenM,
10 cents from GenP
5 cents from GenS

Genting alone 15 cents.

So Genting financial book will report as 50 cents EPS.

This post has been edited by cherroy: Feb 12 2010, 03:25 PM

yup, I think about this issue before whether Genting has his own debt or others business drop it down.......

But currently the palm oil's price is going up by this year, while the crude oil price will maintain at USD70-80 according to US. It should benefit the power generation business..........anyway according to previous quarter report, plantation and power generation are making profit

---

Added on February 12, 2010, 3:32 pm Actually I dont understand what is "Book"
Eventually Genting EPS is 50cents right?
those 35cents contribute by GENM/S/P still consider as profit, so we can buy these company with cheaper price right?
or genting's price should adjust back to RM7.14 above?


This post has been edited by StupidGuyPlayComp: Feb 12 2010, 03:32 PM

Power generation is always generating profit just that growth is limited sorry for repeating the same thing

Of course their balance sheet do matter on their valuation so actually this type of comparison can give you some rough idea but cannot follow 100%.

However, as i said i prefer to invest in a company which does not involved into too many sectors as it may become non profitable in the end.

I was just wondering, mother shares ususally drop when the rights begin trading. But will the mother share keep dropping on the second day of the trading too? Because I wanted to buy FRONTKN, the price now is 0.145, very cheap. Just wondering whether it will drop futher

My next purchase: Scomi

I think Cherroy reason on earnings ability of the company is valid. The company earnings ability is more important than its underlying assets. In addition, the computation done is through the use of Market Value and the bulk of the value come from Genting Singapore. This is computation is base on the underlying assumption that the market have price Genting subsidiaries and associates correctly, which is not always the case. Genting Singapore market cap is bigger than Genting group itself. For a company that do not earn much yet, it is a very high valuation. If Resort World@Sentosa did not turn out as good as expected i.e. loss-making business, it can just drop to closer to its net asset value which is about $0.27. That will wipe off all the Genting value if you compute it base on market value.

Market value is appropriate only when the company is price correctly by the market. The current valuation of Genting Singapore assume the Sentosa resort will be a huge success.

Another thing about using underlying asset to compute is that if the management did not unlock the value of its asset, it is useless to the shareholders as it is not put into good use. There are companies that have huge asset value, stocks like Keck Seng, if the company revalue all their properties and land, can be as high as RM10-RM15 depending on your valuation. But yet, the company is trading at Rm3.89. This is because the company is not unlocking its asset value.

Disclosure: I own Genting and I do hope that the valuation of GENS is correct

Palm oil business is more like as same as last year with a little bit increment.

Actually, as minoirty shareholders, we can or should only look solely on profit made which as shareholder can get piece of it, while Genting own how much GenM and how much GenM is, minority shareholder cannot do anything about it.

Just ask a question, do you as Genting shareholder gain any money, or enable Genting pay special dividen if GenM share price shoot to RM10?
The answer is no, although Genting valuation based on GenM also goes up, until you unlock or liquidating it, there is no actual profit or money being made.


Technically, yes, you can buy Genting indirectly own GenM at cheaper price, but in real term market only concern about how much Genting's profit is, as Genting is not going to liquidate GenM anytime soon, while Genting as a group still have other commitment and debt to be servicing as well.

So that's why it is not recommend to buy Genting if you wish to own GenM. Although technically, yes, buy 10 shares equally own 5 share of GentingM, but this is all on paper term only. In real sense, not so easy or directly.

This post has been edited by cherroy: Feb 12 2010, 03:51 PM

I more understand by this explanation, you mean the GENM price up or down dont effect the Genting's profit.

but can it be effect the Genting's share price while GENM(RM10) is his anak?

Will it be this year??

I bought it as observed in the chart, so its purely TA.

After he says scomi, order for buy jump 5000 lots within minutes...

lol big sharks lurking in LYN

hi guys! before i leave for airport, i just wanna thank you all for all the advice and teachings throughout my time in LYN! THank you a lot peoples! and may this year be a good year for everybody! Happy chinese new year! ill keep in touch when i am in australia! take care everybody! =) and my last buy before i leave, YTLPOWER at 2.14 take care!

Good Luck and all the best to you! Enjoy studying in Australia. Happy CNY! Take care!

bon voyage Miki.... Happy CNY too...
haha welcome to YTLP

lol what makes you choose ytlpower? take care.

This post has been edited by darkknight81: Feb 12 2010, 04:12 PM

Bye Mate! Have a bonzer time down under!

Wipe off by another 7000+ sell order... from OSK
Joking only...

This post has been edited by htt: Feb 12 2010, 04:17 PM

OSK 1.24 HUAT HUAT HUAT!

Happy journey!

Still must buy before leaving...