Genting International slips into red with RM872m loss

KUALA LUMPUR: Singapore-listed Genting International plc, a subsidiary of Genting Bhd, plunged into the red for the year ended Dec 31, 2007 (FY07), with a net loss of S$381.5 million (RM872.4 million), compared with a net profit of S$56.9 million in FY06, mainly due to S$454.6 million impairment loss on goodwill arising from the acquisition of UK gaming firm Stanley Leisure plc, now known as Genting Stanley plc.

This resulted in loss per share of 5.08 cents, compared with earnings per share of 0.92 cents previously, Genting International announced to the Singapore Stock Exchange on Sunday evening.

It did not recommend any dividend for FY07.

Genting International said the increase in the UK gaming duty bands and rates imposed by the UK government beginning April 2007 had a negative impact on the profit performance of the group.

It said the UK government's move to implement a smoking ban in all public enclosed areas in England and Wales beginning July 2007 had also adversely affected the group's gaming business.

"The impairment loss of S$454.6 million on the Leisure & Hospitality segment resulted in the segment realising a loss from operations of S$387.9 million for the year.

"The investment segment also suffered an impairment loss, arising from the expiry of an option to purchase land in the UK, of S$18.1 million as well as a fair value loss on financial assets at fair value through profit or loss of S$1.2 million.

"Both the impairment loss and fair value loss resulted in the investment segment recognising a loss from operations of S$14.2 million for the year," it added.

However, the contribution from UK casinos had ballooned its FY07 revenue by 156% to S$749.4 million from S$292.9 million previously.

http://203.115.192.58/cms/content.jsp?id=c...7b2220-c2adac11


Gamuda share price slumps further



KUALA LUMPUR: Gamuda Bhd's share price slumped for the third consecutive trading day after its managing director Datuk Lin Yun Ling, who has helmed the company for 27 years, cut his stake in the construction-based company.

The stock fell another 26 sen to RM3.66, with 98.27 million shares valued at RM346.36 million done yesterday.

According to a Bloomberg report, Gamuda's market value has dropped almost a third, erasing RM3 billion since Feb 21 when Lin said he had cut his stake to 1.7% from 5.2%.

The report said construction stocks including rival MMC Corporation Bhd also tumbled as analysts speculated the sale by Lin suggested the country's building industry was poised to decline. MMC yesterday fell 14 sen to RM3.66.

The Edge Financial Daily reported yesterday that construction stocks had been adversely impacted by concerns over rising material costs, apart from news of Lin ceasing to be a substantial shareholder of Gamuda, with the construction index underperforming the Kuala Lumpur Composite Index.

Bloomberg cited a Citigroup Inc report that share prices of Malaysian builders were overvalued and may sink further.

Lin's sale "prompted fear that the prospects of the industry may be peaking," Citigroup analyst Wai Kee Choong, who has a sell on the stock, wrote in a report yesterday.

"Until we see more downgrades in target prices and earnings of construction companies to more realistic levels, it is still too early to bottom fish."

According to the Bloomberg report, Lin said he was still "optimistic" about Gamuda's prospects and some analysts said the government would award more contracts under a RM200 billion five-year spending plan stretching to 2010.

"I don't think the construction industry is about to go downhill," said Kaladher Govindran, head of research at TA Securities Bhd, who raised his rating on Gamuda to buy from hold after the stock slump. He said the sell-off "is not justified".

http://203.115.192.58/cms/content.jsp?id=c...7b2220-b12aacd1

Lessons from Warren Buffett's guru

Phillip Fisher says he doesn't want a lot of good investments but a few good outstanding ones.

Q: What can we learn from Philip Fisher?

Philip A. Fisher, one of Warren Buffett's investment gurus, is known for his philosophy on the qualitative aspects of selecting a good company for investment. Buffett learned qualitative analysis from him.

Fisher got his early education at Stanford Business School. He joined an independent San Francisco bank as a securities analyst in 1928, and founded Fisher & Co, an investment counselling business, in 1931.

According to his book entitled Common Stocks and Uncommon Profits, one of the most important investment philosophies from Fisher is Scuttlebutt, which he also calls "the business grapevine", in investing.

Scuttlebutt is the use of the business grapevine to analyse a company. We can obtain the information from customers, employees, suppliers, academics, trade association officers, industry observers, etc. This information is crucial in determining the character of its managers and the potential of the company.

A good company should exhibit unquestionable management integrity, own highly competitive products, be in a healthy financial position, have good cost control and be effective in its research programme.

According to Fisher, even though it is hard to know quality of management, a good management team should possess the ability to carry out day-to-day tasks efficiently and have good long-term planning. The management should also have high integrity and maintain good labour, personal and executive relations.

Fisher is a believer of growth investing. We need to select stocks that have great potential to grow their businesses. It will be a waste of time to hold on to stocks that have no growth potential. He believes that we can get capital gains by buying into these companies as their stock prices would go up in line with the increase in their intrinsic value.

It requires extensive research before you can get one. Fisher said: "I don't want a lot of good investments; I want a few outstanding ones." These companies can be bought at high historic price earnings ratio (PER) because there is a possibility that their stock price is reflecting good news you don't know about yet.

The growth companies should demonstrate strong and well-directed research capabilities. These companies should also exhibit an above-average sales organisation. Besides, they need to have a sustainable profit margin and good return on capital. Normally, these companies are the market leaders in the industry and have the advantages of scale.

A consistent and predictable dividend policy will provide the minimum returns to investors. Although high dividends are good for investors, to maintain business growth, high growth companies need to retain a certain level of profits for future expansion.

If a company is paying dividends with little retained earnings, it will cause lower reinvestment, which will affect its long-term growth. As mentioned earlier, the main returns to an investor is capital gain. He believes that buying into high growth companies will provide the capital gain.

When to sell

Fisher believes in long-term investment. According to him, the most important thing is to select the right stocks. "If the job has been correctly done when a common stock is purchased, the time to sell it is almost never," he said. However, if we select the wrong stocks, we need to sell.

We need to admit that we have made mistakes in our calculation. This attitude is important as not many retailers have the courage to admit their mistakes. Furthermore, we should not expect to be right all the time. We should be aware that we can make mistakes and we will make mistakes in our analysis, but more importantly, we need to learn from our mistakes.

Fisher said: "The chief difference between a fool and a wise man is that the wise man learns from his mistakes, while the fool never does."

Fisher will only call a sell on a stock when the company or industry has changed and the stock no longer qualifies as a growth stock or a better prospect is available elsewhere. He will not sell a stock just because a stock appears to be selling for a significantly above average PER or because the stock price has increased.

He believes that most investors always make mistakes by selling their stocks with the hope of buying them back at lower prices. In most instances, the investors miss the stock when it recovers.

http://biz.thestar.com.my/news/story.asp?f...80&sec=business

Sentosa might have alot of discrepancy like providing transport(bus,taxi,car or cable car etc) in and out 24 hours for tourist as they wish. alot of tourist depends on mrt, public transport etc and driving a car is expensive in SG. SG is discouraging Singaporean from gambling by enforcing SG120 for entering the casino with no refund back per visit etc. Majority of adults dont enter the casino when they bring their kids around, troublesome and their kids need to be taken care off. Another disadvantage for themepark is only target on kids and very expensive due to currency exchange rate , the percentage for adults is minimum. Only casino the percentage is greater for adults, as long as they bring their kids around,its a burden to them and is avoiding the adults from going to the casino for sure.

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Added on March 3, 2008, 11:19 amthe last big drop genting lowest were RM6.20

This post has been edited by ankw: Mar 3 2008, 11:19 AM

Genting now RM6.40 going down

Market is still unstable and alot of uncertainty. It may be a technical rebound and setting a big trap for market players where as what ever news already out. GE results may affect the market, by hook or by crook parties (as u know which it is) must win or else alot of shit/ transparency/hidden of alot of companies will surface.

Digging shit out of companies is hard when everything is protected unless there is a major reshuffle of management team.

For genting if opposition wins in pahang, the casino located at pahang will be closed due to opposition rules and regulations (no gambling) and will be shifting to selangor side. it may affect the group profit result. Lose or win also have side effect.

Heard there is a form company(Reserve $$$) by govnt to comein to support the market if a major market crash, is yet to have not comein yet. Wait until the CI drop to 1180 level, which is along way to go. the support comes as history always repeat.

Just look at the price at the previous year at feb 2007(CI How many points) and how much the value of the market share and compare with the price now (if really do yr detail homework well).

Long way more to drop will soon be seen if world inflation, recession or sub prime surface for sure.

Today someone earn yr $$ and tomorrow someone takes it from u in the market (if not careful)

Major Good news have already all out for certain companies, what to expect more any potential/possibilities that it may go up more. the percentage is minimal. Greed and people always like to try luck (Gamble) is a problem. (Majority Win little Loss Alot). Big fish always eat small fish no matter how clever or smart a person is also die. Have to look at all angles of news or surrounding news and history in order to go forward.

There is alot of level support, if it breaks there is another level of support until the final level then only go in in order to be sure win player.

Oil and consumer price keeps goin up and never come down at all.

After election and the olympics, even worst no news is bad news. Unless can organize more major events or takeovers of companies in the world.

NO one can forsee ahead and unless someone can visualise what will happened ahead.

if nothing happened will be a quiet year ahead or miserable year after olympics alot of companies will have no jobs and china market will go down. affecting alot of countries and jobs as well.

People/country always wants face in order to sustain anything but must have the power to do so in order to perform or maintain it for a long time. Chain reaction will starts. everything will come to a full circle. Concept is the $$ Today is mine tomorrow is yours until one have no stamina or bullets to collect the $$ back with interest (Total Loss/loss in the end)

This post has been edited by ankw: Mar 7 2008, 09:25 PM

Gamuda Dato lin is a smart guy, what for want to hold shares, want $$ better since the price went up so high already. Companies will issue Shares to him in future. The Company also not his, just working as a appointed MD. When will be the more right time than now to sell since the price have gone up alot now. See cannot eat or take rather stupid right. sell take $$ first

now is a best time to sell since the price when up alot, age is catching up and very high price already. the purpose of buying shares is to make $$ not holding them. when come down can buy again. earn second round.

waiting for another project double tracking 2 for good news

This post has been edited by ankw: Mar 7 2008, 09:52 PM

Will the interest rates of borrowing goes up in future? if it goes up its a bad sign for those companies borrowing as interest will be very steep for the companies eg genting (big borrowings)

as the price for genting is RM6500 * 5(b4 spilt) = rm32500. price before the sentosa news review. Gambling tax will go highers in future. unless opposition win.

Still high not really a drop yet according to present price.

This post has been edited by ankw: Mar 7 2008, 09:54 PM

DOW have not really drop yet as well as China market sustaining for the olympics games (image) Be careful

Costing of Projected/incomplete projects secure or insecured do not count in the books yet until it completes and makes profit for companies. Borrowings and costing is unpredicted due to the ups and down of the bank interests and global economy and political stabilty of the country.

Doesnt mean having project or getting project is good (show only that it have job secured and stability and not making profit yet). its good until is start making $$ in years to come. who knows what will happened then.



This post has been edited by ankw: Mar 8 2008, 02:05 PM

DOW JONES INDUSTRIAL AVERAGE IN
(DJI: ^DJI)
Index Value: 11,893.69
Trade Time: Mar 7
Change: Down 146.70 (1.22%)
Prev Close: 12,040.39
Open: 12,039.09
Day's Range: 11,819.69 - 12,094.21
52wk Range: 11,508.70 - 14,280.00

Economic Outlook Darkens
Posted Mar 07, 2008 11:01am EST by Aaron Task in Investing, Recession
Related: DJP, ^SPX, ^IXIC, ^DJI

Crude's soaring, the dollar is tumbling, the economy has hit a wall, and the stock market is in retreat as the subprime crisis goes global. The best investors can hope for is that this is as bad as it gets.

This morning's grim jobs report and the latest round of hedge-fund blowups suggest there's more shoes to drop. Fears of 1970's style stagflation can't be dismissed and global policymakers aren't in sync on how to combat the credit crunch.

But all hope is not lost. For one, there's actually some benefits of a weak dollar, unless you're a big holder of Treasuries: In the short term is makes US multinationals more competitive in international markets. Over the long term a weaker dollar benefits the stock market by increasing the relative value of corporate earnings. In addition, a weak dollar is good for 'real assets' like commodities and real estate.

More importantly, perhaps, a weak dollar helps debtors -- like the US government and homeowners -- because it devalues their long-term liabilities. Think about it, if your monthly mortgage is fixed at $2000 per month and the value of the dollar falls, over time that $2000 payment is worth less -- assuming, of course, salaries rise with inflation and you can keep your job...

Wall St Week Ahead: Stocks may fall anew on recession fears

NEW YORK, March 7 (Reuters) - U.S. stocks could face a further pounding next week as evidence mounts that the economy has entered a recession and problems in the financial sector accelerate.

Next week's economic agenda is relatively light, until Friday, when the Consumer Price Index will command attention, especially with oil's jump this week to a record over $106 a barrel and the surge in other commodity prices.

But anxiety about inflation will take a back seat to the recession fears rippling from Wall Street to Main Street after Friday's government report showed employers cut payrolls for a second straight month.

At the same time, the financial sector has been pummelled by news showing further signs of troubles related to the subprime mortgage market.

For one, concern about the survival of Thornburg Mortgage Inc (TMA.N: Quote, Profile, Research) increased on Friday after the mortgage lender said it has $610 million of margin calls outstanding as of March 6, an amount exceeding its available liquidity.

The negative news trend is showing few signs of letting up, and could mean further losses for stocks.

"The sentiment right now is extremely bad," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey.

"On the economy side, today's numbers on the labor market probably confirm the U.S. is in a recession," he said, though he added that much uncertainty still exists on the subject.
"On the credit side, we're seeing further stress on mortgage tightening and fallout from that," Praveen said.

S&P 500 WITHIN BEAR'S REACH

Stocks ended lower on Friday and notched their second straight week of losses.

The S&P 500 .SPX is now off about 17 percent from its record closing high set back in October, a drop that puts the benchmark gauge a shade away from crossing a threshold that market technicians consider to be the onset of a bear market.

On Friday, the Dow Jones industrial average .DJI fell 146.70 points, or 1.22 percent, to end at 11,893.69. The Standard & Poor's 500 Index .SPX slid 10.97 points, or 0.84 percent, to 1,293.37. The Nasdaq Composite Index .IXIC dropped 8.01 points, or 0.36 percent, to 2,212.49.

For the week, the Dow lost 3 percent, the S&P 500 shed 2.8 percent and the Nasdaq declined 2.6 percent.

HOPES FOR A FED RESCUE

If there is to be any reprieve for the stock market, it could come from signs the Federal Reserve is contemplating an emergency interest-rate cut, analysts said.

The Federal Reserve is scheduled to meet on March 18.
But this week, stocks sank below levels seen on Jan. 22, when the Fed instituted an emergency rate cut to ease credit market strains and revive the economy.

Just minutes before the release of Friday's jobs report, the Federal Reserve announced measures to address heightened liquidity pressures in term funding markets, a move the Fed's staff said was a reaction to recognition that market deterioration had accelerated recently.

"Stocks and bonds are both begging the Fed to cut at least 50 basis points, and perhaps as early as next week. Investor risk aversion is spreading and the Fed can see this in the price action of all asset classes," said Tom Sowanick, chief investment officer of Clearbrook Financial in Princeton, New Jersey.

WANTED: EARNINGS REALITY CHECK

Next week's earnings schedule is short, but some quarterly results are expected from retailers, including American Eagle Outfitters (AEO.N: Quote, Profile, Research). For a full earnings diary, see [RESF/US]

Many analysts have said earnings estimates are overly optimistic and need to come down, further adding to worries for stock investors, who continue to see stocks as a bargain.

As the result of an eroding earnings outlook, stocks are slightly more pricey now than they were at their previous lows on Jan. 22, with a 12-month forward price-to-earnings ratio at 13.03 now versus 12.93 then.

"It's likely that first-quarter earnings are going to be troubling for a large number of companies," said Sasha Kostadinov, portfolio manager and research analyst at Shaker Investments in Cleveland, Ohio. "The market has some valuation support here, but the near-term fundamentals are a bit sketchy."

SKYROCKETING OIL, SINKING DOLLAR
Another source of concern for investors is oil, which has repeatedly hit record highs.

Another worry is the dollar, which is testing record lows against the euro and multi-year lows against the yen.

On Friday, U.S. oil CLJ8 fell 32 cents to settle at $105.15 a barrel, but only after climbing to $106.54 -- the highest level since the New York Mercantile Exchange launched crude oil futures in 1983.

While higher oil prices have helped stocks by lifting the energy sector, they remain an overall negative because they put an extra burden on consumers and businesses.

Generally weak February sales from major department store chains, including J.C. Penney Co Inc (JCP.N: Quote, Profile, Research), on Thursday added to concerns that consumers are cutting back spending.

ALL EYES ON CPI

On the economic agenda, the international trade deficit for January is due on Tuesday, followed by weekly jobless claims and February retail sales data, as well as February import and export prices, all due on Thursday.

The Consumer Price Index for February, expected on Friday, is forecast up 0.3 percent for the overall figure and up 0.2 percent for core CPI, excluding volatile food and energy prices, according to economists polled by Reuters. For a full economic diary, see [ECI/US]

"CPI is going to be an important number," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
The impact of rising gasoline and food prices on consumers' inclinations to spend money also will be assessed on Friday, with the preliminary reading for March of the Reuters/University of Michigan Surveys of Consumer Sentiment.

In Mendelsohn's opinion, the lighter-than-usual economic agenda could keep the stock market stuck at current levels.

"We're at very critical levels here. This is an area where if we're going to mount a rally, we've got to do it. But I'm not sure we're going to do it."

http://www.reuters.com/article/marketsNews...20080307?rpc=44

This post has been edited by ankw: Mar 8 2008, 02:47 PM

genting at rm6.10

CI -97.38 (1198.38)

better wait after lunch drop even more

This post has been edited by ankw: Mar 10 2008, 10:05 AM

just some technical. it wont last/hold long as can see. still alot of uncertainty. better becareful. futures is down again as can see. hit and run play

struggle of power still in progress in the country. no directions yet. forming new govnt. wait for clearer pictures

This post has been edited by ankw: Mar 10 2008, 10:43 AM

CI -130.01 (1166.32)

ANother big drop bound to happen tomorow. free fall. dont hold position. foreigner sell off. unstability

This post has been edited by ankw: Mar 10 2008, 03:05 PM

CI -137.80 (1158.43)

dropping fast

minor technical. still alot of selling. margin call. becareful during of market closing.

alot of investor cannot see the road anymore.

another wave of selling, probably father of tsunami is coming

the volume is big and not healthy. alot of foreigner is selling fast

New state governments do not have to be bound by contracts signed by th previous administration especially if they do not serve the public interests. Under the contracts act 1950, contracts that have been signed in bad faith or those which are of no. benefit to the community can be declared void and against public policy. these can be terminated after proper and due investigation. Furthermore the benefits received by the parties concerned can be disgorged under the principal of contracts laws and in some instances amount to criminal offence of cheating. Hope the new state government will gazette and re-zone all open spaces and plug all loopholes to preserve and protect the assets for future generations.

Projects under taken various company may be review by the state government again. Transparency in local and state governments and the cleanup of corrupt practices in the state.

careful of those companies which have projects and have awarded. it may have alot of hidden discrepancy behind to be review. Special audit to be enforce.

This post has been edited by ankw: Mar 10 2008, 08:40 PM

dont hold construction shares. local projects will be review to those awarded and not awarded.