is this all due to the momentum of the genting singapore q2 reports and also the genting new york thinggy ???

Time to sell?

Bro...genting malaysia is NOT Genting Berhad...

Genting Berhard is the one at RM8 +

Genting Malaysia (Resort World) is at RM3+


WRong thread la bro..

This post has been edited by coconutzz: Aug 17 2010, 02:28 PM

wow, GENTING almost up by RM1 in 2 this week..

for genm there is still lag behind alot compare to the rest of the group companies that when up alot.

genting bhd price rm9 b4 split to 5 is rm45

genm price rm3 b4 split to 5 = rm15

so genm price should be half of genting bhd price, no matter what. there will be a wave coming sooner or latter or even a hidden surprise whereas alot of stockist already have little or even no interest in this counter due to very lag, slow etc. the playup on the other group counter already when up alot. the downside is very limited for the counter

some investor even have no patience to wait any longer

I don't remember GenM ever splited before

few year back tendering for sg casino. when that genting were rm30 and resort were rm15

This post has been edited by lowyat888: Aug 17 2010, 07:58 PM

Actually, GENM is a more profitable company than Genting Bhd pre-Genting Singapore because without GENS, Genting is just a collection of a 50% interest in a super profitable casino (genm) plus some good power and plantation business. In that sense, GENM should be valued higher than Genting Bhd in absolute terms. In per share terms, I have no idea as the outstanding shares number would be different. But, with GENS, Genting profitability should exceed GENM to the tune of 80-100+%. So, logically, the valuation should only be 80-100% more expensive in market capitalization terms. But, it seems Genting is valued more than this range.

There is a reason for the lagged. The reason is the bad deployment of cash flow. There is no doubt that GENM is a fantastic cash flow generator. It is the most profitable casino property (note: not company) in the world. However, as an investor without control of a company, to do well, we need to identify company who do both 1) Generate fantastic cash flow 2) reinvest the cash flow to high ROIC venture or return the cash flow to shareholder. GENM did (1) very well. But on (2), the cash flow is used as a vehicle to subsidize unprofitable venture ( Walker Digital, Gen UK) and as an emergency piggy bank (Wisma Genting deal). So, the cash flow generated is wasted, that is not much difference from NOT generating any cash flow in the first place. So, the valuation is bad. Most investors think that this company is undervalued because they focus on (1) but not (2). LKT is good in doing (1) because the topline and bottomline in GENM do grow under his tenure at a decent pace, but, on (2) he is well..not that good.

It seems that GENS will be the vehicle of choice for the Genting Group as a whole right now as the strategy seems to be using it to bid for profitable casino projects in Asia rather than bidding on a group basis i.e. both GENM and GENS cooperating. Perhaps, the Lim family are diversifying their wealth into some more political stable country and do not want too much exposure in Malaysia. Hence, GENM may continue to play this emergency piggy bank role.

This post has been edited by the snowball: Aug 17 2010, 08:53 PM

PETALING JAYA: Genting Malaysia Bhd’s unit Genting New York LLC, which has won the bid to operate a video lottery terminal facility in New York, plans to invest US$1.3bil (RM4.19bil) in the project.

It had earlier been speculated that Genting New York had won the bid, but the deal was “not fully in the bag” yet, pending approvals from the city’s top politicians.

A source close to the company said that Genting New York had signed the agreement last week but only made the announcement in New York yesterday.

According to a copy of the proposal submitted by Genting to the New York lottery authority, Genting New York will pay a licensing fee of US$380mil (RM1.22bil), above the minimum US$300mil (RM966mil) required by the state.

Genting New York intends to spend a further US$350mil to develop the facility, which upon full completion will span 413,000 sq ft and contain more than 4,500 video lottery terminals or electronic slot machines.

Dubbed Resorts World New York, the proposed three-storey facility will also contain several restaurants, water features, an outdoor terrace connected to the Aqueduct racetrack which will be able to accommodate up to 10,000 people and a 2,200-bay car park.

Genting New York aims to complete the entire development within 12 months from the date it obtains formal approval from the state to proceed.

As part of a wider development plan, Genting New York is also proposing to build three hotels of differing standards, shopping, recreation, spa and other resort facilities at a total cost of US$650mil (RM2.09bil). That will take the proposed outlay for the entire project to over US$1.3bil.

Meanwhile, Genting Malaysia has also been on a roadshow ahead of its EGM to drum up support for its plans to acquire Genting Singapore plc’s whole UK casino operations for £340mil (RM1.7bil).

The EGM is on Aug 24, and Genting Malaysia may want to ensure it has enough support to ensure the deal goes through.

Presently, Genting Bhd owns 47.33% of Genting Malaysia. On Tuesday, Genting Malaysia rose to its year-high of RM3.11 and closed the day at RM2.99, 17 sen up. Genting Singapore closed S$1.52 (RM3.58).

Genting Bhd, parent to both Genting Malaysia and Genting Singapore Plc, rose 21 sen to RM8.93, a three-year high.

The shares of all three stocks have rallied since Genting Singapore reported a second quarter profit on Aug 12 after opening a casino resort in the city-state.

Meanwhile, some shareholders have not been happy with Genting Malaysia’s plan to acquire the UK casino operations as it is viewed as a related party transaction. Furthermore, they feel the acquisition price is high compared to its current value.

“Genting Malaysia is saying that they are buying the UK operations cheaper. After all, in 2006, Genting Singapore acquired Genting UK for £699.4mil. Furthermore, they see growth in Genting UK,” said one analyst who met up with Genting Malaysia’s management.

For £340mil, Genting Malaysia will get 44 casino licences for the UK operations, as well as properties with a net book value of £289mil (RM1.45bil), not inclusive revaluation gains.

The analyst, however, cautioned that the operating environment in the UK was still tough. In recent years, the casino market has been affected by legislation, including a smoking ban in enclosed public areas. Gaming operators are also now imposed with higher taxes. Hence, the underlying value of the casinos could be lower than the £340mil paid, according to the analyst.

http://biz.thestar.com.my/news/story.asp?f...83&sec=business

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Added on August 20, 2010, 5:09 pmGENMS IS THE CHEAPIEST STOCK AMONG THE WHOLE GROUP OF GENTING

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Added on August 23, 2010, 11:02 amSpotlight on Genting EGM

Some analysts pessimistic about UK casino purchase due to challenging operating environment

PETALING JAYA: While the investing community may now be re-looking at Genting Malaysia Bhd due to its new flavour as an international play, just earlier this year this casino operator did not have a compelling story to tell.

Sure, profits were decent and it was sitting on a cash pile of some RM5bil, but that cash hoard was becoming more of a hurdle as all that money wasn’t doing anything.

Then came the announcement in early July that Genting Malaysia was setting its sights on its United Kingdom (UK) casino operations following the proposed acquisition of four casinos from Genting Singapore plc.

Analysts and shareholders kicked up a fuss, with what was seen as a clear-cut related party transaction.

Genting Malaysia announced that it was proposing to acquire Genting Singapore’s UK casino operations for £340mil (about RM1.67bil). Genting Singapore first bought Genting UK in 2006 at £626.91mil (RM3.13bil)

The UK casino operations comprise four companies – Nedby Ltd, Palomino Star Ltd, Palomino World Ltd and Genting International Enterprises (Singapore) Pte Ltd – collectively known as Genting UK.

Gambling in the UK is regulated by the Gambling Commission on behalf of the government’s Department for Culture, Media and Sport under the Gambling Act 2005.

There have been significant updates to UK’s gambling laws, including increasing tax on poker profits from 15% to as high as 50% depending on profitability. There have also been increased rates on all categories of amusement machine licence duty.

These measures are likely to continue to dampen the gaming enviroment in the UK and some analysts are pessimistic because of the challenging operating environment.

There are concerns that Genting Malaysia could be buying Genting UK at a time when the economy is not only weak, but faces a double whammy of the casino industry facing tough legislation.

Hence, all eyes will be on Genting Malaysia’s EGM tomorrow to approve the acquisition of Genting UK from Genting Singapore Plc Genting Malaysia’s second quarter results to June 30, will be also released on Aug 26.

Genting Malaysia has been on a roadshow in the last few weeks to meet up with its shareholders and to explain the rationale and potentential of buying into the UK casino operations.

Last week at Genting Singapore’s EGM, the resolution in respect of the sale of UK casino assets to Genting Malaysia passed by shareholders.

It is however interesting to note that over the last two days, Genting Malaysia has bought back a total of 11.2 million shares at an average price of RM3.03. This brings its cumulative treasury shares held at 3.71%.

The group has announced its intention to purchase up to a further 376 million shares (representing 6.4% of share cap) within the next 10 months.

Meanwhile last week, Genting Malaysia Bhd obtained all the necessary approvals and signed the agreement to develop the Aqueduct New York racino.

Genting New York is expected to invest US$1.3bil which consist of US$380mil (RM1.22bil) of licencing fee, US$350mil (RM1.12bil) initial capital expenditure (4,500 video lottery terminals), and US$650mil (RM2.08bil) to build three hotels of differing standards, shopping, recreation, spa and other resort facilities.

Dubbed Resorts World New York, the proposed three-storey facility will also contain several restaurants, water features, an outdoor terrace connected to the Aqueduct racetrack which will be able to accommodate up to 10,000 people and a 2,200-bay car park.

Genting New York aims to complete the entire development within 12 months from the date it obtains formal approval from the state to proceed.

As part of a wider development plan, Genting New York is also proposing to build three hotels of differing standards, shopping, recreation, spa and other resort facilities at a total cost of US$650mil (RM2.09bil). That will take the proposed outlay for the entire project to over US$1.3bil.

“If we assume daily win per terminal of US$300 (similar to the more successful Yonkers racino closer to New York city centre), Resorts World New York may contribute RM595mil and RM196mil to Genting Malaysia’s revenue and profit after tax respectively by 2013,” said an analyst from HwangDBS Research.

UOBKayHian reckons that the project is neutral to Genting Malaysia’s revised net asset value but is slightly earnings-accretive over the long term, assuming that the Aqueduct would be eventually given a license to operate table games.

The research house estimates the slot facility could provide a payback period of 5.5 years (on full expansion), while the payback period for the rest of the facilities could be significantly longer.

“Conservatively, Aqueduct could pull in revenue and operating profit of US$468mil and US$84mil respectively when it is fully expanded.

“This accounts for about 14% of Genting Malaysia’s forecasted 2012 operating profit,” said the research house.

The recent spotlight on the entire Genting group has been brought about by Genting Singapore’s sterling results and the re-rating of casino sector in Singapore. Genting Singapore is 52% owned by Genting Bhd.

Genting Singapore’s second-quarter results took the investing community by surprise, when it beat analysts and consensus estimates.

For the second quarter ended June 30, Genting Singapore posted a net profit of S$396.5mil (RM925.9mil) compared with a net loss of S$50.7mil a year earlier.

Revenue soared to S$979.3mil from S$120.1mil previously. This translated to a profit margin of about 40%.

http://biz.thestar.com.my/news/story.asp?f...86&sec=business

This post has been edited by lowyat888: Aug 23 2010, 11:02 AM

i sell already ..

I only sold 2/3 at 3.10, still hoping it to fly higher

Genting gets final approval for Aqueduct video lottery facility

PETALING JAYA: Genting New York LLC has received approval from the Office of the New York State Comptroller to be selected as the developer and operator of the video lottery facility at Aqueduct Racetrack in New York.

This represents the final approval required.

In a filing to Bursa Malaysia, Genting Malaysia Bhd said upon delivery of the approved memorandum of understanding by the State of New York to Genting New York, Genting New York will make a payment of US$380 million as the upfront licencing fee to the State of New York within 10 business days.

“The licence is for a duration of 30 years and the construction of the project (to be known as Resorts World New York) will commence as soon as practicable, with the opening of the preliminary phase expected by spring 2011,” the company said.

Genting New York is Genting Malaysia Bhd’s indirect wholly-owned subsidiary.

http://biz.thestar.com.my/news/story.asp?f...18&sec=business

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Added on September 14, 2010, 3:00 pmGENM PRICE SHOULD BE RM5 whereby GENTING IS ALREADY RM10

the whole genting group inclusive of sg genting, genm is the cheapest and the richest cash flow, asset company. GENM is a purchasing dept/company for genting BHD

eg genting sg price sg2 * 2.35 = rm4.70
genting bhd rm10
genting plantation rm8
genm rm3.18

Thursday September 16, 2010
From 2012 Genting M'sia shares won't depend on Genting Highlands alone

It will soon enjoy the benefits of a global gaming pie

KUALA LUMPUR: Beginning 2012, Genting Malaysia Bhd will no longer be your domestic stock which merely depends on visitors coming up for fun rides in Genting Highlands.

It will soon enjoy the benefits of a global gaming pie when its Aqueduct Racetrack in New York is fully operational.

Genting has received its final approval to kick start works to roll out its first ever video lottery facility in the United States.

Some analysts continue to be neutral on the deal, as they feel there is minimal earnings uptick from its global expansion drive.

Based on Bloomberg’s survey, there are currently 10 analysts with a “buy” call, nine with a “hold” call and eight with a “sell” call.

As it is, there are concerns on its foray in the UK due to the difficult operating environment.

To recap, last month, Genting got the nod from its shareholders to acquire Genting UK from Genting Singapore for a cash consideration of £340mil (about RM1.67bil).

On the US foray though, KAF Research in its Aug 7 report estimated that Aqueduct could eventually contribute 4% of Genting’s 2010 net profit when all 4,500 electronic slot machines were commissioned.

This is based on the assumption of an average win per machine of US$300 per day.

This estimate is extrapolated from studying the financials of Empire City Inc’s video lottery operations, which own Monticello Casino and Raceway, the next nearest casino to Aqueduct Racetrack.

Genting’s investment for the racetrack will range between US$705mil and US$730mil, based on the US$380mil upfront licence fee and between US$325mil and US$350mil capital expenditure programme.

Assuming the US$250mil grant can be used to directly offset the capital expenditure, Genting’s net outlay will be between US$455mil and US$480mil.

“The Aqueduct deal appears promising, with its key appeal being its strategic location just two subway stops from the New York subway. Given the ready catchment surrounding Brooklyn and its proximity to the John F. Kennedy International Airport and downtown Manhattan, we believe that the Aqueduct site could be one of the most strategically-located gambling venues,” said CIMB Research in its report dated Aug 25.

Meanwhile, an analyst from DBS Research feels that the Aqueduct Racetrack should boost Genting’s 2011 to 2012 operating earnings by 5% to 19%.

“The return on investment is estimated at 17%, assuming a six-year payback period, with potential upside from introduction of table games,” he said.

The analyst added that the US$480mil project could be easily funded by Genting’s RM5.5bil cash and RM1.4bil operating cashflows per annum.

This could lead to a 6% to 9% fall in 2010 to 2011 earnings due to interest income loss. This will, however, be temporary, before turning positive in the long run.

Maybank Investment Bank Research is calling a “sell” on Genting, with its report titled: “Pouring huge sums into a tiny apple in the Big Apple”.

The Maybank analyst said it was a mere 3% earnings per share accretion, which would give a low 6% return on equity on the intended multi-billion ringgit investment in Resorts World New York.

“It is just US$29mil net profit on a US$500mil investment in New York. Our generous base case assumes US$300 win per unit per day from the 4,500 machines, exceeding the current US$286 highest in New York.

“We also assume a 35% operating margin and the US$250mil state grant is payable in cash and will off set the US$325mil development cost,” the analyst said in the report.

Maybank said a good case assumptions of 5,000 slots, US$400 win per day and 40% operating margins would see the earnings per share uplift by just 9% and return on equity by 11%.

Meanwhile, over the past month, Genting had purchased 35 million shares for RM105mil at an average price of RM3.05, bringing its treasury shares to 243 million or 4% of share capital.

Genting had mentioned that it intended to acquire up to 10% over the next 10 months.

http://biz.thestar.com.my/news/story.asp?f...19&sec=business

This post has been edited by lowyat888: Sep 16 2010, 10:42 AM

its flying right??? hehe.. told u guys so.. good prospects coming up for the company!!!

The share buyback is probably the best use of capital that the management have done in a very very long time. Although the timing of the buy back is rather suspicious as it is just before the special EGM on GEN UK deal, it may have help to push the deal through. The 40% protest vote is shocking, both in the numbers and the way the voting is conducted. It is requested by a shareholder to be done by poll rather than show of hands, which means some influential shareholder may not be happy with the deal. The 60% who voted the deal through are mainly engage in strategic voting i.e those who hold both Genting Malaysia and Genting Singapore. Funds like Templeton and Fidelity have hands on both companies. So, they decide to sacrifice Genting Malaysia to unlock Genting Singapore value. There is nothing wrong with that as they are not the management and have no duty towards other shareholder.

Regardless of that, the share buyback is a very good use of capital because they are finding it hard to deploy their capital meaningfully.

On RW New York, as with other global expansion that they have done, I am not sure about how profitable it is going to be as it is not a full fledge casiono. Maybank come up with a research report that state the whole project will only earn a 6% return on equity, which is on the low side as GENM ROE is in the mid-teens if you strip off the cash. Their projection is done base on a higher receipt than the highest slot machine win in NY area, so it is rather aggressive and they still come up with 6% ROE. The win rate they projecting is around US$300/machine/day. In Singapore, the win rate is around US$500/machine/day,so, they are potential for increase. But, as usual, we should practice cautioned as Singapore and New York has a totally different demographic and the number that Singapore manage to rack in impressive, the highest in the world. In a more competitive market like Macau, slot win per day is only US$200/machine/day, which is lower than that of New York. Another point to note is that, there is a native American tribe that is applying for licence to operate a full fledged casino (with card games) somewhere near RW New York is situated. This piece of news is not pick up by the Malaysian press but the press in New York have been reporting it. The process is still in preliminary phase and the final location is not confirm yet, so, just hope that the final location would be further away from RW New York.

On the RW Manila side, it is doing pretty well. On a good day, it can match Genting Singapore normal takings, which is a fantastic achievement on its own. So, due to the positive news flow, the share of Genting HK have almost doubled in a matter of 10 days. So, look out for a huge revaluation gains for GENM as GEN HK is carried under available-for-sale in their books.

now after mths...it is truely flying (at least at this moment..heh!) +.24 as of now.

This post has been edited by numbertwo: Sep 21 2010, 03:29 PM

Whats going on? why in a sudden GENM shot up to 48cents?

bull run rm5 target price. below price

mayb dividen quar

Anyway is good news. Hope tomorrow jump another 40cents to touch rm4.

big gap up , wait for adjustment.. but ya..i'm waiting to clear stock at 4 too!