I thought Resorts has no debts ? What do you mean fundamental analysis hints price dropping to below RM2 ?
I am very concerned.

Didn't they have budget overruns over the new Resorts casino @ Sentosa?

Sure, Resorts might be a good stock in the long run, but short term wise, Singapore is already in a recession while the neighboring countries are no better. The question lingers, how long will this recession last? And from what i see, US is going in a deep painful recession. Even the rich folks are feeling the pinch. Just look at AXP results on Monday!

So if you ask me, i will buy ONLY at RM 1.50.



This post has been edited by AdamG1981: Oct 18 2008, 06:29 PM

As far as I know Sentosa projects including Resorts World is a development of Genting International. Our local Resorts World only catering for the business in Genting Highlands, from the annual report there is no sign of project in Sentosa Singapore and there is -Nil- for long and short term borrowing. This is the main reason why I selected Resorts World instead of Genting.

Please correct me if I am wrong, my view may be narrow now since I am a novice in share market.
Thanks.

This post has been edited by rayloo: Oct 18 2008, 06:37 PM

Yes, seems to me they repaid the borrowings at the end of the 2007 fiscal year.

I browsed the Sentosa Resort World website and found this.
Resort World At Sentosa Singapore

This post has been edited by rayloo: Oct 18 2008, 06:44 PM

Yes, you are right.

I must say i am surprised that the PPS for resorts have been tremendously pressured even without owing. Then it must be profitability issue.

Phew.....I was so scared. Because i just bought in some.
Thanks for confirmation.

The Resort World in Singapore belongs to Genting Int which is also based in Singapore. Major shareholder of Genting International is our local Genting Bhd

Resort World Bhd could be appointed as Manager/contractor to build and run the Resort Hotels in Singapore. Apart from that, they do not have any equity link.

This post has been edited by SKY 1809: Oct 18 2008, 06:52 PM

Well in the current environment, if profitability for Resorts does decline rapidly, would it lead to borrowings?

If they drains out the cash pile, then yes.

But Casino is doing better in bad times, so people need a small place to stay. After all , it is a small cost compared to the fund needed for speculation in Casino.

They are in Cash Business, meaning bad debts are not likely.

This post has been edited by SKY 1809: Oct 18 2008, 07:05 PM

Oh I pray not, I will bring many friends to visit Genting Highlands to lose monies...

BTW, since I just bought some Resorts World shares, can I still request for this year vouchers ah ?

This post has been edited by rayloo: Oct 18 2008, 07:04 PM

Resorts is sitting on a pile of cash so it's unlikely they will borrow money soon. Infact, they could be looking at acquisitions during this downturn.

No offense AdamG1981 but I really hope you verify the facts first before coming out with statements like that, that scare people.

It wasn't too long ago that you warned about triple witching only to realize later that we're in Oct and not Sep.

That is where money could be made. When there is hope, then again money to be made. he sees the future where we do not.

Correct me if I am wrong.

Adam see things that I don't, I am glad he would raise hidden things for clarifiation. I noticed but I not even know what tripple witching is.... What oct what sept !!!
Thanks Adam again.

I really don see any logic to buy in this counter at current price below are my reason:

1. Stingy in dividend as they need more cash for their business expansion in macau casino ....In shorts they need more cash right now...

2. Global economy is going to slowdown at least few years time, holding this type of counter does not benefit you anything

3. If not wrong 100% of resorts business is in malaysia... With our political uncertainties... it is not a wise move

This post has been edited by darkknight81: Oct 18 2008, 08:42 PM

Just want to add my 2 cents on Resorts.

Resorts is sitting on $4 billion in cash and equivalents with no borrowings (it paid off its $1.1 billion convertible bond last year). Therefore after deducting its cash from today's closing of $2.43, you are actually only paying $1.68/share (There's about 5.7 billion shares outstanding). It generates about $1.8 billion in cash annually or about $0.30/share. Which means, the price(net of cash)/earnings per share is at a relatively low 5.6 times. It has also exited its loss making investment in Star Cruises.

As Genting may need money to fund its capex for Sentosa and also losses at its UK casino operations, there may be a need for Genting to access the cash and cash generating ability of Resorts. Potential privatisation candidate?? You may need to do your own valuation (e.g. enterprise value) on the counter though.

The not so positive points about Resorts is that it is only exposed to the casino industry in Malaysia, which means its growth potential is limited (it transferred its international operations to shareholders last year) and it is not likely to pay good dividends as its parent, Genting only hold 48%. [Nevertheless, I don't mind low payout in dividends in exchange for increase in price due to the taxation on dividend income]

This post has been edited by nven: Oct 22 2008, 11:57 PM

If you look at Genting highlands, their hotels quite run down and maintenance wise is in poor condition. It will take lots of money to upgrade them again. When will that be?

Genting go to 4.20 now...any join in?

Yesterday DJ in blood pool, I thought today Resorts KO liao, mana tahu....today goes green. What a funny market !

Majority of the analysts have buy calls on Resorts. Looks like some are even saying its one of the key defensive stocks in Bursa.