Just a topic i would like to discuss, do you think Genting Malaysia is a good buy? Even if the price drop to $2.40? What are the earnings likely to be after Singapore's IR open...Namely LVS's Casino and Genting Singapore.

How bad will Resort be affected? At what price is fair value after taking all these into account?

Anyone?

I have sort of glance through the link that you have sent to me, but i thought its a different topic. I am merely interested in the views of those intelligent people, like yourself, to give an opinion on the survival of Genting Malaysia and whether its worth to look at given that it has sort of lost its monopoly as a gaming industry in the region.

Sorry i am quite new to this forum, could you explain more why this kind of topic is not allowed?

I dont get why most of you are so optimistic about Genting Malaysia, from where i stand, i think its a goner. High rollers will come to genting Malaysia no more (which is the most lucrative part of their business and not the 75% of people from Klang).
Because its no longer a monopoly in the region, if they want to compete with singapore, they will have to revamp their current casinos, hotels and theme parks which are so run down. Revamping them will cost them tons of money. Even with the revamp, there is no guarantee that highrollers will come to Genting Malaysia. The only good thing about this company is that, there is no debts, huge pocket, and having a profitable business license (dont know if they can afford the cost of the license if business is very bad for them - in my opinion, they still can...if i am not wrong, the license fee is about $3million per quarter or something like that, have to double check). 3 million is nothing to them - for now.
Bad point about the company, future is bleak, and pay very little dividend. I have no idea what kind of aquisition they are considering....its already called Genting Malaysia, thus the only things they can invest in are malaysian casinos i guess...not some other casinos overseas.
I seriously think that this stock is over valued even at current levels. i think the fair value for this stock is only about $2.00 after taking everything into consideration.
Cheers

If you want to use honda Accod and Honda City for comparison thats fine. Just imagine this, before the singapore Casino, Genting Malaysia has a bigger pie, it can sell both honda Accord and city (by means that Honda Accord (high rollers) has a higher margin than City (volume based but margin lower). Once Genting Singapore is opened, Genting malaysia would have to give up its high rollers (when i say high rollers, i am talking about those Platinum VIPs and not the gold) to Genting Singapore.

From what i see it, Boss of Genting have no choice, he didnt want to lose his baby, but really he would prefer to canibalised the business with one of his subsidaries rather than taken by others.

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Added on September 17, 2009, 5:38 amHow i got my $2 calculation. Its very tedious, generally, i come up with 3 scenerios, good, moderate, bad, then i insert probability of each event happening(in this case 40% moderate, 30% good and 30% bad), after which i discount back their future earnings and times by the probability thus getting the value near to $2.

This post has been edited by maxchua: Sep 17 2009, 05:38 AM

its a good company.....its just that alot of intelligent investors are worried about the Casino in Singapore will have a big impact on the revenue of Genting Malaysia. some even forecast a 20% - 30% drop in profit, thats why the share price doesnt move much as compared to its parent company Genting Group