14th Feb 2012 Tue
New Extracts & Commentary
SINGAPORE CASINO PIE IS NOT REALLY THAT BIG?
At the close of the day, Genting Singapore stock price is at SGD1.70, with analysts recommending a Buy position.
Just last week, Marina Bay Sands (MBS) 4th quarter 2011 result announced was not really sparkling. It merely indicates a “diminishing effect” of the Singapore casino Pie.
The fact remains, without large-scale Junket operations, Singapore casinos would be highly constrained by its limited turnover of programmed gaming chips to boost its Win % and margins. On the other turf, the mass gaming arena is already showing its weakness – mainly relying on Malaysians and locals market. With the govt. watching closely on its population’s involvement in gambling, there’s no way to grow local domestic market pie. The Malaysian market has been on “Over-drive’ for the last two years and also, it is slowing down.
We don’t expect Resorts World Sentosa (RWS) to announce anything that’s overwhelmingly good for its 4th quarter 2011 either. It could be worse than MBS.
The Malaysian buses are slowing down... Johor just can't sustain the "milk-run"
