Watch Out Next Two Quarters – Genting RWS

Posted: August 21, 2010 in Uncategorized

What the Experts Say
Submitted by: Our reader Edmund Seetoh
21 Aug 2010 SAT
In the final analysis, Nomura has a good point to indicate that the prime factor remains “the size of this market”.
After following Professional Ground’s expert review for some time as well as reading from various analysts in the news, I somewhat feel that Nomura’s assessment of the Genting Singapore stock trend sounds credible, in that the bloated stock price is derived from overly high-expectations by certain quarters of investors especially from Wall Street hedge funds managers. 
I noticed that experts like Professional Ground, Citigroup, Goldman Sachs and Nomura seem to be more realistic about the size of the market the IR casinos could capture. It (the casino market) is assessed to be in the range of plus & minus USD3b in total revenue annually. Therefore it is hard not to believe that if one of the casinos were to secure at least 60% of the total market share in this relatively comfined market, and Genting RWS has exactly done that for its second quarter operation, then the other casino (Marina Bay Sands) will have a hard time. The claims by both the operators that the market is big enough for them to split half-half don’t seem to work.

But I think MBS will not simply lay down their arms and kiss their butt for good-bye, therefore RWS will face very keen “fight-back of the Empire” the next 2 quarters to come. And therefore, Genting Singapore stock price at this junture is already over-done. It is expected that investors to take early profits from the speculative move.

Editor: Nomura is spot on! Is "size of market"


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