Genting’s 2nd Quarter Result Might Not Meet High Expectations

Posted: July 25, 2011 in Uncategorized

Commentary by:  Alfred Ho

25th July 2011  MON

Chances are, RWS continues to struggle in 2H of 2011, without junket licenses

The local Lion City newspaper reported recently that Genting shares are cooling off in view of the group’s not so strong performances.

Investment analysts embrace the same conclusion by watching the Resorts World Sentosa (casino) performance.  Apparently it was the view of Professional ground’s panel hits the nail right on.  Earlier a couple of months ahead, Pro Ground had already assessed that with very limited scope of expansion for Southeast Asian casino market, the mass gaming segment would taper off pretty soon.  This view is exactly what the predicament that both RWS and MBS are facing right now.

The two casinos are desperately seeking to get Singapore authority to approve and allow junket operators in the IR casinos floor. Without junket players coming in from China and east Asian region, IR casinos can forget about growing the current size of casino market/pie.

However, the local authority don’t seem to be acknowledging the two casinos’ urgent plea. The prime reason could be that, the negative impact of casino in Lion City has began to show its ugly side. With increasing social matters related to the casino as well as public concern on the rise, the authority would be slow to open another flood-gate and more risks of money laundering.  In addition to that, junket operators tend to also “invade” into the heartlander estates in Lion City by playing the game of hide & seek with the authority, in terms of organizing local syndicates to grow domestic casino junket market.  They are full of tricks.

Looking forward, investors should be more cautious about this Genting stock that came with initial high hopes and over-expectation.

  1. sporenews 2 says:

    It’s time to let go my genting stock before it’s too late. Especially less & less Malaysians are coming to resorts world sentosa for betting their dollars.

  2. spore news says:

    Yeah… i agrees and MBS also seem to be slowing down.

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