Scenarios for Genting Singapore 3rd Quarter Hands

Posted: November 8, 2011 in Uncategorized

8th Nov 2011  TUE

Commentary on news report

By:   Professional Ground Decoder expert panel

WILL GENTING’S 3RD QUARTER A BIG GAINER?

iF YOU BELIEVE IN CANNIBALIZATION, THEN GENTING'S 3RD QUARTER MAY NOT BE THAT JUICY

COMMENTARY:

As covered by the newspaper, some analysts are hopping to jack-up Genting Singapore’s stock prices because they have lots of them under their account.

Based on our assessment which is consolidated from various sources, Genting’s 3rd quarter could be another disaster followed their 2nd quarter’s poor show. However, there’s 50-50% chance that Genting RWS might have done moderately well if Marina Bay Sands did not manage to cannibalize much of their market share.

So, here we throw out the appended scenarios for Genting’s 3rd quarter:

(1)  It is possible that Genting could have performed well and managed to hold on their ground even under siege by Marina Bay Sands. That would give an improved 20 – 25% EBITDA as compared to the 2nd quarter.

(2)  It is likely that for the 3rd quarter MBS has continuously cannibalized Genting’s market share.  That would mean that Genting’s 3rd quarter remains another disaster, but only sligghtly better than its 2nd quarter.

(3)  We learned that there’s at least one Hong Kong junket operator disguises as Pseudo Junket, providing junket players for Genting RWS. But their “fees” is pretty high. Whether such churning for the 3rd quarter is effective is yet to be seen.  But we “heard” that Genting familiar Malaysian market has stagnated.  If RWS was not able to churn more than adequate VIP gaming revenue to cover the lost in mass market share from Malaysia, the results will not be promising.  Opening of additional non-gaming facilities (in RWS) as reported will not save the casino performance if VIP side could not churn out consistent high numbers or mass market stagnates.

Advertisements
Comments
  1. Just wish to say your article is as surprising. The clearness in your post is just great and i can assume you are an expert on this subject. Well with your permission let me to grab your feed to keep updated with forthcoming post. Thanks a million and please carry on the rewarding work.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s