(NOTE: The below attachment was for my own reference only, trade at your own risk.)
Genting S'pore - inching towards MER's target price of $1.70
Date: 21/09/2012
Source | : | Maybank Kim Eng | ||||||||
Stock | : | Genting SP | Price Target | : | 1.70 | | | Price Call | : | BUY | |
Last Price | : | 1.395 | | | Upside/Downside | : | ![]() | ||||
Genting S'pore - inching towards MER's target price of $1.70
Code | Name | Type | Expiry | Exercise Price |
Q7TW | GentingSMBeCW130401 | Call | 01-Apr-13 | 1.50 |
Q3KW | GentingSMBeCW130107 | Call | 07-Jan-13 | 1.30 |
QZ2W | GentingSMBePW130103 | Put | 03-Jan-13 | 1.30 |
+121.7% since opening but….
While it is unclear whether there are more benefits associated with the opening, it has definitely benefited the company’s share price. As at 9 Nov 2010, Genting’s shares had more than doubled from opening, increasing 121.7% in less than seven months (as of 12 Feb 2010 close).
However, after hitting its high of $2.35, Genting has been on a down trend. As of yesterday’s close, the counter slipped 40.4% from its high, while the local bourse only slipped 7.6% over the same period.
Reversal or pullback?
More recently, Genting reached a low of $1.22 on 26 July 2012 and has since added 14.8%, outperforming the local index which gained only 1.9%. MER had previously released a research report on 15 August 2012 upgrading Genting Singapore to ‘Outperform’, raising the 12 month target price to $1.70.
Stock price falls on divestment of Echo
Yesterday, Genting announced that it was going to sell its entire 4.8% stake in Australian casino, Echo Entertainment. Previously, the company paid A$144.2mil for its stake and will now sell at a loss for A$131.7mil. This clearly did not go down well with investors who sold Genting down by 0.7% as compared to Wednesday.
Genting S’pore poised for F1
In other news, the annual Formula 1 SingTel Singapore Grand Pix will be held this weekend and historically the event has attracted many tourists to Singapore, benefiting many tourist related industries, such as Genting Singapore.
Singapore Market Wrap
Red, everywhere
Most Asian indices ended in negative territory yesterday. The STI fell 0.4% day-on-day (dod) to 3,062.61. The HSI fell 1.2% to 20,590.92
Sentiments were dampened by a HSBC report which showed that the Chinese manufacturing activity contracted for the 11th consecutive month in September. The PMI reading was at 47.8 compared to 47.6 in August. A figure below 50 implies a contraction.
STI 3100MBeCW121031 (Q1AW) exercise level 3,100.*
STI 2950MBePW121031 (Q0ZW) exercise level 2,950.*
HSI20400MBeCW121030 (Q7IW) exercise level 20,400.*
HSI20000MBePW121030 (Q7JW) exercise level 20,000.*
Property developers gave away QE3 gains
Both property developers Capitaland (-1.9% dod, $3.13) and Yanlord (-2.0% dod, $1.21) have given up their gains since the announcement of QE3 last Thursday. Some Asians are worried that the US QE3 could flood the property markets with easy cash. Last week, the Hong Kong government stepped up effort in controlling the runaway property prices by limiting the maximum mortgage term to 30 years and rising the minimum down payments.
Call warrant CapitalaMBeCW130103 (Q0MW) exercise price $3.00.*
Put warrant CapitalaMBePW130103 (Q4EW) exercise price $3.00.*
Long term call warrant CapitalaMBeCW131202 (Q7YW) exercise price $3.60.*
Call warrant Yanlord MBeCW121204 (QY2W) exercise price $1.20.*
SGX - still years away from high frequency trading
Bloomberg reported that SGX CEO, Mr. Magnus Bocker, said that the Singapore exchange is still 12-24 months away from introducing high frequency trading in the equities market. The bourse will need more time in setting up rules to regulate the business. In its AGM, Mr. Bocker commented that SGX non-stock market revenues rose $37mn, largely driven by a 16% increase in derivatives volumes.
SGX fell 0.1% day-n-day to $7.21
Call warrant SGX MB eCW121203 (Q0LW) exercise price $7.50.*
Put warrant SGX MB ePW121204 (Q4TW) exercise price $ 6.60.*
Overnight Market Wrap
Is QE3 enough?
The S&P retreated as investors were worried over the global slowdown. It fell less than 0.1%, closing at 1460.26.
In Europe, manufacturing output fell in September while in the US, jobless claims increased this week.
PMI manufacturing in the Eurozone remained below 50, coming in at 46 and the US jobless claims increased by 1.9% compared to last week.
While investors are skeptical as to whether the Fed's plans are enough to help avert a recession, many are still hopeful since the latest QE shows the determination of the committee.
Overnight Markets
Indices | Last | Change |
---|---|---|
STI | 3062.61 | -0.4% ![]() |
HSI | 20590.90 | -1.2% ![]() |
DJIA | 13596.90 | 0.1% ![]() |
S&P 500 | 1460.26 | -0.1% ![]() |
Nasdaq | 3175.96 | -0.2% ![]() |
China A50 | 6950.53 | -1.8% ![]() |
Corporate Announcements
Ex-dividend dates:
Wed 26 Sep: SGX ($0.15)
Tue 6 Nov: Olam ($0.05)
Wed 26 Sep: SGX ($0.15)
Tue 6 Nov: Olam ($0.05)
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