Thursday, October 22, 2009

OSK Research maintains Buy on Genting Malaysia

KUALA LUPUR: OSK Investment Research is maintaining its Buy on Genting Malaysia (formerly Resorts World) with a target price of RM3.25 (10% discount to realized net asset value of RM3.60).On Wednesday, its unit Resorts World Ltd, had subscribed to Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp mortgage notesamounting to US$15 million (RM50.5 million). The notes yield an annual return of 7.9% and mature in 2017. The Notes are secured on substantially all of the existing and future assets of the issuer.OSK Research said the acquisition represented a minute 1.1% of the group's net cash balance of RM4.6 billion and only 3% of the total subscription offering of US$500 million by Wynn."We believe that the market may start questioning the strategic reasons for investments of such small scale despite its potential to generate higher returns than the risk-free 2% that the group currently earns on its cash hoard," it said.The incremental impact on group earnings from the RM50.5 million investment would amount to approximately RM2.9 million, or less than 0.2% of the group's FY09 earnings.Given that Resorts remains the key cash flow generating company within the group coupled with its net cash hoard of RM4.5 billion, OSK Research said it continued to believe that it will remain the group's preferred casino M&A vehicle. In relation to potential acquisition opportunities in Macau, Singapore's strict casino licensing oversight may pose a hindrance to Genting Singapore. The stock's current undemanding valuations of 5.7 times FY10 enterprise value/ earnings before interest, tax, depreciation and amortisation (EV/EBITDA) versus its historical average of 7 times and the regional peer average of 7 times to 10 times, indicates that the potential competitive risk emanating from the Singapore integrated resort has largely been priced in. "Stripping out its net cash/share of 90 sen, the stock trades at 8.9x FY10 PER. Maintain BUY with a target price of RM3.25 (10% discount to RNAV of RM3.60)."

73 comments:

lofan73 said...

good morning bros,

hng,market is up. which ctrs u whack? still TA n hunza?

Anonymous said...

Lofan

I've loaded 100% margin on TA at initial cost 1.47, but manage to reduce total holding cost after last 2 day intraday gain on TA. Current book TA at 1.45 holding cost.

Today market seem regain momentum stimulate by yesterday gain in DJ. I'm still wait to record real profit from TA: every 1 sen gain (few k), 2sen (>10k); 3sen (>20k) etc

Hunzpty need a bit longer period, but the catalyst may emerge soon once its proposal to right share + free warrant share announce. In current bullish market, right share and warrant share may be good for short term trading.

horse
Congrat for your Genting and GENM, there are on the bull run. cheer

horse said...

yesterday bought more Genting SP at 1.11 at almost last minute trading close. Have increased my stake to 43% of my total capital.

hng,
congrat again, TA inching up. :)

Anonymous said...

Horse

Finally, you got chance to load your desire stake on Genting SP. Good investing. Today, Genting SP inching up as well. Good investing

Yr 2010 is fast approaching, new year festive is catalyst for all Genting, GENM and opening Genting SP :)

steve said...

hng,

U must be trading million riggit on every single transactions. I study ur trading transactions & if i leverage it, i think i will end up having negative profit because paying the brokerage commission. I think i will just stick to buy and hold for the moment...haha

Anonymous said...

Horse

Somehow encounter problem to assess your blog, unablee to update in time.

Just recall this morning trading status: sold off all TA at 1.47, bought Hunzpaty at 1.45.

Just now in the afternoon session, bought back all TA at 1.45, realize intraday gain

horse said...

steve,
you trade via online or remisier ?

This one need online to do that, as the brokerage is cheaper and negotiable.

Anonymous said...

Steve

Most of the transaction are done above 100k to minimize brokerage fee. Frankly, sometime i do trade million in transaction such as TA.

horse said...

hng,
ya, i encountered the same problem as well.

Today budget day, think that REITs will benefit the most as gov may waive all witholding tax. :)

Anonymous said...

Steve

Fulltime trader must trade online and monitor everysecond and make decision fast.

Anonymous said...

horse

No wonder your Atrium upswing recently. Witholding may reduce from current 10% to 5% or waive totally.

Anonymous said...

I've sold today and more Hunzpty at 1.47, and channel capital to buy more OIB at 1.26

Anonymous said...

Wow, TA at 1.43!? very volatile...

horse said...

What i heard is total waive. Hope it does come true. :)

horse said...

Your each move or trade really surprise me. At first i tot you accumulate Hunpty but you take profit instead and channel to OIB. :)
Really fast in making decision. Thumb up.!

wow, TA is now 1.42/1.43..

Anonymous said...

Horse

I've use all margin line from buffer to buy additional 50% stake of TA at 1.43.... Hit ultra maximum

Anonymous said...

Wowlah, TA continue on selling pressure, close down 4sen, at 1.42 :( Record today intraday gain from TA to lower holding cost from 1.45 to 1.44.

I'may opt for all TA global and RPS on 28....

Sold out all hunzpty at 1.47, to further decrease stock holding.


Core portfolio
OIB 69.7%
Cheetah: 10.3%
Pintaras Jaya 9.7%

Ultra maximum trading portfolio
TA 100% (cost holding RM 1.44)
TA 50% (cos holding RM 1.43)

lofan73 said...

horse n hng

looks like gen sp still very strong today n i cant wait already.hands r them itchy n i will buy on monday so tht my portfolio will consist three of them. if they wan to push up any one of them i also tak sakit hati la..all three also got.wht do u think?

Anonymous said...

Oriental interest (OIB) has just declare its final dividend of 10sen, ex-date 24/10 :)

Anonymous said...

Sorry, OIB ex-date dividend should be 24/11.

Lofan
I venture to Genting SP mainly stimulate by horse. Many thanks to horse, that have motivate me to buy Genting SP just before its ex for right share :).

Genting SP should fate even better next yr, particularly if it manage to open casino by CNY. Thus, invest now should be timely and reap hansome profit once everything is settle.

Anonymous said...

2010 BUDGET HIGHLIGHTS

* Individual taxpayers to be given tax relief on broadband subscription fee up to RM500 a year from 2010 to 2012

* Malaysia's GDP will grow 2-3% in 2010. For 2009, GDP forecast is -3% from earlier estimate of between -4% and -5%.


* Rewards for students who excel in studies:

- 30 National Scholarships to the creme de la creme of students stictly based on merit

- Convert PTPTN loans to scholarships for students who graduate with 1st class honours degree, beginning from 2010,

- Offer a netbook package, including free broadband service, to university students for RM50 per month for 2 years.

* Allow 100% foreign equity participation in corporate finance and financial planning companies compared with the present requirement of at least 30% local shareholding.

* Tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010. Existing tax exemption will be retained for gifts between parent-child, husband-wife, grandparent-grandchild.

* To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.

* To ensure that fuel subsidies only benefit targeted groups, Govt will implement a fuel subsidy management system in early 2010, which will utilise the MyKad.

* The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.

steve said...

hng,

I trade online. I believe most of the online brokerage is pretty standard. In order for me to negotiate lower brokerage, then i need to be like at least trading pver 100K. I don;t think my half year turn over is 100K ...haha. Chicken feet capital compare to u. SO need to go for buy and hold until i acquire right skills and capital.

horse said...

lofan,
ya, just whack all Genting, so anyone goes up also you happy. haha

hng,
every bid move on TA is 10K for you, i think same thing apply to OIB as this also contribute 60+% of your margin line. :) Hope these two will fly come next week. OIB's 10% dividend is indeed an attractive carrot, if you happen to take up the dividend, that will bring you easily >50k back just dividend alone i guess. ? :) All d best to your trading, may the best price be yours & laughing all d way to bank come next week. Have a good weekend. =:)

horse said...

Just gotten my GENM dividend of 3sen. :)

Anonymous said...

Sold half of the stake of TA at 1.45 in early morning.....

Anonymous said...

Market in negative territiory, sold out all remaining half of TA at 1.44 first....

Anonymous said...

Ha! bought back all TA at 1.43, realize intraday gain :)

Anonymous said...

Steve

As mention before, if capital is relative small. buy and hold is best strategy as it generally can wait more longer for stock to gradually appreciate and command higher profit margin.

Once realize paper profit, your capital will increase substantially. Keep practise and accumulate experience.

Anonymous said...

horse

OIB start appreciate after announcement of its dividend, up 4sen now at 1.31. The payment of 10sen dividend give rise to yield of 7.8%. I'll wait for bit longer for even better profit margin. Hopefully, it can track like ptaras performance which is also trade cum-dividend of 10sen :)

Anonymous said...

Sold back some TA at 1.44....

Anonymous said...

Bought back all again TA at 1.42..

horse said...

hng,

Many rounds on TA already huh... :0

Today quite busy. Not much time to post here.

All the best.

Hope that TA & OIB rise when ex-date draw nearer... :)

Anonymous said...

Sold some ptaras, OIB channel all capital to buy TA: bought maximum TA at 1.42...

Anonymous said...

Sold TA at 1.41, but bought back later at 1.40...

Anonymous said...

With today trading, i've manage to reduce further holding cost of TA from 1.44 to 1.423

Core portfolio
OIB 58.2%
Cheetah: 10.3%
Pintaras Jaya 3.4%

Ultra maximum trading portfolio
TA 175% (cost holding RM 1.423)

horse said...

wow, market in correction mode.!!!

USD strengthen a bit.
I have shorted EUR/USD yesterday and take a mere 12pips profit. :)

Anonymous said...

This morning, make swap on TA and GENM, sold TA at 1.39, bought GENM at 2.73. Sold back GENM at 2.76, now q to buyback TA 1.38...

Anonymous said...

Just bought back all TA at 1.38....

horse said...

hng,
not bad at all. Making swap profit and intraday profit :)
superb trade !!

Anonymous said...

horse

Currently still on paper loss, despite numerous effort. TA will ex- by tommorrow, share price will adjusted in accord to dividend in species of TA global and RPS. If one to hold 10 share of TA at 1.40, after ex-share (6 x TA global at 50sen + 6x TA global RPS at 50sen), TA share will adjust to 80sen.

Anonymous said...

I've decided to pick up all TA and opt for all entitlment.

Anonymous said...

Just refer to bank, unable to pick up all share due to margin after TA adjust to 80sen... Sold off all TA at 1.39 instead...:(

horse said...

hng,
i think it is ok. after all i believe you cost only at 1.40.
more or less breakeven for this round. :)

Anonymous said...

horse

Aiya i've bought back all TA again at 1.38!

In order to avoid margin call, today I've sold more OIB at 1.30-1.32, pledge my reserve: Suku bond, PB bond fund and FD. I think should be enough to pick up all without suffer margin call :(

Core portfolio
OIB 49.6%
Cheetah: 10.3%
Pintaras Jaya 3.4%

Ultra maximum trading portfolio
TA 175% (cost holding RM 1.408)

Anonymous said...

Sold off all TA at 80-80.5sen, early morning

horse said...

can start buy back now... :)

Anonymous said...

Wowlau, TA at netaive territory!? bought back all TA at 77sen, further reduce holding cost :)

Anonymous said...

Sold partial TA back at 78sen

Anonymous said...

sold remaining TA at 77.5

Anonymous said...

I think with today trading, overall TA should be already breakeven.

For now on, TA investment will be record as TA global and its ICPS at cost.

Anonymous said...

Make third round of intraday trade on TA; bought at 77sen, sold back all at 78sen. starting to make meaningful profit :)

horse said...

Well done !!
Again proven your strategy from -ve to +ve... :)

Anonymous said...

Although start to make little profit, but it take almost 1 week to breakeven TA :(

Lesson learnt
1) buy TA at strength, high entry cost of 1.47..

2)Invest too much capital and ultra high margin, resulted too little buffer and very difficult to breakeven: must sell first and buyback later..

3) Getting too emotional in chasing TA share, resulted uneasy and irrational investment strategy that to pour all margin in downtrend stock.

Anonymous said...

Today so far

Sold out Ptaras at 1.47,
sold some OIB at 1.31,
bought hunzpty at 1.42

Anonymous said...

Bought Amfirst at 1.04

Anonymous said...

Last min, also bought GAB at 6.95

Core portfolio
OIB 48.2%
Amfirst 11.3%
Cheetah: 10.3%
GAB 9.7%
Hunzpty 9.1%

Trading portfolio
75% TA global + ICPS (cost RM 0.50)

horse said...

Just gotten my Genting's dividend of 3sen, today bought back all Genting at RM7.35 that was sold at RM7.61 the other day.

Atrium just declares 2.2sen today, dividend payout seem to back on track but earning shrink by 25%. Ex-date is on 11/11/09.

Anonymous said...

Atrium earning is on track after secure new tenant. From now on, can expect quarterly income of at least 2.1sen or cumulatative 8.4sen pa.

I'm aiming higher income yield from Amfirst from its semi-annual payout :)

In addition, today added GAB, which is expected to declare final dividend of 31sen TE next wk.

Anonymous said...

Bought Genting at 7.19-7.20, early morning

Anonymous said...

Bought glomac at 1.24-1.25

ccdev said...

hng,

hi. been following this blog recently, your trading skills is very unique. Will like to ask you some question, hope you are willing to share some of your ideology. at the moment, i am using buynhold (using Sam's strategy) but would like to learn more about quicker trades as i have time to monitor the market.

i noticed that you can make with 1c move. my commission is 15% for intraday and 0.3% after T day. at 0.3% i lose if buy stock around rm1.20 just wondering what commission you pay that enable you to make profit on such thin margin?

Do you just trade when the overall market is up (general trend up) or you dont care, see stock only? and how do you see that buying momentum is gone, and selling momentum is stronger and is not just temporary dip in buying pressure?

also noticed that you buy dividend stock. do you ever play contra w dividend stock (like wait for ex price and sell on the diff) or you buy just for the dividend?

tq.

horse said...

wow, regional mkt all in red zone.
Genting SP also being bashed down to 1.04/1.05 now, will likely accumulate more if it ever drop below $1..

Anonymous said...

ccdev

You can split your capital into buynhold for long term and buynsell strategy for shortterm. First of all, monitor targeted stock movement and study its 1month-12month range and volume. Develop investment plan for entry and exit price, monitor your stock movement for last few days and initiate buy few first and on share weakness. Later study the next movement. Accumulate if stock direct to further weakness to average down holding cost, provided you are confident stock will rebound as you must already done thorough research that the risk of lossing money is minimum and sell once hit or just before target selling price. Of course, there will be exceptional, if stock keep fail to rebound and further dampen by overall poor sentiment and underweight, you may need to cut loss in accord to exit plan, cut at 10-15% loss

In regard to transaction cost, trading online is cheaper. Brokerage for normal online trading is 0.38%; if trade exceed 100k, brokerage cost is at 0.21% and for intraday, brokerage is at 0.15%. Due to current capital size, i always opt to trade above 100k. Take for example, today i've brought glomac at 1.24, if cann't sell today for even 1sen higher (profit RM 205), i still can make profit after T (profit RM 105). If glomac stock heading further downward, i may opt to wait bit longer for its upcoming dividend of 4.5sen, which act as buffer.

There is almost impossible to anyone to predict next market direction, thus, anytime is good time of investing. What can be done is do more study and make research on stock with both bottom-up and top-down approach. Belive me, knowledge can lower risk of investing. Stock fundamental is a core (e.g. EPS, dividend yield etc) and complement by technical analysis and stimulate by current market sentiment.

I regard to dividend stock, i tend to buy before dividend is declare and sell once it make annoument. I seldome keep dividend as i'm unable to redeem tax dividend back and have to free up capital to invest other similar stock

horse said...

just did a reverse by selling GENM at RM2.81 and got them back at RM2.79 for an intraday. :)

ccdev said...

thanks hng, for such a lengthy explanation on your general strategy. wonderful focus and quick hands you have. will continue to monitor. Good trading, man!

Anonymous said...

horse
Well done, manage to make intraday gain in bear market proven that you possess good skill and confident.


Bought additional Genting at 7.15-7.16.

Bought also GAB at 6.88-6.90

Anonymous said...

Just bought TA at 77sen

horse said...

Sold some of my Atrium at 0.83.

wow, shopping spree for you today. :)

Still not as skillful as you. I just can't turn -ve trades to +ve trades. You are a class above :)

horse said...

Take a detail look at GENM at RM2.78, there is a lot of marriage deals of 5000units transacted. Something going on ?

Anonymous said...

Today, sold some OIB at 1.29, Sold back also some Glomac at 1.26, realize few hundred intraday profit.

Core portfolio
OIB 46.7%
Amfirst 11.3%
Cheetah: 10.3%
GAB 15.5%
Hunzpty 9.1%
Glomac 4.7%

Trading portfolio
TA global + ICPS 75%
Genting 12.8%
TA 5%

Anonymous said...

GENM definitely is the star performer in today bearish market, especially Genting still under selling pressure. Perhaps, there is some insider news circulate !? sitting on huge cash pile, GENM deserve a closer look and always in market maker radar screen. its all depend on timing, once trigger the buying button, share will just go up and we as retail investor will just need to accept it :)

Anonymous said...

horse

You just lack of time to practise your skill till perfect. You already equip with all essential knowledge to be intelligent investor :)

小偉 said...

Hi hng,
I would like to ask you about dividend from stocks.

I am still a student and I started trading stocks last year (1.5 years) using RM7000. Now, I have around RM8200 in total after trading some stocks and gain the profit.

I would like to add more money to my account and go for dividend style.

If I am still a student, I receive dividends from stocks, how can IO claim my part dividend that is being Taxed?

I read from a forum saying that dividend is taxed 26%. Since I am not working and my income does not hit the 26% bracket, can I claim my dividend?

Hop to hear from you soon. Thanks. :)

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