Assuming earnings rise 10.4pc in year 2011, what would this represent to BJTOTO ?
Current Estimated earnings = 410 millions
With 10.4% rise in 2011 = 410 X 10.4% = 452 millions
Estimated EPS = 33.5sen
Estimated PE in 2011 = 13.67
Simple FV would be = 15 X 33.5 = RM5.02 (almost 10% discount from current price)
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BToto earnings could rise 10.4pc: OSK
Gaming company Berjaya Sports Toto Bhd (BToto) could expect to see a 10.4 per cent rise in earnings in 2011 with the possibility of a sports betting licence on board.
In its research note, OSK Research Sdn Bhd said the earnings projection was based on the legal sports betting market which was equivalent to 50 per cent of the upper end of the unofficial estimate of RM20 billion for the illegal sports betting market.
The earnings projection premised on BToto gaining from a realistic 0.5 per cent agency commission rate, said OSK Research Sdn Bhd.
It said that the payout structure for sports betting is much higher at about 90 per cent versus traditional numbers forecast operations (NFOs) games' 64 per cent to 66 per cent.
"This, coupled with a similarly high tax structure, indicates that the agency commission rate charged by BToto is unlikely to be too lucrative in order to maintain the profitability of the sports betting business which is expected to reside at Ascot Sports Sdn Bhd (potential 51 per cent subsidiary of Berjaya Corp Bhd)," it said.
Earlier, Berjaya Corp had requested for a halt in trading today pending an announcement of an acquisition from a related party of the company and a capital-raising exercise.
With the acquisition of Ascot Sports, Berjaya Corp will gain if the government decides to legalise sports betting in the country as Ascot Sports will become one of the beneficiaries of the move.
Over the longer term, it said all the NFOs will benefit if the government eventually liberalises the sector by leveraging on all the NFOs to expand the distribution network for sports betting to take away market share from illegal operators.
"This will be positive for the industry as it will provide a strong leg up on earnings growth given the relatively mature legal NFO gaming market in Malaysia," it said.
The research firm said given the limited distribution channels and the fact that the illegal market will continue to thrive given its key advantages of convenience and credit facilities granted, the legal market is unlikely to overtake the illegal market, at least over the immediate to medium term. -- Bernama
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Berjaya Sports raised to ‘Buy’ at HwangDBS
Berjaya Sports Toto Bhd had its stock rating raised to “buy” from “hold” at HwangDBS Vickers Research Sdn Bhd after the company’s parent agreed to buy a 70 per cent stake in a sports betting company.
Berjaya Sports will benefit because its outlets will be used for the sports betting game, according to HwangDBS, which set its price estimate for Berjaya Sports shares at RM5.20. - Bloomberg
13 comments:
Classic scenic continue uptrend.... at 75sen now. With 100% shareholding at average cost 69.2sen, total capital stand to reap total 8% net paper profit increment! If materialize, this year KPI to achieve 50% increment in total capital will be able to achieve by this month!
In regard to bjtoto, the impact on its earning could only be effect in next quarter, which may translate to higher dividend payout. investor opt to sell on strength/once its confirm, sell on new..
Wow, that is great !!
COngrat hng... :)
Your result speak for itself, a real true trader & keep repeating the success method for many to follow including me... :)
Bought GENM at 2.84-2.85 for its weakness
hng,
u can parked to sell genm at 2.89.
always last minute push up. Hope it works. :)
yr mwe also on the rise. :)
You're right, my intention is to play fast on GENM, hopefully it will happen again :)
Ai ya, too bad, got trap, unable to make intraday trade on GENM, close at 2.84...:(
Genm failed in last minute bid up this time round. I am damn sure someone is manipulating the price, they are holding the price low for some purpose to benefit some quarter that did huge shares exchanging recently. Something is phewing very soon.?
Bought also GENM at 2.84-2.85 in the hope to swing trade for some quick gain, but failed as no last minute rebound this time :(
Update portfolio + Ultramargin line
1. Classic scenic 100% (cost 69sen)
2. Kfima 62% (cost: 97.5sen)
3. Manulife 27.4% (cost 2.65)
4. PJ development 11.2% (cost 73.5)
5. GENM 8.5% (cost 2.842)
5. MWE 8.1% (cost 94.5sen)
6. OKA 5.2% (cost 60.3sen)
7. CCM Duopharma 3% (cost 2.39)
Second portfolio + margin line
1. CCM duopharma 42.5% (cost 2.40)
2. Chuan 16.2% (cost 60.5sen)
horse
Never mind la, as volume is relatively low, still have chance to trade or else opt for its marginal dividend of 4.2sen. After all, GENM will trade in tight range 2.70-2.90, downside limited.
just gotten my GAB interim div 10sen TE. :)
horse
Well done, every month have passive income from your stock holding, alike bonus from well-known business partner :)
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