Being the only listed casino operator, Genting Singapore stands out as a rare breed of billion dollar enterprise among the pantheon of banks, GLCs and Reit counters in Singapore Exchange. Current market capitalization is $11.4 billion, while liquidity for this counter is also excellent, with average 3 month volume of 32.33 mm. Genting Singapore is also crazily rich, with $4 billion cash on hand. Given such pedigree, it certainly makes sense for investors to invest in Genting Singapore shares.
However, since the start of the year, Genting Singapore share price has corrected by 30%. The plunge in Genting Singapore share price had given investors a wild ride, not least plenty of sleepless nights. Indeed, it had been a turbulent period for Genting Singapore as it had to retrench 400 staff in 2016 as a result of regional economic slowdown and bad debts problem. Should investors run for their lives or hang on for their dear lives?
While the past has been a treacherous journey for Genting Singapore investors, the future could be an exciting one as the casino operator prepares its bid to enter Japan, the world’s third largest economy which recently just legalized gambling.
In my opinion, Genting Singapore share price is currently trading at attractive level and this could be an interesting counter to invest because of the huge positive catalyst for Genting Singapore share price. However, to make money out of this stock, investors must be wary of the movements of the big boys and set appropriate entry and exit levels.
Show hand for Genting Singapore share price?
As of 19 October 2018, Genting Singapore share price was trading at $0.95. But the question now is whether current price level reflects the business fundamentals of Genting Singapore. After all, the consensus target price is $1.415. Against such backdrop, the current trading price is a far cry from the analysts’ targeted Genting Singapore share price. But then again, in the stock market, analysts have no swaying power over the market movements. Only the big boys have the final say.
And for Genting Singapore share price, data revealed that dark forces could be behind the recent correction.
According to SGX market statistics, in the week of 1 October, Genting Singapore was [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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