Tuesday, 31 July 2012

Genting earnings play - analysts throwing in the towel ?

Ever since  CEO of Genting-SP or RWS  sold some 900k shares at about $2.05  on 27 Sept 2010 after announcing better than  expected results , Genting shares climbed up to an all-time  high of  2.35 on 9 Nov 2010  on a spate of analyst upgrades  before crashing all the way to 1.22 last week  after a persistent stream of  bad news -- earnings below expectations almost quarter after quarter  , the last 3 pieces of bad news being SG government curbs on over-gambling at casinos for locals , China slowdown affecting visitors at Macau and MBS-LVS worse than expected earnings.

Given the recent deluge of analyst downgrades after worse than expected results from LVS/ MBS,   the most optimistic analyst left standing has probably thrown in the towel on Genting SP so maybe now is the time to pump the stock again , at least until earnings release on  10 Aug though one has to take into account the STi appears to have hit a temporary top or roadblock at 3040/50 (see last post)  which may not break until Bernanke-Draghi utters QE or brandishes new bazookas , hopefully this week    so caveat emptor ..

see also : Genting SP - trust the chart , not the news-click here 



6 comments:

conniebabe said...

Hi Bill,
the price has retraced fr ytd high 1.34to 1.305 now, do you see further upside or it's time to book profit?

thxx
connie

Bill E said...

I believe many STi blue chips topped out( at least in short term) today or yesterday,eg. dbs ( 14.99)and capland ( 3.16), sgx( 6.85) hit my short-term toppish targets , so I will be cautious , anyway yesterday I took 2/3 of my of profits on genting sp at 1.335 where I saw a reaction level at 1.335-1.34 , leaving the rest for a ride to National day .. my apologies I forgot to draw that level on the chart..

Regards
Bill

conniebabe said...

thanks for the reply, Bill. I didt manage to sell at that point, genting nt looking too good now>.<

Bill E said...

In general if you have a good dow nite ( say up 200-300 pts) and the stock had already run up somewhat the previous day in anticipation, it is good policy to take at least some partial profits the very next morning ( and totally disregard for that moment what long term price target people tells you - one bird in hand is definitely worth more than two in the bush ) .. can always buy back after the reaction runs out of steam at a good support level .. of course that might incur some extra brokerage commissions which though a pain in the ar.. should not be allowed to affect one's self conditioning/ discipline in reacting to the market flow.. if comm is an issue find a cheaper broker ..

Genting looks strong at 1.285( see orange line) for now.

Regards,
Bill

conniebabe said...

Thank you for your kind reply, I will bear this in mind:)

Happy & profitable trading Bill!

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