Sunday, August 15, 2010

Is it a good time to buy Genting Singapore now?

Genting Singapore just reported a better than expected second quarter results that beat analysts by 33%. So is it the right time to buy Genting Singapore shares now?

After announcement of the second quarter results, the share price has rocketed 15% to close near $1.50. At this price, giving it a P/E ratio of 15, Genting Singapore has to earn $0.10 per share for FY2010. As of 2H2010, their earnings per share is at $0. I still don't think that it is the right time to hold their shares yet.

On 24 august, shareholders will have to vote for the divestment of all the UK casinos. Once it's approved, we will still have to wait for the actual sales to realize.

So when is the right time? When the price goes back to $1.20 range, or if you feel rich, no harm buying now. The difference is only the percentage returns that you will get for your invested capital.

Else, just continue to save money and wait for the right time.

No comments:

Post a Comment