Saturday, December 26, 2009

GENTING SP (G13) - Well positioned to tap pent-up regional demand

This is the best research report about GENTING SP business & valuation from OSK Research Team. I would recommend you all take a look.

Download Link:-
http://rapidshare.com/files/325987027/Genting_Singapore_Initiation_In_Pole_Position_20091222_OSK.pdf.html

Thanks.

Thursday, December 24, 2009

Asia Outlook 2010

There are four key differentiators which will drive
future growth in the region:
1) natural resources wealth,
2) emerging industries,
3) the low cost of manufacturing
4) the growing consumer class.

Expect V SHAPE RECOVERY in 2010. Enjoy your trade!

Wishing you all a happy holiday, Merry Christmas and Happy New Year 2010!

Tuesday, December 22, 2009

New York: Runaway Inflation?

The producer price index for November jumped - Pls see figure 1.0(no picture - can't post due to technical problem). For investors and central bankers, shoud this be very worrying? In normal circumstances, yes. In current economic landscape, it would be a no. Why?


1) It should remove all fears of a deflationary environment unfolding in the US. Secondly, oil price has fallen for many weeks now, relieving the latent inflationary pressures. There are apparently various reasons for this welcomed development, example the fall in oil price. One, the supposedly weaker than expected oil demand from the US. Two, a strengthening US dollar. If these 2 reasons are valid, at this level, there's an apparent contradiction.

2)The USD is strengthening because investors are increasingly convinced that the US economic recovery is real, broadening,deepening and sustainable. If this view is valid, then, it can't be that oil demand is weak. If the oil demand is so weak, then the US economic recovery can't be strong. If the recovery is so weak, then, how can the USD be strengtheing? So, which view is correct?

Looking at the various economic and financial evidences, it would appear that the strengthening USD is the most accurate evidence to rely on. The US economic recovery is certainly gathering momentum, broadening and deepening. The latest monthly job report and the sustained and substansial fall in weekly initial claims are solid evidence of a strong recovery forming in background. Given this evidence, the weakness in oil price is a function of the USD strenghening and not weak oil demand in US economy. The surge in the producer price index is most likely a temporary affair. In addition, the strong USD would also mean that higher producer prices need not be translated into higher retail prices. Consequently the federal reserve still can keep the interest rates where they're for a while longer and has time to decide its next course of action vis-a-vis its interest rate policy.

Monday, December 21, 2009

GENTING SP

GENTING SP, ocbc maintain BUY with target price $1.31
-Early 1Q10 opening draws nearer. Genting Singapore (GS) is drawing nearer to its soft opening in Jan 2010 - we understand that this would involve the casino, four hotels (likely to be progressive) and Universal Studio Singapore (USS). We believe that the construction and fitting out is on track with many segments already done up - one such attraction would be its 1600-seat Festive Grand Theatre as Resorts World Sentosa (RWS) will host the children's charity concert ChildAid from 19-21 Dec 2009.
-USS ticket prices affordable. GS has also recently announced the pricing for USS, which will open with 20 of its 24 attractions ready to thrill visitors. A 1-day adult pass will cost S$66 during the weekdays and this goes up to S$72 during the weekends; a 1-day child (under 12) pass would cost S$48 and S$52, respectively. As compared to the other regional theme parks, we think that the basic pricing point should be pretty attractive enough to draw both local and foreigner visitors. For example, the Warner Bros Movie World in Australia and the Disney Land and Universal Studios in Japan would set an adult back S$90 per day; the USS 1-day adult ticket offers a discount of between 20.1% and 26.7%, depending on whether it is a weekday or weekend pass. Only the Disney Land in Hong Kong is cheaper but not by much - the USS 1-day pass is only 5.5% to 15.1% more expensive.
-Casino likely to see strong opening. As for its main casino business, if the recent robust casino revenues reported in Macau in 3Q09 and Oct 2009 are any indication, we expect the RWS casino to see a strong opening. Based on our industry checks, we believe that GS should have no problems attracting high rollers into its casino here, where it has a ready pool to tap on from the Genting group of companies. We also do not see a shortage of walk-in customers as RWS has already confirmed 30 events bookings.
-Maintain BUY with S$1.31 fair value. Although we are only expecting RWS to turn positive in 2011, a quicker than-expected turnaround is possible should visitation numbers turn out to be better-than-expected. As such, we maintain our BUY rating and S$1.31 fair value. Risks to our estimates include a deterioration of the global economic recovery as well as costoverruns for RWS' latter phases.