Saturday, February 27, 2010

Technical Analysis on Citigroup

Citigroup ST: turning up

Our pivot point stands at 3.1.
Our preference: As long as 3.1 is not broken down, we favour an upmove with 3.8 and then 4.35 as next targets.
Alternative scenario: Only the downside breakout of 3.1 will invalidate our bullish scenario. In this case, a decline should shape towards 2.53 at first, and then 2.06.
Comment: The daily indicators are turning up and are calling for a re-test of the 4.35 area.
Trend: ST limited rise; MT bullish.
Supports and resistances:

5.4 **
4.35 **
3.8 ***
3.45 last
3.1 ***
2.53 *
2.06 *

Global Economy is actually improving

Those who fear that the US economy will undergo a double dip recession in 2010 are running out reasons for maintaining such a pessimistic view because the surprise move by the Fed last week, is actually some tightening but it will be gradual.

The macro backdrop for the US and global econmy is actually improving, month by month, quarter by quarter. Please read more about economy indicator.

Our Forecast!
a)First Phase :-
The first phase of the rally (March 2009) was a logical reaction to the irrational selling at the end of 2008 and early 2009.
b)Second Phase:-
The second phase will start when investors are convinced that the current economy and earnings recovery are on a sustainable non-inflationary path and not just relying on government steroids. The second phase of the 2009 bull market should be starting sometime in the next few months.

Why CITIGROUP can survive in this crisis?

- Technology Innovative in 2009/2010 will boost American's income.
- Housing Price will go up slowly.
- Tax Payer Support on CITIGROUP
- Strong Hedge Fund Manager Promote the CITIGROUP as Great Investment.
- CITIBANK - one of the world largest consumer bank! If this bank collapse, someone will buy this bank. I guess Warren Buffet is interested on CITIBANK's asset too.

Wednesday, February 24, 2010

Casino in Singapore : Sands boost coming with Singapore Casino Opening

24 Feb 2010 - 17:18
* Casino to open on Apr 27, full opening on June 23
* Second Casion in Singapore after Genting's Resort World
* Casinos to diversify Singapore economy, boost tourism, GDP
* Analysts expect Sands casino to fare better than GENTING's

Las Vegas Sands will open the first phase of its Singapore casino on Apr 27, earlier than expected, bringing into play a project CEO Sheldon Adelson say will generate $1B in annual profits.

The 5.5B Marina Bay Sands casino will start operating along with 963 hotel rooms, part of the shopping mall and convention centre, and several dining outlets, Las Vegas Sands said in a statement on Wed.

The opening of the Marina Bay casino follows the heels of the opening of Singapore's first casino,rival Genting Singapore's Resort World at Sentosa, on Feb 14.

"Given Marina Bay Sands' centralized location and possibly a higher quality product offering, Resorts world will likely see challenges in attracting casino patronage", said Deutsche Bank analyst Aun-Ling Chia in a note to clients.
"Resorts World needs to ramp up fast to fully leverage on the first-mover advantage, " Chia said.

GENTING SP : Mixed Performance since its opening 10 days ago

Genting Singapore's Resorts World at Sentosa has had mixed performance since its opening 10 days ago. While the shops and eateries are packed and hotels fully booked, the number of people entering casino are much smaller than numbers reported by casinos in Macau after their opening.

-Straits Times ( Feb 24)

Tuesday, February 23, 2010

Boustead Holdings Bhd - Approval Granted

Bank Negara has approved the company's proposal to dispose its 80% stake in BH Insurance(M) Bhd to AXA Affin General insurance Bhd for RM362.6 million cash.

Monday, February 22, 2010

Genting Singapore from JP Morgan Research

Rating : Overweight
Price : S$0.94
Target Price : S$1.20

FY09 results slightly below; Spore casino opening within expectations

1) Result slightly below expectations; we maintain OW: Genting Singapore reported an FY09 core net loss of S$167MM vs. our estimate of S$149MM. We are not changing our rating.
2) Weaker UK operations in 4Q09: UK operations contributed S$23MM in FY09 and S$33MM in 9m09. The weaker 4Q09 numbers are due to a poorer luck factor and weaker attendance.
3) RWS casino operations within expectations, so far: Visitor arrivals to the casino were 20,000-25,000 per day in the first five days of operation, which could equate to 7.3MM visitors per annum (by simply extrapolating 20,000 visitors per day); this is above our estimate of 5MM visitors to the casino in FY10. This is in spite of the milder marketing efforts given the initial uncertainty of the opening date. Note that the company is maintaining its visitor arrival forecast of 13MM visitors within the first year of opening.
4) Share price has been weak lately and may remain weak in the short term: This, we believe, is due to (1) recent mandatory conversion of S$322MM of CBs into 338MM new shares, and (2) some initial issues such as the long lines outside the casino and less experienced dealers.
5) Price target, valuation, key risks: We remain OW on the stock with a fundamental PT of S$1.20 as we believe in the long-term prospects of the two Singapore IRs, while we believe that there is upside potential to our FY10E numbers (judging by the very preliminary numbers above). We reiterate the benefit Genting should reap from having 100% market share in the casino segment for at least the next three to five months before the opening of the Sands casino.