KLSE : Top 5 picks in 2011

Please share your top 5 KLSE stock picks in 2010
1) Counter Name (code) - Reason (valuation/prospect/future growth/mega trend)
2)
3)
4)
5)

Post your comments here. We would like to hear from you. Thanks.

Hong Kong : Face High Inflation

Hong Kong will face higher inflation next year as it attracts more capital because of US monetary easing policies, and the appreciating Chinese Yuan increases food costs, Financial Secretary John Tsang said. The US measures may also boost energy prices, and the city’s government is “closely monitoring” the impact on low- income residents, Tsang said. Hong Kong, which pegs its currency to the US dollar, imports most of its fresh food from China. Hong Kong policy makers have said the US Federal Reserve’s plan to buy USD600 billion of Treasury securities will contribute to an asset bubble risk in the city because of excess liquidity. (Bloomberg)

Boustead : Quarterly Result

Quarterly Result
9MFY10 core net profit of RM253.6m accounting for 66.9% and 61.6% of our and consensus full-year estimates. We consider this within our expectation as we expect a stronger 4Q arising from higher CPO prices (which has risen by 12.6% since Oct).

Rating
Still undervalued despite recent share price run up, P/E and P/B still not demanding, relatively high and quarterly net dividend yield, double-digit earnings growth in FY10-11 and market yet to fully appreciate the hidden values.

Valuation
Target price maintained at RM6.82 (at 10% holding company discount to unchanged SOP of RM7.58).


Disclosure :-
Author has an interest in Boustead Holding Bhd

Technical Analysis on DJIA

Our preference: as long as 11200 is not broken up, we favour a down move with 10915 and then 10865 as next targets.

Alternative scenario: a downside breakout of 11200 would open the way to 10865.

Sell Media

Latest Transaction
- Sold out Media because of global sell down. Temporary raise some cash in my porfolio to reduce total risk.

3Q below on lower revenue and margin; buy on weakness

GENS reports 3Q EBITDA of S$347.6m (-31% QoQ), ex UK operation. RWS 3Q Ebitda of S$346.5m came in 8.8% below DB's S$380m and at lower end of consensus range of S$340-420m. RWS revenue fell 15% QoQ to S$731.8m on normalised VIP hold (vs hold heavy in 2Q). Property EBITDA margin fell to 47.3% (vs 2Q at 58.5% and DBe of 50.8%). NP of S$187.8m came in 11% below DB's S$212m. Bad debt provision was S$23.5m in 3Q (similar to 2Q). For 9mFY10, GENS achieves EBITDA of S$995.1m (inc UK) vs consensus S$1.35bn for FY10E. Despite weaker 3Q results and a seasonally stronger 4Q, street est which implies 4Q EBITDA of S$356m, is still too low. Given the weaker than expected 3Q results, any share price weakness offers good buying opportunity for exposure to Singapore's robust gaming market. We maintain RWS full year Ebitda projection of S$1.426bn, suggesting 4Q Ebitda of S$470m. On margin, GENS guided EBITDA margin of 47-50%, lower than DB's 54% projected for 2011 onwards.

S$9.4m/day gross gaming revenue in 3Q. We est that Singapore gaming market expanded c 8% QoQ to S$17.2m/day in 3Q. RWS continued to lead with c 55% market share (vs 69% in 2Q). For the Q, RWS has 470 tables and 1200 slots (vs 631 tables and 1798 slots at MBS). Hotels achieved AOR of 71%; ARR of S$250/nite (vs S$263 in 2Q) and USS daily visitation rose slightly to 7,500 with avg spent of S$81/pax (vs S$84 in 2Q).

Continuous ramping up. Started with 300 tables, GENS now has 470 and likely to end the year with more than 500 tables. The reopening of Battlestar Galactica is scheduled for early next year while two more new USS rides will be introduced by mid and 2H 2011, bringing USS capacity to 18,000 from 8,000 currently. West zone is scheduled to start operations progressively from mid 2011, beginning with the Maritime Xperiential Museum.