GENTING Singapore : Universal Studio

Yahoo! SEA takes a sneak peek at Universal Studios Singapore @ Yahoo! Video

Technical Analysis on CITIGROUP (19 March 2010)

We move up our pivot point to 3.5.

Our preference: As long as 3.5 is not broken down, we favour an upmove with 4.3 and then 5 as next targets.
Alternative scenario: Only the downside breakout of 3.5 will invalidate our bullish scenario. In this case, a decline should shape towards 3.12 at first, and then 2.55.
Comment: The daily technical indicators are bullish and call for a rise towards 5 in the medium term.
Trend: ST limited rise; MT bullish.
Supports and resistances:
5.4 **
5 **
4.3 ***
3.96 last
3.5 ***
3.12 *
2.55 *

Insider Trade :- Tan Sri Chen Hen Jem bought Parkson

Date           B/S    Counter  Unit of Shares
16/3/2010  BUY Parkson 3,100,000 Tan Sri Chen Heng Jem


Total New Balance of shares owned by Tan Sri Chen Heng Jem
237,889,000

GST in Msia

The proposed Goods and Services Tax (GST) is necessary to increase Government revenue and a single issue should not be a cause to derail its implementation, said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok. The GST, which has been postponed indefinitely, is aimed at widening the tax base and reducing the country's deficit. The Government had planned to introduce the GST at 4%, replacing the current sales tax and service tax. (BT)

US - Output gain points to more investment

Industrial production unexpectedly rose in February, due in part to gains in demand for computers and semiconductors that signal the pickup in US business investment is being sustained. Output climbed 0.1%, the eighth consecutive increase, as utility use and mining increased, figures from the Federal Reserve showed in Washington. Another Fed report showed factories in New York kept expanding in March as orders and employment grew. (Bloomberg)

GENTING SP: BUY RECOMMENDATIOn

Maintain BUY with lower TP of SGD1.13. We have lowered our target price in tandem with our 3% to 6% cut in EBITDA estimates from lower visitation assumptions and lag in ramping up of table capacity. The share price has retraced by more than 26% over the past two months. Although the current valuation at 13.1x FY11 EV/EBITDA is still relatively expensive vs the regional peer average of 8x to 14x, RWS is a strong long-term growth proposition and a share price de-rating to below 80 cents will be a strong BUY (11x FY11 EV/EBITDA). The group’s balance sheet is one of the strongest among gaming companies after Genting Malaysia. We think the market may need 3-6 months to digest the company’s operating and financial performance before drawing a clearer picture of its earnings visibility and what are deemed sustainable trends, thus providing more opportunities to accumulate on weakness.

Inflation

Definition : Inflation is a continuous increase in the prices of goods and services. This implies a continuous decline in the purchasing power of money.

Example : Inflation Senario

Assume an economy only has one good - orange
Price of 1 orange - 40 cents
Consumer Mr. Lee's income = RM100/month, can buy RM250 oranges.
Seller Mr Tan's income = 1000 oranges @0.4 = RM400

Next 3 years, price of orange= 50 cents
Inflation rate = 25%
Consumer Mr. Lee's income = RM100 per month can buy 200 oranges.
Seller Mr. Tan's income = 1000 oranges @0.5 = RM500.

Consumer Mr. Lee is worse off.
Seller Mr. Tan is better off.


Question: As consumer/employee, do you prepare yourself to hedge against inflation in coming years? Is your income higher than inflation?