GENS-C8 and GENS-CC dived after 2011 Q1 Result

What a joke!

GENS-C8 and GENS-CC dived after briefly raise a few cents when Genting Singapore's 2011's 1st quarter result being announced. Instead of moving higher, the share had just upped RM0.005 as at of today, 16th May 2011.

The performance of Resort World Sentosa having a much better result than Marina Bay Sands (MBS) doesn't lift it's stock higher. With MBS sinking 10% after their announcement, maybe Genting Singapore should felt relieve to be able to stay above it's last price before announcement instead of diving.

As for KLSE888 portfolio, a dilemma sets in:

1. Is GENS-C8 and GENS-CC a good pick
2. What's KLSE888 portfolio's next step: sell now to avoid potential further loss and scout for a new replacement, OR hold it till it finds a new promising stock to swap to?

As at of the price now (GENS-C8 at RM0.195 last done price, with buy queue at RM0.185, and GENS-CC at RM0.195 with buy queue at the same price), KLSE888 portfolio seems to suffer a paper loss of around RM800 (-13%, portfolio stands at RM5,300). 

While KLSE888 portfolio still have a surplus of RM300 (6%) since it's inception of RM5000, what shall be its next move to ensure it achieve its goal of 50% return in 6 months (now into the 3rd month)?

Related articles:

• Genting Singapore Achieved Record Revenue for 2011 Q1
• Sold MEGB (30% profit). KLSE888 portfolio @ RM6000 (20% profit)
• More about KLSE888 portfolio

Genting Singapore Achieved Record Revenue for 2011 Q1

Genting Singapore Plc achieved record revenue and adjusted EBITDA in the first quarter of 2011.

According to report released at 5:30pm, the group revenue for the first quarter of 2011 was S$922.6 million. Singapore IR experienced good win percentage and gaming volume in the first quarter of 2011 with steady growth in Universal Studio Singapore (“USS”) and the hotels. The daily average visitation to USS was about 7,400 with an average spending of S$88 per visitor. Singapore IR’s hotel occupancy was 79% with an average room rate of S$280. Group’s net profit in the first quarter of 2011 was S$305.4 million, where the following were significant drivers:

1. Singapore IR delivered the highest quarterly adjusted EBITDA of S$537.9 million with margin of 59% at the back of strong revenue growth; offset by,
   
2. Higher depreciation and amortisation of S$76.6 million in the first quarter of 2011 attributable to the full quarter effect of depreciation charges for 2011;
   
3. Higher finance costs of S$39.7 million was mainly due to charges related to the refinanced syndicated loan facility; and
   
4. Higher taxation of S$77.4 million in the first quarter of 2011 mainly from the higher deferred tax expenses due to temporary difference in property, plant & equipment.

Singapore IR recorded a stronger result for first quarter of 2011 compared to its competitor, Marina Bay Sands. EBITDA for Singapore IR was S$538 million, as compared to  Marina Bay Sands' S$351.6 million for the same period.


Hopefully, GENS-C8 and GENS-CC will soar high up in the sky...!!

Related articles:

• GENS-C8 at RM0.23. GENS-CC at RM0.13. KLSE888 Portfolio 6% growth in 3 weeks.
• Sold MEGB (30% profit). KLSE888 portfolio @ RM6000 (20% profit).
• More about KLSE888 portfolio

Genting Singapore Q1 result out in 12 May 2011.

Genting Singapore's first quarter result for 2011 shall be out on 12th May, 2011, after trading hours.

Recently, Genting Singapore's share fell after rival Las Vegas Sands missed analyst result target in their financial report, thus raising concerns about Genting Singapore's own result due out in the coming week.

As of today 5 May 2011, GENS-CC closed at RM0.10 and GENS-C8 closed at RM0.19. On KLSE888 portfolio, this downtrend had reversed the previous 3-week gain of 6%, thus making the portfolio having a -9% instead.

The question to ponder now is, will Genting Singapore suffers the fate of Marina Bay Sands, missing the analyst profit target?


Related articles:

• GENS-C8 at RM0.23. GENS-CC at RM0.13. KLSE888 Portfolio 6% growth in 3 weeks.
• Sold MEGB (30% profit). KLSE888 portfolio @ RM6000 (20% profit).
• More about KLSE888 portfolio

GENS-C8 at RM0.23. GENS-CC at RM0.13. KLSE888 Portfolio 6% growth in 3 weeks.

KLSE888 portfolio's growth have been on target since it's inception in March 2011. With RM5,000 capital, the portfolio had increased in size, with the latest total fund stands at around RM6600.

Currently, there are 2 stocks in this portfolio: GENS-C8 (bought at RM0.21) and GENS-CC (bought at RM0.12). Although there's a dip during the 2nd and 3rd week of April, this 2 stocks (call warrants) had managed a comeback. If KLSE888 had more funds, it shall definitely average down on those price dive!

At today's closing price, KLSE888 had managed to enjoy a paper gain of 6%. Hopefully, by the end of April 2011, it can hit a 10% gain as the portfolio outlined earlier this month as it dispose off MEGB to swap to these two counters.

Sold MEGB (30% profit). KLSE888 portfolio @ RM6000 (20% profit).

KLSE888 portfolio manage to sell MEGB at RM2.30 today. 30% of profit pocketed within a month. Overall, whole KLSE888 portfolio stands at around RM6000 (20% increase from RM5000 capital within 1 months since inception).

Why did I sell MEGB when it is still bullish? My reason being simple:

1. My target for MEGB is 30% profit.
   
   
2. I had identified another stock which I think will bull in the coming weeks: GENS-C8 and GENS-CC.
   I think GENS will outrun MEGB in short term, since MEGB had up by 30% since it's low last month.
   Thus, I had swapped MEGB with both GENS-C8 (RM0.21) & GENS-CC (RM0.12)

Reason for me to choose GENS-C8 and GENS-CC:

1. Genting Singapore is going to announce it's 1st quarter result on May 2011. I am betting it to be very good, due to CNY 2011 profit and also the disposal of the money-losing GEN UK business.
   
   
2. I think the current mother share price will reached SGD2.20 - 2.25 (today's closing price is SGD2.12, 52-week high was at SGD2.35).

Downside for picking GENS-C8 and GENS-CC:

1. Tan Sri Lim Kok Thay always give me surprises (e.g. last quarter loses).
   
2. I don't have luck with Genting :D

I shall monitor the coming weeks to determine whether my decision is right or not. My target is for a 10 - 20% profit exit (period around 2 weeks to 1 month).

Sold GENS-CD with 14% gain in 2 weeks!

Managed to dispose GENS-CD at RM0.10 with a gain of 14% in 2 weeks time.

With more cash now, I should proceed to stalk more penny stocks!

Penny stalk under KLSE888 radar:

1. GENS-CC & GENS-CD
2. PCHEM-CA (current premium at -1.08% @ 37.5 cents)
3. MUDAJYA-CC & MUDAJYA-CD
4. MAHSING-CB

MEGB met resistance at RM1.83

MEGB can't fly today due to resistance at RM1.83. It is unknown whether it was the doing of it's 2 previous investor (FMR LLC and Smallcap World Fund Inc), as both of them had ceased to be major shareholder (investor don't need to report buy/sell of company share once their shareholding falls below 5% of total company shares).

Anyhow, there seems to be a good news (which won't affect the earnings of MEGB): MEGB had entered into an agreement with Kinta Medical Centre Sdn Bhd (KMC) for both parties to jointly collaborate on academic research and development in physiotherapy with technical assistance from KMC at a centre to be named Masterskill-KMC Physiotherapy Centre to be set up by Masterskill in Kinta Medical Centre owned by KMC, to engage in the following with operational costs and expenses incurred by the Masterskill-KMC Physiotherapy Centre to be borne by KMC and any profit received by Masterskill-KMC Physiotherapy Centre shall be distributed equally between Masterskill and KMC for a period of five (5) years commencing from 25 March 2011:-

1. providing the physiotherapy education and training programme (“Education”);
2. research and development activities;
3. providing physiotherapy services to the public and to accept Masterskill’s students for clinical attachment purpose; and
4. such other business, purpose or activity as is necessary or convenient to the conduct, promotion or attainment of the clauses (1) and (2) above.

I am still holding MEGB shares (with 3.4% profit at RM1.83), and I shall decide within this week on whether to swap with another potential stock to take a quick profit, or wait, as the current resistant seems to be the doing of FMR and Smallcap.

Why KLSE888 portfolio chooses MEGB & GENS?

Why I pick MEGB:

1. Earnings are strong, PE 7.5 (latest quarter earning = 9cts, future PE = 5.2 (i.e. RM1.87 / (9cts x 4 quarter) )
   
   
2. It had fallen to recent new low, with no clear reason except huge selling by it's investor FMR LLC & Smallcap World Fund Inc and not by it's founder.
   
   IPO @RM3.50, 52-week high @RM4.30 (29/7/10), 52-week low @RM1.67 (15/3/11)

Why I pick GENS-CD:

1. Recent new low RM0.10 as at today, 52-week high @ RM0.21 (29/12/10), low @ RM0.08 (15/3/11).
   
   
2. Positive future growth. Asian gaming stocks will only rise (e.g. GENTING). Its rival, Marina Bay Sands is trying to buy more lands, which means good prospect. Australia casino king is also commenting that world 2 most profitable casinos is currently in Singapore!
   
   
3. It had sold it's money losing GEN UK to GENM. So, now it can concentrate on it's Sg business!!

I had allocated 80% for a 3-month OR 15-30% exit plan. (Medium RISK)
Another 20% shall be for a 1 to 3-week OR 10% exit plan. (High RISK)

Short term target: Grow my fund at 50% within 6 months.

Recent Purchase

Since starting this blog, I have the intention of recording my trade experience and also my portfolio performance. I had intended to setup a RM5,000 fund and see how it grows.

Currently, my portfolio is as follow:
GENS-CD    (bought @ 0.085)
MEGB          (bought @ 1.76)

RM5,000 is not a big figure, so the quantity of stocks I can play along is quite limited. Mostly will be speculative penny shares, warrants, and also those that had fallen sharply.

In my coming post I shall reveal why I pick the above stocks and my thought on the exit plan.