Sunday, May 25, 2008

Is genting fairly priced?


Genting is spending lots of money on the Singapore casino project and would only start to reap from it by end of 2010....will this giant be a good buy at current price below RM5.95? If the market is efficient, neither technical analysis nor fundamental analysis would be meaningful as none of them would be of any advantage to investors.... identifying systematic mispricing is impossible, any information on earning prospect and dividend is worthless, even insider info might be of little use if market is of strong efficiency...
i personally think malaysian market is a strong market, given the fact that insider trading is rampant... and our SC is just a white elephant... regardless, there will be exception and historical trend will continue to emerge and repeat itself...

Now back to Genting, believe I'm seeing a positive divergence in the making... and thought anything below RM5.75 is a good deal. The company’s plantation together with it’s oil and gas exposure also gives this company the best of both worlds now that the oil price stands at a staggering USD135 per barrel.

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