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.

Effect of Genting's Asiatic disposition

Back then many have been speculating that Genting will dispose Asiatic and now that IOICorp has voiced it's interest in aquisition of companies to increase it's landbank size. Given the fact that IOI's landbank has almost reach its capacity, it make sense for it to aquire Asiatic. With Asiatic's huge landbank in Indonesia via it's JV with SG and IOI's desire to expand to Indonesia, i think both parties can work something out.

Genting holds 55% percent stake in Asiatic is valued at about 4.53B. The disposal of Asiatic will streamline Genting's group and allow them to focus more on the main core business and also help to improve Genting's cash flow ever since they started funding for the Singapore casino project.

From chart wise, Genting stock price has been falling since it's share split event in the mid of April. Investors took the news positively and the stock price rose about 5% since the opening of trading.

50 days SMA still could serve as a support level and today's closing will only reinforced it. Should the deal materialize soon, it will only drive Genting's share price further away from the oversold range.