Resorts broke below RM3.00 psychological support

Resorts reported its results for 1Q2008 ending 31/3/2008 on May 28th. Its net profit dropped 13.6% q-o-q to RM297.4 million on the back of a 4.3%-decline in turnover to RM1.091 billion. The lower net profit is attributable to lower visitors' arrival to Genting Highlands Resort. When compared to the same quarter last year, its net profit increased by 25.1% on a 2.6%-increase in turnover. The main reason for the sharply higher net profit was because Resorts did not have to account for the results of Star Cruises since 31/7/2007. Resorts' share of loss in Star Cruises amounted to RM94.0 million for 1Q2007.



Resorts has been drifting lower since making a high of RM3.60 in July 2007. It should have good supports at horizontal line of RM2.80 & its immediate uptrend line at RM2.50. Subsequent horizontal line support will be at RM2.40 & the long-term uptrend line support will be at RM2.00.


Chart: Resorts' monthly chart as at June 11th (source: Quickcharts)

Resorts could be a good investment for the long-term. Unfortunately, even good stocks are indiscriminately sold off in a weak market. Further slide in Resorts' share price could present good opportunity to gather entry into this stock at attractive prices.