Tuesday, March 02, 2010

Genting SP to test its medium-term uptrend line

Genting SP lost 4 cent to close at S$0.87 earlier today. Since posting about the double-top reversal for Genting SP (here), the stock has dropped about 18% in value. From the chart below, we can see that the stock is now resting on the medium-term uptrend line (SS) support at S$0.86-87. There is a good chance that this stock may put in a rebound from this level. For those who have been longing to get into Genting SP, I would say that gaining entry into this stock at the uptrend line is worth considering. However, I must say that I prefer Genting Malaysia (GENM) to Genting SP.


Chart: Genting SP's daily chart as at March 1, 2010 (Source: Yahoo Finance)
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18 comments:

  1. Seng KhoonTuesday, March 02, 2010 7:48:00 PM

    How about Batu Kawan and Genting Plantation outlook. Thank you

    ReplyDelete
  2. WK888Tuesday, March 02, 2010 8:34:00 PM

    GENM share performance is awful... too much cash in piggy bank but never shaare them, tat dissappointing

    ReplyDelete
  3. KENNY BLOGTuesday, March 02, 2010 9:21:00 PM

    Patience would rewards,like what Alex said: surprise could comes in the next 12 months.
    I would hold it and wait for the handsome dividend.
    My friend got buy GENS before this, now he is stuck in it with cost of around S$1.10.
    This stock draws too much attention before this and this make its share price goes beyond fundamental.
    Don't forget Lim's family sold at around S$0.60 before this.
    GENS is only worth around S$0.20-0.30 three year back before bidding the casino. With these factors, there is ample room for GENS share price to drops.
    Better to avoid! I feel lucky coz i didnt follow my friend that time and i bought GENM after reading Alex's blog.
    Thank You, Alex.

    ReplyDelete
  4. MaxWealth88Tuesday, March 02, 2010 9:28:00 PM

    hi alex,

    appreciate your comment on Success. notice it has strong fundamentals but price stuck in tight trading range.

    thanks
    maxwealth

    ReplyDelete
  5. WK888Tuesday, March 02, 2010 11:01:00 PM

    what price do u think GENM should worth? for me RM4.50 should not be a problem...

    ReplyDelete
  6. Alex LuWednesday, March 03, 2010 8:18:00 AM

    Hi Seng Khoon,

    I will look at Batu Kawan and Genting Plantation later.

    If you have some thoughts on these two companies, I would appreciate it if you can share them with us.

    ReplyDelete
  7. Alex LuWednesday, March 03, 2010 8:22:00 AM

    Hi Wedding Gifts,

    In my opinion, the fair value for GenM is about RM3.90. First I value the stock ex-cash at a PER multiple of 12 times (EPS of 23 sen multiplied by 12). Then, I add back the cash holdings of RM1.15 per share. This would give a value of about RM3.86.

    ReplyDelete
  8. Alex LuWednesday, March 03, 2010 8:26:00 AM

    Hi Kenny,

    Your observation on Genting SP is spot-on. Hopefully, the market will come around to our assessment of GenM soon, as it did with regards to Genting SP.

    ReplyDelete
  9. Alex LuWednesday, March 03, 2010 8:27:00 AM

    Hi MaxWealth88,

    Success is a good company, which I had posted on in May 2009. I will post an update shortly. Look out for it.

    ReplyDelete
  10. UnknownWednesday, March 03, 2010 12:23:00 PM

    Hi Alex,

    Based on each sectors performance of genting, what is ur opinion about the share price outlook for GENTING Berhad (3182)?

    ReplyDelete
  11. David ChanWednesday, March 03, 2010 1:40:00 PM

    Hi Alex,

    The strong support for this stock is 0.80 because of the right issue .

    ReplyDelete
  12. Touches of my experiece...Wednesday, March 03, 2010 2:29:00 PM

    hi alex,
    From what i see, there isn't any U-turn signal yet.
    i found the suport was 0.90 (fibo support) or 0.89 ( previuos resistnce turnd support)
    i m wondering is the falling coming the end.
    Thanks Alex.

    ReplyDelete
  13. Alex LuWednesday, March 03, 2010 2:45:00 PM

    Hi Chong,

    GENTING is still searching for a base, which could come when it hit RM6.00- the immediate horizontal support. Then again, it may not...

    ReplyDelete
  14. Alex LuWednesday, March 03, 2010 2:47:00 PM

    Hi David Chan,

    You could be right about the strong support for Genting SP at 0.80 because that was the right issue price.

    ReplyDelete
  15. Alex LuWednesday, March 03, 2010 2:56:00 PM

    Hi O,

    So far, Genting SP is holding quite well at S$0.86-87. Uptrend lines normally do not break on first attempt. Normally, rebounds happen on a test of uptrend lines. We will have to wait & see.

    ReplyDelete
  16. WK888Wednesday, March 03, 2010 4:27:00 PM

    GEN n GENM was trading at PE20x yrs b4... PE10+ is too cheap for them....

    ReplyDelete
  17. MarcoThursday, March 04, 2010 6:11:00 PM

    I guess GenM share is hit by the political instability. Just imagine if PKR take over the federal government in the next election.

    Anyhow I am still accumulating GenM stock at slow pace.

    ReplyDelete
  18. LaymanFriday, March 05, 2010 3:09:00 PM

    Dear Alex,

    I am a greenhorn in shares. Bought one 1lot of GENM at 2.20. Is it OK for me to add some more at this time? Hope to invest for my baby but not much cash at hand. Thank you very much.

    ReplyDelete