Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Tuesday, May 26, 2009

Resorts and Genting Losing Steam

Money is flowing out of this two counters. Resorts initially climbed to 2.89 but then slide to 2.75, below its opening price. Genting also closed lower yesterday.
Investors are just not convinced about the recent report that propose Genting or Resorts may be taking a stake in Macau gaming interest through MGM Macau. They just panic yesterday on OSK call to buy Resorts with RM2.58 as the entry price.
OSK Research made a buy call on Resorts at 2.58 with TP 3.25. This untimely call by OSK is just unprofessional and improper. I sympathise with those bought in at higher price than this call. Such a call definitely will cause panic selling in this counter and loss to many.

For those who have not bought in, wait for price to correct in 2.30 - 2.45 range which is a better entry range. Resort "fair price" is 2.66 so the said entry range is 10 % below. This range may never come so you'll have to find the strongest support price to make your entry.

Look also at the possible short term gain (price action) to make your entry. You are buying in to make a high probability gain in active counters trading, not hold long term. When price consolidates, make your exit.

To buy and hold long term, look for good dividend counters with reasonable liquidity.

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