So I did a simple maths to estimate Resorts "fair price," based on dividend declared of 4 sen. Assuming Resorts recorded dividend yield of 3% and pay 4 sen twice a year, "fair price"= 8 sen/0.03 = 267. So fair price of Resorts is approx. RM2.67
Closing at RM2.80 today, it's just about 5% over fair price. I think Resorts will go higher given the liquidity in the rally. It's liquidity over the fundamentals in short term trading and scalping. Enjoy the ride on the coat-tails of the big boys who has the liquidity...
OSK rated Resorts a buy with TP RM3.25
Resorts World Bhd surged 8.1 per cent to RM2.79, the steepest gain since July 20, 2007, after OSK Research raised its rating amid speculation its parent, Asia’s biggest casino operator, may invest in a unit of MGM Mirage.
Genting Bhd, which owns 47 per cent of Resorts World, jumped 6.7 per cent to RM5.55
OSK upgraded Resorts World’s stock rating to “buy” and increased its target price to RM3.25 from RM2.58, saying were cheap valuation compared with Genting. Resorts World “had always traded at a 10 per cent to 20 per cent premium to Genting as it is indeed the group’s main earnings and cash-generative outfit,” OSK analyst Keith Wee said in a note to clients today.
Investing in MGM Grand Macau “could certainly pave the way for the group’s long-awaited entry into Macau’s gaming market,” he added.