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Why bought Genting-Wa

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Publish date: Mon, 24 Apr 2017, 11:26 AM
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This is a company warrant issued by Genting Berhad with below information: 

Exercise Price: 7.96 
Ratio: 1 to 1 
Expired date: 18th December 2018 

Buy in Genting-warrant instead of Genting is because of leverage play, with small amount of money, you can enjoy the appreciation value of Genting. But buyer have to pay concern on the time-frame, which meant Genting share price must hike before 18th December 2018 for us to exit (for those got no plan & no money to convert it to Genting share). On the other hand, you are also carry a certain amount of risk, if Genting share price is not going up as per expectation. 

Valuation of Genting can be performed with simple math calculation,: 
Below 3 listed company are owned by Genting, which we can estimate the value easily base on the market capital as of 11th April 2017. 

1.52.6% of Genting Plantation, (0.526 x 9129M) = 4,802M 
2.49.3% of Genting Malaysia, (0.493 x 31180M ) =15,372M 
3.52.9% of Genting Singapore, ( 0.529 x 12.88B x 3) =20,442M 

1+2+3 = 40,615M 

Total Genting share = 3,726M 
Total Genting warrant share = 740M 

40,615M/ 3,726M = RM 10.90 
40,615M/ (3,726M+740M) = RM 9.10 --->included warrant’s share 

Bear in minds, Genting still owns others Asset, such as: Energy section, oil & gas, Investment holding and management etc which is not put in above valuation. 

I long/optimistic on Genting-wa hoping that: 

1.20 century FOX world will be a positive catalyst to GenMalaysia, 

2.More China visitors come to visit Malaysia/ Singapore, most of them will visit Genting Casino 

3.Higher CPO price and FFB production boost GenP share price 

4.Public listed the Energy arm 

5.And the most important point is predicted that Genting share price will going up,else, apasal beli ini counter?!!? Simple as that! 

Disclosure: I/ we have long position in above mentioned stocks, and no plans to sell any holding position within 5 trading days. 
11th Apr 2017

GENTING (3182)
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3 people like this. Showing 14 of 14 comments

laifhoy

Hi. You omitted the 5,890m cash received upon warrant conversion. That will increase Genting value to 10.42 from 9.10 originally.

2017-04-24 12:15

stockmanmy

put it this way.....


there is no better blue chip in the whole of Malaysia than Genting.

One counter is a complete diversification of domestic and foreign earnings, casino, plantations, power, infrastructures, theme parks, entertainment...and until recently, even cancer cures.......lol


and no lack of catalysts.

2017-04-24 13:13

stockmanmy

do you realise Genting is trader around NTA meaning all the dozens of casino licences are thrown in FOC.?

2017-04-24 13:18

Undi_PAS

We hate corrupt BN and many families destroyed due to Ah Long for gambling addicts. We will change everything if come to power in GE 14.

2017-04-24 13:28

VenFx

Manmy,
Which counter has the equipment and expertise to cure stubborn diseases ?

2017-04-24 13:29

stockmanmy

How did your PAS members get into the casino?

Undi_PAS > Apr 24, 2017 01:28 PM | Report Abuse

We hate corrupt BN and many families destroyed due to Ah Long for gambling addicts. We will change everything if come to power in GE 14.

2017-04-24 13:44

stockmanmy

if you know tell me.....I heard Genting's Tau failed the last stage.


VenFx > Apr 24, 2017 01:29 PM | Report Abuse

Manmy,
Which counter has the equipment and expertise to cure stubborn diseases ?

2017-04-24 13:45

stockmanmy

From KLSE, my best hope for original research in technology is Vitrox....those guys are seriously good and spend tonnes of money on R & D

2017-04-24 13:48

VenFx

Agree your view in Vitrox ... the next Mpi perhaps in ATE

2017-04-24 13:57

pisang

i got no plan to put the article here, but since the first day i have done this writing, i failed to upload it on one of the chinese forum- investalkcock, its really pissed me off!

2017-04-24 18:04

pisang

i'm totally agreed with you! cheers buddy

@stockmanmy do you realise Genting is trader around NTA meaning all the dozens of casino licences are thrown in FOC.?
24/04/2017 13:18

2017-04-24 18:05

pisang

mate, you are too young and too..., this will hardly happen, coming GE will belongs to BN, remember our mainland china friend are so much welcome by our PM.

@Undi_PAS We hate corrupt BN and many families destroyed due to Ah Long for gambling addicts. We will change everything if come to power in GE 14.
24/04/2017 13:28

2017-04-24 18:09

i3gambler

Please learn to calculate the fair value of GENTING-WA.

1) Interest Rate: This is the expected mother share future gain (annualised), assume it is 6%.

2) Volatility: This is the future volatility, but then how do we know what is the future volatility? So just assume equal to the previous 90 days volatility, it is 19.49%.

3) Dividwnd Yield: 0.87%.


Then use any option calculator, you will find the fair value of GENTING-WA is RM2.53.

2017-04-24 18:29

pisang

dude,you remind me one of the warrant guru here, he used to estimate the fair value of call warrant by using complex mathematic excel sheet . Anyways,thanks for your sharing.

@i3gambler,
Then use any option calculator, you will find the fair value of GENTING-WA is RM2.53.

2017-04-24 19:36

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