The Gentings-Resorts Poser
Both counters went ex-subdivision on 11th April 2007. It reaped hefty gains that day. Gentings gained 50 sen while Resorts World perked 28 sen. But the joy was short-lived. The following two days was the reverse and both counters lost heavily. Gentings went down as low as RM8.35 sen and Resorts went down to RM3.40.
Why the contradictory reaction? Some obvious reasons. Since both counters made so much gains, it is only natural for investors to take profit. Secondly, as the index has gone beyond 1,300, many retailers have been spooked to sell; keeping a lot or two for souvenirs. Then we have the local analysts saying that both counters are full y valued and would not have any "upsides" left.
My opinion: Both counters are 'solid blues' and should be part of a good stock portfolio. Resorts have never given a public share offer except for a bumiputra offer way back in mid 1980's. Genting's share price have always been astronomical; beyond the reach of the layman. It is now inexpensive and it's time to collect Genting shares again.
Today Gentings ended 10 sen better at RM8.90 but Resorts was at its overnight level of RM3.54. Whatever its price, both are good buys
Quote of the Day:
All progress occurs because people dare to be different." Henry Milner
Heartsong
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