Resorts World closed lower to RM2.89 after hitting its 52-week low of RM2.86 friday. The
counter has fallen 37% from a high of RM4.60 on 24 Jul 07. now ah,sentimen not good ppl , cautious consumer sentiment amid the recent petrol price since june 05 thusday 2008 hike rm2.70 from rm1.92.
Now everything up chicken rm7/kg ,rice up 100% so ppl keep money to buy food rather than go Genting Highlands to gamble to lose more money.
Fundamentally, company has a healthy balance sheet, backed by a net cash position of
RM3.16b or 54 sen per share and has a monopoly advantage in casino business. For the past 3 years, it traded at a PER band of 12.0x to 26.6x and it is now at 12.5x based on FY08 EPS forecast of 23.3 sen.
The valuation now is relatively cheap and the market may have over discounted the potential risk.
(no body can say cheap unless it’s a bottom)
Technical perspective, share price has broken down a triangle formation with neckline (now strong resistance) at RM3.15. The ultimate objective of this formation is RM1.70.po at 1.70 here then ppl can buy la
Can it reach there ah ?if I know I am billionaire olredi no need to write blogging futher more i cannot buy non syariah compliant though its just a game.
Chart see strong support at RM2.60, being the channel support on its weekly chart. From the current level, upside potential (on any rebound to the resistance) is 8.2% while downside risk (at RM2.60 supportlevel) is 10.7%..you culculate la the risk reward ratio 8.2/10.7 aaiya not good man .
