Genting SP Heart Broken La, SWAP SWAP SWAP.

I had disposed all my Genting SP last week. It is enough for me, i had been keeping this stock since early 2012 until now, and it is really funny that by the time when i buy in, the PE is ~18 with the price of S$1.52, but today, it is at S$1.475 and the PE is way high at 28!! What is happening? One thing i observes along this ~2years period, Genting SP had never perform any batter either in gambling or its entertainment theme park.

One of the big challenge for Genting is MBS, well, in a small country like Singapore and there are 2 casino is really big matter! when i buy in genting SP, I'm expecting a tough competition here and standing a chance of 50-50 for this 2 casinos, but with what i see in pass 2 years, genting had been losing to MBS at almost every FY regardless of the wining rate and the VIP occupy rate. Well, i do expose my self to both of the casino recently and the feeling i have is they are on different standard where MBS is giving me more like world class casino while GSP is like low class casino in terms of the game and the service, no wander the VIP all goes to MBS... haha.

Back to the theme park portion, well, it have the Marine park opened recently, however, the return of this section is way slow to cover the expansion, i think that is why the profit of the company is like fully rely on the gambling game. So if GSP cannot do well on casino, it will keep at this situation at all the time. The fair value for GSP was expect to be ~SGD1 only with latest EPS. Talk about the future, unless GSP change the way they run the casino, else the future is not so promising, personally, i would think that they need to keep the VIP from graping away by MBS and to do this, they need to improve the service and the culture of the casino, lets compare the casino in Vegas and Macau, if you put this 2 in Singapore, which one do you think the foreigner will prefer to spend their money?? :)

The lesson learned from Genting SP is never do any forecasting based on assume (i assume the company will be getting batter with new facility opened such as Marine park but i over look the business culture of GSP and the huge competition of gambling industry in Singapore, only realize it after i visit the MBS and GSP by my self), this lesson cost me ~1.4k SGD.... very ex... haha

For the mean time i had bot in 90lots of SabanaREIT @ S$1.095. I'm looking at the high DY for this company. Since i had allocated some capital in SGX as well, I'm planning to invest on high DY or stable counter on SGX while remain active in KLSE. few reasons is: 1) SGD exchange rate is all ways stand high and i would like to take this advantage to keep some high DY stock from SGX. 2) I do not have deep analysis on SGX counters, so it is a bit risky for me to shot on SGX counter. with this, swapping my fund from SGP to REIT stock will be my plan in next few months/yrs for SGX game plan.

Back to Sabana, why Sabana? Below is the data i capture from "SGX REIT DATA" with latest QE data, filtered by only REIT for industrial.

Among all the REIT, I'm looking at higher DY,with low PTB. gearing is subjected to me as long as it is manageable. Sabana REIT just reported 100% occupied on all it portfolio and it is a good news here. On top of this, the DY is the highest among all other industrial REIT in SG. PTB is slightly above 1 (@1.03) but with the share price close to 52Wk low and PE below 10. SolidBuild REIT is new IPO and its under my monitor as well, the good thing of SBREIT is there are ~42% of her portfolio is Biz Park which is having more stable income and lower risk. :)

 REIT in Singapore might be more attractive to me as compare to REIT in Malaysia due to the land value in Singapore. On top of that, i prefer industrial REIT in Singapore due to the globally and the Singapore government strategic. the risk is fairly low as compare to Malaysia industrial REIT. The only thing that might not so good for Singapore REIT is the gearing is high, which mean they need to maintain higher occupy rate so that the DEBT can be paid on-time.