When Genting Singapore got listed, there was so much fanfare over it, probably because it is such a recognized name and that investors think that the house always wins.
While that may be true, whether an investor will achieve a good long term return on Genting Singapore remains to be seen.
My bias lead me away from Genting, until I realize that eventually cash flow will build up and stabilized and that it is a rather good business with a fixed barriers to entry.
If you look past the ethical issue, this is perhaps a business worth taking note.
While it may seem very cash flow generative, we don’t see much of it flowing into the cash holding. And they do need one issuance of perpetual preference shares to provide liquid capital.
Peering across FT.com, the Price earnings stands at 32 times.
That looks expensive, and it is if you compare to its cousins SJM Holdings, Wynn Macau, Nagacorp which are trading at 16-18 times PE.
Are they inferior to Genting? Doesn’t look like it on first glance. They have higher total dividend returns and generate good cash flow.
Perhaps sometimes we are just looking at the wrong places for good things.
- A Great Taiwanese Early Retirement Roundtable Discussion. - December 9, 2022
- Every S$100 Unconscious Monthly Spending Costs Singaporeans S$30,000 In the Long Run - December 8, 2022
- A High Certainty Income Plan With Glaring Holes - December 4, 2022