Review: Genting International

Many would have made thousands of dollars over the last 1 month buying Genting when it was $0.50 cents and now, its challenging the $1.00 mark. In fact, today it broke above the $1.00 mark again, though you got to take note it reached $1.10+ for what felt like 1 minute, 2 weeks ago.

Even I've joined in the speculation at $0.56, on its initial advance, and sold my shares at $0.79, worrying over the impending correction, which only happened after $1.10. And with me thinking it'll correct to $0.80--, I was only proved wrong when it went back up to $1.00 today.

So what do i think about this stock? Well, in my opinion, its a $2.00 stock, after 1 year of IR operation. Why? I invest on the belief that the only "pillars" holding shares at their prices are positive profit growth. Last year, Genting made a loss. There isn't really much growth in this company over the years anyway. Whats holding it at $1.00 is the excitement, and anticipation.

"Only buy shares that have good growth for the last few years. Anything else, its just speculation, otherwise known as gambling."

There isn't going to any profits for the next 3 years. In fact, the company's liability is going to increase to $3 billion dollars. Will the current share holders stay in this company for another 4 years to allow it to grow to $2.00. I don't think so, no matter how Genting is known to take care of her shareholders.

With far better shares out there supported by good financial results, I'll give Genting a miss, based on the fact that there isn't going to be any increase in operations for the next few years, my money goes to other stocks.