I always remember these words by Warren Buffett - "Be Fearful when Others are Greedy, and Greedy when Others are Fearful." Not sure if I should comment on this but recently the hottest topic in Singapore is probably about the 14% increase in Genting's Share Price!
Ref: http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_566194.html
Well my take is that, the main reason why it continues to increase the moment, it hits the headline is because most others are greedy I supposed. When such news come out, my idea is that it's probably time to sell if away, if I'm a trader, but anyway, I don't have any of their shares. 'cos there's really not much reason why a stock price can keep on going up every few days because of an article that says the price went up by 14%. How long can this news last?
But the good thing is that the main reason behind the increase in stock price is due to the high increase in profits but then, as a gambling firm, I knew that most of the time, the casino should make money but normally the excitement of it being new won't last very long, at most 1 yr or so in my take. Then it'll probably cool off and becomes normal. In fact, the amount of profit should be somewhat similar in terms of proportion to that in genting highlands isn't it? 'cos eventually, everything will become like normal and the guest number should drop a bit. I'd give them a 50% discount in revenue during calculation of their stock intrinsic value myself. Because, it feels safer.
This is just my personal take.
Ref: http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_566194.html
Well my take is that, the main reason why it continues to increase the moment, it hits the headline is because most others are greedy I supposed. When such news come out, my idea is that it's probably time to sell if away, if I'm a trader, but anyway, I don't have any of their shares. 'cos there's really not much reason why a stock price can keep on going up every few days because of an article that says the price went up by 14%. How long can this news last?
But the good thing is that the main reason behind the increase in stock price is due to the high increase in profits but then, as a gambling firm, I knew that most of the time, the casino should make money but normally the excitement of it being new won't last very long, at most 1 yr or so in my take. Then it'll probably cool off and becomes normal. In fact, the amount of profit should be somewhat similar in terms of proportion to that in genting highlands isn't it? 'cos eventually, everything will become like normal and the guest number should drop a bit. I'd give them a 50% discount in revenue during calculation of their stock intrinsic value myself. Because, it feels safer.
This is just my personal take.
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