Friday, July 02, 2010

Genting Singapore expected to gain but dropped eventually

Initially, I thought shares of Genting Singapore would gain as the gaming group offers to sell its money-losing U.K. operations to Genting Malaysia in a move set to ease pressure on its bottomline. Impairment loss of S$478.1 million relating to U.K. operations is largely responsible for Genting Singapore's 1Q10 S$396.3 million net loss. With the sale, Genting Singapore is now a pure play on Singapore and will not be dragged down by the continued underperformance of the U.K. business. This is supposed to be a positive news for Genting Singapore.

Despite this positive news, Genting Singapore ended lower in today's trade.

I do not hold Genting Singapore shares.

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