I guess most of Genting Singapore PLC (Genting SP) investors must be very jittery with the current situation on Genting SP. Many will be wondering how come Genting SP is being pounded this two days?
The main reason for the fall for Genting SP is very simple. Genting SP is doing a mandatory conversion of bonds into shares.
The owner of one of two resort casinos opening in the city-state this year said it will ask the holders of its outstanding convertible bonds, amountingto S$321.1 million ($229.7 million), to convert the bonds into shares at 95 Singapore cents per share by February 9th 2010. The bonds are originally due 2012.
Imagine they are converting those bonds to shares at only 95 Singapore cents, what do you expect the market to digest this information when Genting SP is hanging around the price of $1.20 of late?
Basically, the owner is giving a discount in price to convert those bonds to share. The reasons why he is doing this is not known but it’s not going down well to the investors.
Click here to read the Mandatory Conversion Notice.
Conclusion
There will be heavy selling and heavy drop in price in Genting SP in the short term but i am still bullish with the prospect of Genting SP. Don’t forget, they haven’t started business yet.
I am still holding my Genting SP tight and not letting it go a single bit. If the price is right, i will buy in more. I am keeping this baby for my future wedding use. I am pretty sure Genting SP won’t disappoint.
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My friend regret didnt sell when it reach 1.30…when I ask him to sell at 1.25 he also dont want. At last today he sold for 1.12 making more than 130K profit…suppose he can make RM200k,…This was good year for him..
sad sad~
@CkWong :- Wow your friend really bought many lots! ^^ At least he still made 130k! ^^
@jasonhor :- Nothing to be sad about. Long term for this baby is still good. Keep lo or when it dropped more, buy in more!
Which brokerage that you use to buy these Singapore listed shares?
Sorry if i got it wrong, it been a long time since i monitored the local share markets.
Hi Kampung Boy, do you mind to link to my blog?
I’ve added yours in my blog for quite sometimes, and your blog is the most popular outgoing link in my blog!
Thanks.
http://klsewin.blogspot.com
@Kris : I am using DMG partners which is a sister company of OSK.
Link to DMG :- http://www3.dmg.com.sg/
You not only can trade in Singapore but also in US and Hong Kong as well!
All in one but i only use DMG for my overseas stock purchases.
I am using OSK currently for the local market. Hope this helps!
yeah see now genting price is like 1.90+ i bought mine at 0.70cents a few years back and i kept till now before sellin no regrets.