Seems Genting Singapore Plc’s first venture in the island state of Singapore is after all not that fruitful or adventures and the road ahead looks rather bumpy. The stocks of Singapore Genting Plc fell for almost for the fourth day and are hit by the talks of it receiving lesser visitors than expected or required.
Some analysts also owe the decline to the opening of a new resort facility in Singapore this Valentines’ Day, Resorts World Sentosa. Apparently the resort group is giving the casino major a big run for its customers and it has already slumped by 28 percent this year. Its performance on the benchmark Straits Times Index is rather dismal.
Towards the end of 2009, the stocks of Genting Singapore stood at an all time high of S$1.30 and the investors expected a further increase in the stock prices and revenue as they were optimistic about the profitability of its ventures in Singapore. And they had every reason to do so because the $4.7 billion worth casino venture attracted a total of 60, 000 patrons within the first three days of its opening.
But that’s not enough. The casino must have customers to the tune of 34,000 daily who also spend an amount equal to or more than $100 a day so that the casino is able to meet Noel-Johnson’s “below consensus estimates”.
But then not all investors are despondent about the plummeting stock of Genting Singapore. Some will retain their holdings because they are certain that once the company completes the other parts of its Singapore venture, the outlook towards it would change and the stock prices will improve.
