On 2 November 2018, Malaysia’s Finance Minister Lim Guan Eng has announced a revision in annual casino license fees from RM 120 million to RM 150 million and a rise of 10% in casino duties from 25% to 35% starting on 1 January 2019.
Subsequently, Genting Malaysia Bhd has experienced a straight tumble in stock price from RM 5.55 to RM 3.58 presently, a 35.5% fall in just a few days.
Source: Yahoo! Finance
Here, I would like to answer two questions:
- How to avoid buying shares of Genting Malaysia at RM 5.50 – RM 6.00 recorded throughout 2017 and early 2018?
- Is this a good time to grab Genting Malaysia at RM 3.58?
For a start, my answer involves a study on Genting Malaysia’s fundamentals as I want to know whether it is of ‘investment-grade’. Then, I would use a handful of valuation ...
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