Genting dividends in two to three years if ...

Jo-ann Huang

joannhuang@mediacorp.com.sg

SINGAPORE

And despite that caution, Genting shareholders told MediaCorp at an extraordinary general meeting yesterday that they remain confident the firm is on track to repay its massive debt.

It posted a hefty net profit of $397 million in the quarter ended June — overturning a $51 million loss in the previous year.

But Genting remains unable to declare any cash dividends as it is tied to a loan structure which restricts the firm from paying any dividends until next year or after the loan has been fully paid off.

Genting was responding to some of the 1,000 shareholders that attended the meeting, who had asked why the company had kept a zero-dividend policy since its listing in 2005.

On the other hand, some shareholders told MediaCorp they are investing in Genting for the long-term and are hopeful they will see returns in due time.

“By not paying dividends, the funds remain in the company.

They can be used to repay loans or finance any capital expenditure, or used as loan repayment,” said shareholder Horace Tan.

The S$4.2-billion loan was secured in Feb 2008 and funded about 60 per cent of the development of Resorts World Sentosa.

At the same time, shareholders have approved the company’s proposed divestment of its British operations. Genting UK will be handed over to Genting Malaysia for about £340 million (some $688 million at the time).

This is far less than the original purchase price of £626 million when Genting Malaysia bought British casino operators Stanley Leisure in 2006 and renamed it Genting UK.

Genting UK posted losses to the tune of £184.6 million for the three months ended March 31.

Genting Singapore’s share price rose three cents or two per cent yesterday to close at $1.55.— Genting Singapore shareholders can look forward to cash dividends in two to three years time, provided the company remains profitable and has paid off its $4.2-billion debt.

That is entirely possible...

    But it needs a few power elephants to give it another oomphy push...

         After that, it will be game over...

              and then the long gradual slide begins...

Everything is overboard, over sold (Prices is due for technical correction). Yes-bearable. Worst is if it drop bit by bit, many will get stuck holding till another new round appear

A huge super catch up phase on it Super volume last Friday 13th Aug 2010.

teeth53 read as the best moment and news to break it to Punters. (Investors, Day Traders and Speculators) does all the catch up, elements of certain surprises on it best earning last 2nd Q.

Hope is farther weaken by bad news, no dividends for this 3Q, till debt payable and pay up. Closed at $1.53c -0.02c

Last Tuesday 17-8-2010 (Closed at $1.52ct after hitting a high of $1.68ct)

(T+3, T+...margin calling / force selling in coming week, most concern with unless one has deep pocket)

teeth53 thot - (For short term oni) deal yesterday at $1.54, if did't hold position may have opportunties to buy back.

Can you short it all the way down to $1.30 for me? Cos I will be there with a big bucket.....hehe

Today is still a good day to Short Genting SP.

Now trading at $1.51.

Good luck.