Warren Buffet's second leg up postulation has come early for one specific counter- Genting Berhad.
Last month, it almost touched the RM7.00 psychological barrier. Today it broke through and is running and hopping like a kangaroo on heat!
Shares in Genting Berhad, Asia's largest casino operator by market share, were higher as the stock is seen as a cheaper option for exposure to its Singapore casino business than its unit, Genting Singapore.
Genting shares have gained 4.6 percent to 7.27 ringgit a share on volume of 7.8 million shares by noon.
Genting Singapore was up 4.5 percent at S$1.17.
"The upside in Genting lies in two key angles, 1) the explicit re-rating of Genting Singapore as a subsidiary and 2) the narrowing of the "discount to entry" as a parent (company)," said CLSA in a research note to Reuters published on Monday.
"The current share price is pricing in a value of S$0.63 per share for Genting Singapore and we thus advocate a buy call on Genting Berhad on the premise that investors are paying around 50 percent "discount to entry", said CLSA.
Malaysian gaming stocks are also playing catch-up with their regional peers, which rose sharply last week on reports gaming revenue in Macau, the world's top gambling market, rose to a new high in August, said a dealer from a local brokerage.
PS: Genting went below RM7.00 on 9 September after Genting Singapore announced a S$1 billion rights issue.
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