Genting International Public Ltd Co. (Genting)

Genting is known for developing Resorts World at Sentosa, Singapore’s integrated resort in Sentosa island. Genting is an integrated resorts development specialist with many years of international gaming expertise and global experience in developing, operating and/or marketing internationally acclaimed casinos and integrated resorts in different parts of the world, including Australia, the Americas, Malaysia, the Philippines and the United Kingdom (“UK”).

Genting International is a 54.8 percent-owned member company of Genting Berhad and was incorporated in 1984 to invest in leisure and gaming-related businesses outside Malaysia.

For four years from year 2002 to year 2006, the share price for Genting has been in a trading range between SGD0.20 to SGD0.35 (Adjusted price data). Price started to increase aggressively at the end of 2006 after winning the bid to develop Singapore integrated resorts. Price shot up to SGD1.00 in just one month (January). That’s a 285% increase in a month. It went to a low of SGD0.60 one month later (February) before ascending again to SGD1.00 in April. Today its share price closed at SGD0.595.

Technically, the trend is still bearish but has found strong support in the SGD0.570 area. The strong support is identified when the price action in the past few months created a pattern called the inverted head and shoulders pattern. It is a pattern that indicates price has may bottomed out.

The increasing Relative Strength Index (RSI) indicator also shows that the momentum is skewed upwards. These indicators show a good potential for price of Genting to rebound upwards.

The neckline of the inverted head and shoulders pattern is at SGD0.63. The reversal is confirmed when price breaks above SGD0.63. The share price may find some resistance here as a common reaction to the trend line resistance, but price may continue upwards if it is able to stay above SGD0.63. The potential target from this pattern is SGD0.72. Major support level remains at SGD0.57.

Daily Genting chart as at 29 May 2008, using NextVIEW Advisor

Article by Benny Lee