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Thursday, March 26, 2009

Resorts World (RESORTS (4715)) - Is it a deal?

Based on today sudden soar of it share price to RM2.19 (up 6.83%) as of 3/26/09, let look at some fundamental facts.

According to 2008 Q4 earning, it stated a loss of RM387.942 mil (EPS: -RM6.75). While the net asset value per share is RM1.45.

It might indicate the Q1 earning will be positive...will find out on next month. From privatization a public company perspective at current share price of RM2.19, it is about paying 50% additional premium to buy it (2.19/1.45)

Thus, it is depending how much premium you are willing to pay. Good luck!

Here is the deal:
My target purchase price for this stock is anything below RM2.00, where PE < 18 and Premium Ratio < 1.38.

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