Should we switch some of our property focus into the share market instead? These few weeks has been good for the stock market. Recently, I bought 2,000 units of Genting Malaysia stock. (Stock code: GenM). Of course, since it is only 2,000 units, no matter how much the business of Genting Malaysia grows, I would not become an overnight millionaire. However, if their business does well, I think the stock price should appreciate enough so that I can sell and be able to treat my family a nice dinner and perhaps make another trip to Genting Highlands for a brief break. I bought at very slightly above RM4. It has not moved much since the day I bought and I have nearly forgotten about it. Worst case scenario? It is ok, I get dividends which I think is higher than the typical savings account rate.
What’s the reason for this buy? Well, in my last trip just two weeks ago to watch the “Ultraman” show, I saw the construction of the new 20th Century FOX theme park. It’s definitely ongoing. This is reason number one. Reason number two is because despite it not being a long school holiday, it was ‘human mountain human sea’ in Genting Highlands. Do note that the current theme park is already closed. Thus, I made a conclusion that the new theme park is likely to boost the number of visitors significantly. Third reason is because many other analysts seem to agree that GenM is a good counter to buy. Just google for ‘GenM target price’ and you would know what I mean. Do note that these analysts are still just analysts. Please buy based on your own analysis instead.
Since there are three very good reasons, then why did I buy just 2,000 units?The reason is because before the new Fox theme park is opened, Genting Malaysia would have to continue paying for its construction. It would also need to spend on marketing activities. It would also need to ensure the staffs are hired, trained and paid for many months before the actual opening of this FOX theme park. In other words, money should be flowing out first, before the investment can start to earn profits. Also, please remember that Genting Highlands major profits would still come from casino operations and not from this FOX theme park. Thus, I am buying with the aim of a great dinner, some profits as well as a vacation. In this case, there is really no need to buy more units. Even if the stock can appreciate 30% suddenly, I would already achieve my objective. Have a happy vacation there.
written on 21 Mar 2015
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