Will Genting Sell Asiatic?

Genting is a cash cow by all measure. However, with the new Sentosa Island project and the operations in the UK, can it raise capital through normal organic growth?

Resorts World has sold some notes on the market to raise capital which is a very strange thing to do for another cash cow? Then , what about the albatross around it's neck-The Floating Flotilla of Doom call the Star Cruises? Dump it and raise cash for the new projects?

My belief is Asiatic will the last card they will play in this game and so I think they would not sell Asiatic to IOI in spite of the market rumours which have push both Genting and Asiatic shares up today.

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Bursa Lethargy

After a few lacklustre days of see-sawing action, Bursa has now gone into a stupor.

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Bursar Dullsville

After making history yesterday, the index went up about 9 points at about 11.00 am today. Maxis, to be taken private, took the lead, chalking beyond more than RM2.00 gain. Other than that, most blue chips were quiet. Gentings went down 15 sen. What is the reason? RCE was stalemated to a downward bias and KPS was going south with little volume. Resorts was two cents off but Berjaya Sports Toto added 2 sen.

I think today being a Friday is dullsville at the Bursa.

P.S. I was proven wrong once more.

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Is KPS due for another re-rating?

The water rates issue have just been agreed between the Pahang and Selangor governments. Selangor will now pay an additional 5 sen per litre of raw untreated water to Pahang in this water transfer project.

Now that the main bugbear affecting the project has been permanently removed, what next? Will the earlier agreement between Kumpulan Darul Ehsan Berhad (KDEB) and KPS be enforced? This is now quite unlikely because water is now on the concurrent list of the Federal Constitution and the Federal government might be involved in some parcels of its development.

What I can foresee now is that the agreement between KDEB and KPS will be reviewed in the light of these new developments. I believe KPS will still get the lion share of the development and maintenance of this project. If the rumour on the takeover of Puncak Niaga comes true, it will certainly put KPS as the new kid of the block and head honcho of waterworks in Malaysia.

So do you think KPS is going to be re-rated by the market on Thursday when market reopens? Your guess is as good as mine.

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