GENTING SINGAPORE LIMITED (SGX:G13) Share prices and outlook?

Hi Anon! I will just leave a few thoughts about this stock down here. They are quite preliminary and I'm not familair with this industry at all. I will just share some thoughts from the news reports that I have read.

Negative Market Sentiments

The hike in tax for Singaporeans seem a lot higher than before at a 50% increase. But I don't think this should cause too much harm for short-term earnings since most of revenue I believe comes from tourists and not Singaporeans. In any case, for serious gamblers who are hooked, the hike in tax may not cause too much of a detterance.

Risks

Even with much larger expansion, I would not completely equate that to higher growth in the future. There is still the risk that the gaming and tourism market may not latch on to such growth, since these expansionary plans have a significant outlay and are very major. I read that some analysts say that for this to be a positive move, growth after the opening of these new facilities needs to be very strong.

Long Gestation Period

As what you mentioned in the question, this is a long term prospect. In terms of intrinsic valuation, the longer gestation period means that the increase in free cashflow from such a move would be discounted at a higher rate. Additionally, the large capital expenditures in the near term would cause free cashflows in the short term to be reduced. These 2 effects might cause some investors to price the shares lower, depending on how you assume the growth of these facilities will bring in the future.