Market talk suggests that Genting has received casino license

While STI drops nearly 2% and everywhere in the world in deep red, Genting, be the top volume today, gaining 5% with highest 1.18. Market suggests that Genting may have received the casino license.

Despite Resorts World Sentosa’s (RWS) remarkable state of readiness, retail investors may “sell on news” as Genting Singapore’s (GENS) 1H10 earnings momentum may not be impressive enough amid an expanding share base on the back of bond conversion. Switch to Genting.

Available hotel rooms (about 600 of 1,350 units when fully opened by 1Q10) are booked solid through March (50:50 between local and foreign guests), and RWS could host up to 60 convention activities in 1H10.

We foresee a lull period for the shares without new near-term catalysts, and expect retail investors to accumulate only when RWS’ earnings momentum picks up significantly in 2H10.