Genting Singapore (SGX: G13) (OTCPK: GIGNY) shares did well on the back of their recent results announcement. There was always likely to be a revaluation as we digested the results - whether the casino and travel business was back after lockdown or not and all that - but the big question with such things is, well, how long with that last? Or, to put the same thing another way, what is going to be the new and perhaps stable value after the revaluation?
It's too early to be entirely certain, of course it is, and share prices never are entirely stable. There's always one dang thing after another which comes along to change those prices. But even so, if we're awaiting a piece of news which we think is going to be price changing, it arrives, then we've got to make at least some attempt at deciding when that piece of news is done. It was going to have an effect, here it is and the effect is happening, now, when is that effect fully in prices and we've got to wait for the next piece of news? A useful assumption about Genting Singapore - not a certainty, just useful - is that those recent results have now had their effect.
Genting Singapore share price from SGX
As we can see, the price was rising in anticipation of the news two weeks back. Then rose again strongly - for a corporate of this size that is a significant price increase - then the results were announced. And now we seem to be flatlining at this new and higher level.
This is coming dangerously close to determining prices though charting - the idea that share price graphs make shapes that can be divined - but it's really closer to a momentum trade. The secret of momentum trades always being that yes, the price is changing just because there's action in as stock like Genting. But the reason for the acton is what matters, for when that reason is done then so will the action be over.
The implication of this is really a matter for what we think we want to do on a stock market. If we're investing then that's one set of time horizons. If we're trading then that's different. Traders want to know what stock is going to move today, or at least this week. We would never be categorical about such things because there are always those other dang things that turn up. But here we'd say that it's likely that the price action in Genting Singapore stemming from the recent results is now incorporated into this new and higher price level.