Genting Singapore (SGX: G13) results are due in a few weeks. There’s a run up in G13 shares before that. The basis of this is that the shares of a major rival, Marina Bay Sands, have been doing well as their recent results show: “GENTING Singapore is expected to echo its peer Marina Bay Sands’ (MBS) strong performance reported this week, ahead of the mainboard-listed integrated resort operator’s release of its own third-quarter financials in mid-November. In separate reports on Thursday (Oct 19), CGS-CIMB and Nomura Global Markets Research underscored Genting Singapore as an undervalued stock at its current levels as they expressed optimism for its upcoming Q3 FY2023 results.”
Well, that could happen. There’s always the problem that rivals might be stealing business from each other - therefore one doing well means the other doing badly. But as we’ve said before about Genting Sing: “As background Genting operates resorts and casinos in many locations. The big issue though is the one in Singapore itself, on Sentosa island. This is obviously a business which suffered badly from all of the covid related lockdowns. No international travel, little leisure travel of any kind and, of course, the economic dislocation of the process itself. The big question in investors' minds has been how and when will that business return? Indeed, will it return at all? Maybe we've all got out of the habit, maybe we're all desperate to get back out there? The same sort of question has been affecting the leisure airlines in Europe.” Since then the evidence seems to be that yes, the business is returning. But, obviously, will it continue to do so?
That’s to think of this in sectoral terms - where the MBS results do have a positive influence - rather than competitive terms where the message would be the other way around.
Genting Singapore share price from Google Finance
We would apply a little bit of caution though. From past experience there can be an excess of hope in the run up to results here. Which means we’re in buy the rumour and sell the fact territory. Well, maybe we are with Genting Singapore: “Genting Singapore (SGX: GENS) shares actually fell 7% today on their profits report. Which is a bit of a surprise as quarterly profits actually tripled - yes, up by three times. The travel recovery is happening, people are visiting the resort and casinos, things are going great. But less great than the general audience out here thought they were going to go, therefore the share price fall. Expectations were running ahead of reality that is.”
No, history doesn’t repeat but it does echo. So we might well see the major prie action before the results, not at or after them.