Sectors: Casino
SGR fell 6.7% on Wednesday, adding to its woes of recent years. Incredibly, SGR now only has a market cap of $600mn as it increasingly appears like a “penny dreadful.”
ALL +2.6%: Was down early before recovering to finish the day higher following the release of their FY24 results that were largely inline with expectations, underpinned by good US earnings which offset a softer performance in other regions.
Hi MM team,
Hey Guys,
Hi Team, What do you see as the end game for The Star? Your general advice on the investment potential of CHN, GOZ & PRU, please.
Hi Team,
Is buying SGR below $1.00 akin to catching a falling knife? If so, at what price are the risks fully priced?
SGR rallied +2.6% yesterday albeit off an extremely low base, we’re sticking with what we said last week – “We have no interest in picking the bottom in SGR but our best guess is it rotates between 90c and $1.20 through the 2H i.e. an alternative to the Melbourne Cup!”
1. MFG: Given today’s FUM update and your comments in today’s afternoon report, including about the update not meeting your expectations on FUM/performance fees:
SGR has already fallen -51% this financial year in a much-publicised rout with the casino operator facing huge fines for a plethora of transgressions. The company downgraded earnings by around 15% in April, blaming regulatory restrictions and a deteriorating consumer environment while at the same time announcing further cost-cutting measures.
