They were not buying in Q4 because of the listing application, which was rejected. You must have missed that. Earnings are going to better than estimates but with VIP in the tank what matters is whether they begin to buy shares again.
saying you are as dumb as a post is an insult to posts. No need to respond, you are back on ignore.
Instead of having to pay the 26 million from the 6.5 million of net income they have made so far they get to keep it. That will leave them more cash to operate a bigger, better room if they get offered to run one when the expansion comes in the second half of the year. They could even pay out a special dividend beyond the normal one if they wanted to. Personally I would like them to put themselves up for sale. The company is worth $6 a share at a minimum.
If the rct run rate drops to one billion a month I do not see any way those newly acquired rooms are going to meet the payout target. So they save $26M plus get a big bump up in GAAP earnings when the contingent value of the rooms goes down.
What the heck? Big block buys in the first 1/2 hour and then volume virtually stops. If the company isn't buying someone is buying ahead of them figuring it is just a matter of time before they do.
But the contigent consideration adjustments have to do with the theoretical value of the purchased rooms. So those adjustments don't effect anything to do with cash, it's an accounting thing. But if you are saying the rooms are not going to meet the roll requirements set up in the purchase contracts that will save the company a huge amount of cash. Just don't bet on it happening because the old room owners still have some degree of control over what happens in those rooms. So they will do everything possible to ensure they get paid.
How do you figure out the cut off point between where buying back stock makes sense or where it makes more sense to leave cash in the cage?
You need to think about more in the line of how much they are worth as a dividend and IDR stream coming back to SUNE from TERP once the project is dropped down to TERP. That is where the value of the model lies, recurring streams of cash.
These guys must have some really bad karma. They would have been listed a year ago if the sponsor didn't die. To be honest it really doesn't matter as seen by the market's lack of reaction.
They are not a junket company. They plan on developing a junket business because the guy who bought Sinogreen has been a junket company investor.
"Sinogreen to develop junket business in Macau
Nov 24, 2014 Newsdesk Latest news, Macau
Sinogreen to develop junket business in Macau
Sinogreen Energy International Group Ltd, a Hong Kong-listed firm controlled since September by Macau junket investor Jack Lam Yin Lok, said in a new filing it plans to use money raised in a corporate funding exercise to develop a junket business in Macau.
Friday’s filing said Sinogreen would use Mr Lam’s “expertise and experience” in order to “explore the opportunity of developing the gaming promotion business in Macau”. Mr Lam is chairman of Jimei Group Ltd, one of Macau’s largest consolidators of gaming promoters.
Currently Jimei runs Jimei Casino next door to the Grand Lapa hotel on Macau peninsula under an SJM Holdings Ltd gaming licence. Jimei also has junket rooms in seven other Macau properties including Wynn Macau, Sands Macao and City of Dreams, according to Jimei’s website. Jimei also operates Fontana Leisure Parks & Casino at Clark Special Economic Zone in the Philippines."
I have never seen that done, converting RCT to a normalized number that is. Thanks for the explanation. In practical terms it means their run rate is a little higher than I thought.
That sounds right. It isn't rocket science that fewer rooms means an increase in share of the clients still going to Macau even though everyone knows there are fewer clients. Junkets leaving also means less competition for the new rooms opening. I read where Galaxy II is opening in May and Iao Kun has always had a great working relationship with them.
Wow, a civil discussion of the facts. That's great. I am no account either but be careful about the assumptions you are making. Last year net income was 31m. I am not sure exactly how much went out the door for the acquisition payments but it was close to being the same amount they made. This year they paid out around 3m more than they made. I don't understand anything about tangible book value but the real cash deficit between acquisition payments and profit from the business was probably less than 10m. there were other expenses like the ones for the new listing but they are temporary. Cage capital or cash owned by IKGH is still more than 200m.
I wish they would just make an announcement they have withdrawn their application to list in HK so they can get back to buying stock and raise the price to $3.
If they get the HK listing they should definitely de-list in the US since they get nothing from being on the nasdaq.
I would rather see them take the dividend money and buy back stock. After those middle quarters I never would have believed they would make 23 million from operations this year. They have to be in really good financial shape compared to most small and mid-sized junkets.