SKC - Sky City

[percy]

SKC Financial Result due in August so I just wanted to touch base on this stock. It is one of my key NZ core portfolio positions.

Fundamentally I like the story - good management good PE and yield monopoly casino etc with upside from
- Favorable regulatory changes
- Growth in Chinese tourism
- Growth in VIP market share
- Growth or takeover of Australian operations
- Takeover of NZ operations

Technically the stock has been in a nice uptrend since Sept-10 and you can draw a nice channel upwards - The SP has just jumped off the lower chnnel trendline in the last few days and seems headed for $3.90.

I'm looking for a continuation of the uptrend and a strong result and FY12 forecast driving the SP over $4.00

Broker coverage:

Mac Bank - $4.05
Goldmans - $4.00
Both Buy reccos

Aegis $3.80 Hold

Be great to hear more discussion on this stock

I hold,and down side is posible lack of return on major projects ie Auckland,Darwin,and Adelaide.Upside is these projects add to earnings.I like the stories ,and management.I think earnings may still be flat.I expect the WWC will be a good money spinner for SKC.Not expecting a lot in the short term.The major projects mean the company knows what and where they see growth.

[JemT]

SKC is a client of Goldman's. Personally I think that many of the above expectations are priced into the shares already, and I would say it is a good stock, but perhaps not a bargain at ~$3.80.

[macduffy]

From The Herald:

http://www.nzherald.co.nz/business/n...ectid=10740844

[winner69]

From The Herald:

http://www.nzherald.co.nz/business/n...ectid=10740844

Good eh ..... plenty of money to be made in the future

[percy]

From The Herald:

http://www.nzherald.co.nz/business/n...ectid=10740844

I don't think Mr.Clark will be using SKC car park again.
I must admit I find airport car parking too expensive too.I have found myself a nice free legal park a short walk from Christchurch terminals,and take great delight they don't get a penny from me.Trust Mr.Clark can do the same at SKC.Suburban malls with free car parking are the answer.
Customers usually end up having the last laugh.

[winner69]

I don't think Mr.Clark will be using SKC car park again.
I must admit I find airport car parking too expensive too.I have found myself a nice free legal park a short walk from Christchurch terminals,and take great delight they don't get a penny from me.Trust Mr.Clark can do the same at SKC.Suburban malls with free car parking are the answer.
Customers usually end up having the last laugh.

Probably only a matter of time before mall carparks are 'Pay and Display" as well

[percy]

Probably only a matter of time before mall carparks are 'Pay and Display" as well

Not with the competition from on line retailers.

[Snoopy]

SKC Financial Result due in August so I just wanted to touch base on this stock. It is one of my key NZ core portfolio positions.

Fundamentally I like the story - good management good PE and yield monopoly casino etc with upside from
- Favorable regulatory changes
- Growth in Chinese tourism
- Growth in VIP market share
- Growth or takeover of Australian operations
- Takeover of NZ operations

Technically the stock has been in a nice uptrend since Sept-10 and you can draw a nice channel upwards - The SP has just jumped off the lower chnnel trendline in the last few days and seems headed for $3.90.

I'm looking for a continuation of the uptrend and a strong result and FY12 forecast driving the SP over $4.00

Broker coverage:

Mac Bank - $4.05
Goldmans - $4.00
Both Buy reccos

Aegis $3.80 Hold

Be great to hear more discussion on this stock

modandm, you have just blown your cover. It can now be revealed that you are in reality Evan Davies the former SKC CEO. When Evan was in charge, any time SKC showed any weakness in share price, Evan wheeled himself out repeating his 'takeover target' mantra. However, history shows that Evan himself was taken out and fortunately SKC is still with us.

I think it a little sad that the whole SKC company is now regarded by any investor as little more than a casino chip in a game of corporate poker. Personally I would prefer to see SKC remain 'a player' in this market. I would rather hold SKC than any of the Australian market gambling shares. The expansion into Australia got off to a bad start in Adelaide. But I am fairly sure the Darwin acquisition will prove very shrewd. And even Adelaide may yet come right if SKC can work with local government and make the old Adelaide railway station area more of a destination, in accordance to the ambitious paper plans.

The uptrend you refer to is I think people focussing on RWC and the tourism spin offs. I think that profits will fall back post RWC, but maybe not for long. This company has more management momentum that the market gives it credit for, IMO. Perversely I believe SKC is losing VIP market share to new casinos in Macau. However the overall VIP market is so strong that even losing market share in the future will produce a growth in VIP gambling profits for SKC.

As to the question is $3.80 good value, perhaps not. Potential shareholders should have bought in the so called downtrend during the last capital raising at around $2.60, which gave a great dividend yield. That's what I did and this is the reason I am now sitting pretty on my SKC holding.

SNOOPY

[macduffy]

SKC NPAT up 21%

http://www.stuff.co.nz/business/indu...venue-rebounds

Those carparks must be full!

[troyvdh]

...a bit out of left field...and believe me I have no issue about folk making a dollar or two...but I have often wondered how clever/sophisticated one needs to be to take dosh from the most vulnerable in our society...I once drove around the casino...it looked like a barn/warehouse...what Ive heard that inside aint that pretty inside either......is it true that a few years back SKC actually won an award ...for "exceptional achievement".....it is/has been often stated that in hard times folk gamble...excuse me...I find that quite sad...sure being a nurse...this could be an expected response...what i find trully appawling is that these places actually employ folk to "hone in " on the most vulnerable aspects of human "psyche" of reward/gain....like flashing lights/attention/envy/naked greed...to extract the most dosh out of every person entering the premises....

...just curious...