Quite frankly, and as I pointed out on Friday, the whole NZX is on sale and while people are losing money people like me are contemplating buying rather than selling. On fundamentals alone there are many NZX stocks that are looking way more attractive than they had been just 3 trading days ago.
Lets look at some specific stocks though and in the first of a new series to coincide with the current stockmarket sales we will look at the biggest part of the Share Investor Portfolio, Sky City Entertainment Group Ltd [SKC.NZX]
The company has a consensus forecast of slightly below $128 million for full year 2011 which is out to the market on Tuesday 16 August. This is around the same as full year 2010. The 2012 full year is likely to be a record year though. This is primarily due to the Rugby World Cup, which will make its impact felt in the first half of 2012 and the capital expenditure on the Auckland Casino, which has seen more than a dozen new eateries bars and new gaming areas opened or about to open in time for RWC punters. There is of course no guarantee that these new capital expenditures will keep paying for themselves after RWC customers dwindle but there will be a big positive impact on the bottomline at the very least in the first half of 2012.
During the big sell-off over the last 3 trading days the fundamentals for this stock are of course looking much better.
Lets have a look:
| P/E | 19.880 |
|---|---|
| EPS | $0.169 |
| NTA | $0.630 |
| Gross Div Yield | 7.334% |
Over the last week the share price has dropped from $3.70c to finish trading today at $3.23, a drop of just under 13%. This is back down to levels not seen since March this year but well off the 52 week low of $2.83.
Given that the big global market sell-off probably has more legs in it, investors would be wise to be a little patient before they jump in.
If you were considering buying this stock before last weeks implosion, this week the Great Global Market Sell-Off (GGMSO) means you will be getting it on sale*.
*If you don't like some risk, stay at home and darn your socks instead.
Disc: I own SKC shares in the Share Investor Portfolio
Sky City Convention Centre @ Share Investor
VIDEO - Sky City Entertainment Group : Parliamentary Question related to Convention Centre
Sky City to pay for National Convention Centre
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
SKC Convention Centre power-point slide illustrations & SKC submission to Auckland City Council
Sky City Entertainment Group @ Share Investor
Share Investor's Total Returns: Sky City Entertainment Group Ltd
Sky City Entertainment Group Ltd: Presentation to Macquarie Group
Morningstar Revalues Sky City Entertainment Group
Guest Post - Michele Hewitson Interview: Nigel Morrison
Failed Sky City bid for Christchurch Casino good news for Shareholders
Sky City Entertainment Group Ltd: Christchurch Casino bid falls short of Investment Criteria
Sky City Entertainment Group Ltd: Never mind the width feel the volume
Sky City Annual Meeting & 2011 - 2012 Profit Forecast
Stock of the Week: Sky City Entertainment Group Ltd
Sky City set to lose National Convention Centre bid
Sky City Entertainment Group: Australian Acquisition on the Cards?
Sky City Entertainment Group Ltd: 2010 Full Year Profit Analysis
Sky City Entertainment Group 2010 Full Year Profit Preview
Chart of the Week: Sky City Entertainment Group Ltd
Share Investor discusses Convention Centre proposal with CEO Nigel Morrison
Share Investor Q & A: Sky City CEO, Nigel Morrison
Sky City Entertainment: CEO Nigel Morrison discusses 2010 HY
Sky City Convention Centre Expansion a Money Loser: Part Two
Sky City Convention Centre Expansion a Money loser
Sky City Entertainment Group Ltd: Download full Company analysis
Sky City 2010 full year profit looking good
Long Term View: Sky City Entertainment Group Ltd
Sky City Entertainment: CEO Nigel Morrison discusses 2010 Half Year
Sky City Entertainment Group 2010 Interim Profit Review
Sky City to focus on Gaming
Sky City debts levels now more manageable
Insider Trading on Sky City shares
Sky City Profit Upgrade: Always on the Cards
Sky City's Current Cinema "Boom" a Horror Story in Disguise
Stock of the Week: Sky City Entertainment Group
Are Insiders selling Sky City Stock?
Sky City Entertainment 2009 Interim Result Preamble
2008 Sky City profit analysis
Sky City share offer confusing and unfair for smaller shareholders
Sky City Entertainment 2008 Full Year profit results , NZX release, 2008 full year presentation, result briefing webcast, financial statements
Sky City 2008 profit preamble
Sky City outlines a clear future plan
As recession bites Sky City bites back
Sky City Assets: Buy, sell and hold
Why did you buy that stock? [Sky City Entertainment]
Sky City Share Volumes set tongues wagging
Sky City half year exceptional on cost cutting
NZX Press release: Sky City profit to HY end Dec 2007
Sky City Cinemas no Blockbuster
Sky City Entertainment share price drop
New Broom set to sweep
Sky City Management: Blind, deaf and numb
Sky City sale could be off
Opposition to takeover
Premium for control
Sky City receives takeover bid
Sky City Casino Full Year Profit to June 30 2007
Setting the record straight
Sky City CEO resigns
Sky City Casino: Under performing
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit
Discuss SKC @ Share Investor Forum
Download SKC Company Reports
Recommended Amazon Reading
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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