Sociedade de Jogos de Macau (SJM) is about to launch the third largest IPO so far this year in Hong Kong. It is not a name known by all, but for Stanely Ho, the owner of SJM, is certainly recognized by most of our Hong Kong people. Also, its 19 out of 29 total casinos in Macau and their 1,100 mass market gaming tables and 3,700 slot machines are certainly places that we left some money before leaving this little enclave.
For this overdue IPO, I do not try to restate the facts in the prospectus but do want to highlight the price range values the company at 10.1 to 13.4 times its predicted 2008earnings, which is much cheaper than its major competitors. US-listed Las Vegas Sands is currently trading at 82 times 2008 estimates, and MGM and Wynn are trading at 22 times and 29 times respectively.
I am not asking my readers to risk their money in this stock or saying it is a sure win on the first day of debut but to advise those if to plan for a trip to Macau and try their lucks, why not use the stakes to apply for this IPO. I am always of opinion if to gamble why not to invest, particularly when the counterparty is the same.
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