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.
6/26/2008
For envy, do you know there is a ratio?
Sometimes, I wonder the people are so good at picking names or phrases to catch your eyes or attention. You must be of interest to know what is an envy ratio if you come across this term.
This ratio is used in the private equity acquisition.It is calculated between the price paid by the management team and that paid by the investing institution (usually private equity) for their respective share of the equity in a management buyout/in.
For example if a private equity firm paid $30m for 75% of a company's equity and management paid $5m for 25%, then the Envy Ratio would be 2x.
30/75 / 5/25 = 2x
So, the higher the ratio, the more envy will be.
It has been used in London, but it now seems to be catching on in Asia. Anyway, it is a term worth to remember. It is not surprise if to hear happy ratio, sad ratio or even hungry ratio in the future.
This ratio is used in the private equity acquisition.It is calculated between the price paid by the management team and that paid by the investing institution (usually private equity) for their respective share of the equity in a management buyout/in.
For example if a private equity firm paid $30m for 75% of a company's equity and management paid $5m for 25%, then the Envy Ratio would be 2x.
30/75 / 5/25 = 2x
So, the higher the ratio, the more envy will be.
It has been used in London, but it now seems to be catching on in Asia. Anyway, it is a term worth to remember. It is not surprise if to hear happy ratio, sad ratio or even hungry ratio in the future.
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