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November 25, 2004

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Buyers and sellers

Hong Kong's stock market is in the midsts of another frenzy: each day another company announces the magic word and its share price rockets. The word? Macau. It has the only legal casinos in all of China which have been recently opened to competition. Suddenly the stock market has realised 1 billion gambling mad Chinese have only one place to lose their hard earned money. For example yesterday Cyber On-Air Group announced it was paying HK$1.2 billion for the hotel and casino operations in Macau of its parent Chow Tai Fook. Its share price rose 541 percent, from under $2 to $12 a share. Another example is Stanley Ho's plans to sell some of his personal casino interests to Melco. That and a gaming joint venture with Australia's PBL saw the share price rise from just over $2 in September to $10 now before they were suspended.

I have one question for all those eager buyers of these shares. Why do you think Stanley Ho and Cheng Yu-tang's Chow Tai Fook are selling?

 posted by Simon on 11.25.04 at 10:17 AM in the




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Stock gravity
Excerpt: I've already asked all those investors in Macau stocks one question. Now I have another. What if...?...
Weblog: Simon World
Tracked: December 6, 2004 03:04 PM


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