+ Watch AERL
on My Watchlist
risky but interesting
Dividend and dual listing in Hong Kong will lead to more investor's appetite.
profitable company. the gurus have been bad mouthing this stock so badly that it has PE multiple of under 3! OMG! earnings just came out and they delivered again, and they pay dividends of about 5%. great stock! buy. buy. buy
This company has contracts with 3 large Macau casinos, has generated consistent growing earnings for 2 years, has paid dividends and anounced higher dividends for the upcoming year, and announces revenue monthly. It's current years earning is $2.00 with a price of under $6.00. For more info check the following link http://ir.aerlf.com/analystreports.cfm
AERL is a Bermuda triangle of issues that will likely end up in a delisting - 1.) it is a foreign-filer, 2.) it has material weaknesses in internal control over financial reporting, 3.) it really is a shell company with no assets and a very, very complex ownership structure that results in no protection for U.S. investors, 4.) it has absolutely no operations only profit sharing agreements on companies owned by Macau nationals that are also management, 5.) these profit share agreements are only enforceable in New York per agreements, Macau residents will ignore, 6.) cash stays in Macau-based companies which AERL has no interest in, 7.) AERL relies on arcane accounting to enable it to consolidate the results of companies it has no equity interest in, 8.) it is closely-held, 9.) formed out of a SPAC shell, 10.) etc., etc., etc.
I am very BULLISH on this stock base on my analysis:1. Share buyback program: The company is buying back 2 million shares. There are only 9 million shares trading on public float. 2. Good future earnings: for AERL, the expected 2011 net income guidance range to be raised towards when Q2 results are released in the coming early August. All analysts are expecting good results so stay tuned for that. 3. You get a decent 4% dividend yield while you wait and that’s very attractive to me. Very strong cash position and awesome fundamentals. It’s sooooo freakin’ cheap compare to MPEL, LVS, WYNN, or even MGM. Even if AERL reaches $12 per share it is still trading below 50% discount to its peers at 6x EBITA. That’s the reason I didn’t suggest you to keep chasing MPEL because now it’s trading at around $13 and EBITA is around 15x. If you compare to its peers, the fair value of AERL is around $20. And at a technical standpoint, if you look at the chart, it has bottomed out at $5.5 and is currently at an uptrend movement with nice volume to support it. For protection I’ve put a stop loss at around $7 with a target selling price of $13, then I will sell 50% and have the rest to sit until it reaches around $20.This stock is an ultra strong buy as the casino revenue in Macau has already outperform Las Vegas, and it will continue to increase at a healthy rate.
This is a tracking portfolio of all CAPS-ratable tickers in the Chinese RTO/SPAC space (i.e., companies that listed without filing an IPO).Asia Entertainment & Resources Ltd. went public via a blank check (SPAC) merger in 2009. The company is based in Hong Kong.
Gaming stocks do very well when an economy is good, and the Asian -China economy is currently one of the hottest. Its news is good - no debt, low p/e,and d eps.
macau revenue will continue to increase at a healthy rate.
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