This article is authored by MOI Global instructor Brian Grosso, portfolio manager at JBF Capital. Brian will present a new idea (not the idea below) at Best Ideas 2019.

I wrote the thesis below last month. My views on Emperor Entertainment Hotel (HK: 296) remain the same, my position has not changed, and the stock is still available at a cheap price.

I believe Emperor Entertainment Hotel stock is a weighted coin. The stock is extremely cheap — if the assets were sold tomorrow I estimate the proceeds would be four times the recent stock price.

The main reason the stock is discounted is concerns about governance, but if we focus on how insiders have actually behaved, they’ve treated investors well.

That discount has been compounded recently by the bear market in China and Hong Kong, and Macau gaming stocks have declined more than the indices.

Even if Macau gaming activity declines and Emperor’s assets underperform, unless insiders behave unfairly, it’s hard to find downside in the stock and the upside is multiples of the current price.

Members, log in below to access the restricted content.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

The content of this website is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, principals and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated on this website.