Reposted from Seeking Alpha
By Brian Langis
Editor’s notes: NagaCorp has a monopoly on the Cambodian gambling industry and is poised for continued growth. 20% upside as it continues to play a winning hand.
NagaCorp – The Action Is In This South-East Asia Casino
NagaCorp Ltd. (NagaWorld, Naga) (NGCRF.PK)
Note: NagaCorp’s primary ticker is 3918 on the Hong Kong Exchange, its principal trading venue, but Seeking Alpha does not permit linking to Hong Kong tickers.
Note: Dollar amounts are in US$ unless mentioned otherwise. USD-HKD 7.75 Price of 1 USD in HKD
NagaCorp runs a monopoly on gambling in Phnom Penh. Share of the casino operator has been on a bullish tear since its 2006 IPO and is up +81% year-to-date. In 2006, NagaCorp raised US$95 million with a Hong Kong stock offering at a price of HK$1.43 per share. Since then shareholders have been well rewarded; today shares of casino are trading ~HK$6.90, a whopping 383% not including dividends and special dividends.
The focus of this article is to determine if NagaCorp’s rally will continue. Is NagaCorp undervalued in relation to its intrinsic value? Rest the rest of the story here.