by winston » Fri Oct 28, 2011 11:12 am
Not vested. How can the "expert" analysts be so wrong ?
DJ MARKET TALK: Daiwa Downgrades China LotSynergy To Underperform
1052 [Dow Jones] STOCK CALL: Daiwa downgrades China LotSynergy (8161.HK) to Underperform from Buy as it expects slower sales growth for the company's video lottery terminal business.
"Despite the recent launch of the next-generation VLT terminals, we believe visibility on CLS's major expansion plan for its new VLT terminals is too low at present."
It cuts its 2011-12 VLT sales forecasts by 9% and 29% respectively.
It lowers its target price to HK$0.10 from HK$0.42, now based on 6X 2012E PER to reflect slower earnings growth and the stock's low liquidity, after cutting 2011-12 EPS forecasts by 52% and 58% respectively on lower VLT revenue and higher operating expenses for the new businesses.
"We see limited potential positive catalysts, and think the stock is likely to underperform the market in the foreseeable future."
But it adds, upside potential could come from faster-than-expected deployment of next-generation VLTs, although it notes ARPU faces limited upside without new VLT games.
Source: Dow Jones Newswire
It's all about "how much you made when you were right" & "how little you lost when you were wrong"