Opinion on Nagacorp Investments

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Opinion on Nagacorp Investments

Post by CEOCambodiaNews » Sun May 03, 2020 10:12 am

Opinion piece

Sell Nagacorp now
BY Rafi Farber ON April 28, 2020

Nagacorp right now is one of the more dangerous casino stocks in the world to invest in. It’s especially dangerous as opposed to others because the company is specifically very confident it will sail through the current COVID-19 depression that it is throwing caution to the wind.

The last time we covered this stock here was in October 2015. Since then, and despite a 36% fall from pre-COVID-19 highs, the stock is up an amazing 70%. If you have any profits, I’d suggest locking them in now. I have always been wary of Nagacorp and companies with similar business models. In my last coverage I was cautiously optimistic and said that investors considering investing in this casino should do so only as an income investment with a time horizon of 2020. Well, 2020 is here, the gains are huge, and now it’s time to move on. I am no longer cautiously optimistic here.

This is a company that has the potential to fall quickly. I do not know if it will for sure, but the risk is too big and I don’t trust the optimism in its recent press releases that essentially say that everything will be just fine.

Nagacorp is very reliant on its government monopoly, so much so that management believes COVID-19 will do very little to harm operations even short term. Nagacorp believes it can be as spendthrift as it wants to be because the thinking at the highest levels is that no matter what it does and no matter what happens, it can rely on its monopoly to bail it out of any trouble. This can make its business decisions especially careless when real problems do show up.

Cambodia’s reports on infection rates in the country are one thing. Officially, there are only 122 total cases in the country that sees most of its tourism from China, and zero deaths. A single report that one person who worked in Nagaworld was infected, met with such fierce opposition from the company that the phrase “Thou doth protest too much” comes to mind. Apparently the worker was named and Nagacorp denied that any such person even worked at the casino. Other companies would have either stayed silent or said something neutral like “Nagacorp continues to stay vigilant and values the health of its staff,” or something along those lines.
Full article: https://calvinayre.com/2020/04/28/casin ... acorp-now/
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Singsling
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Re: Opinion on Nagacorp Investments

Post by Singsling » Sun May 03, 2020 12:30 pm

The most relevant point in the article is the mention of a likely run on the US dollar.

I wouldn't be holding assets in USD right now, as printing trillions of $ to sustain the US stock market is a proven recipe for disaster. Think Venezuela or Zimbabwe.

China, Russia and other states are turning away from the USD as a reserve currency and slowly ditching their USD bonds. The long term implications are staggering and the current crisis will exacerbate the trend.

I've been switching my assets to €, yen and residential real estate in southern Europe. Plus a chunk in CHF obviously.
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