beforencpg

Most of us have seen the initial advertisement by the National Council on Problem Gambling (NCPG) on Andy’s dad. The NCPG was in for a pickle after the Germans dispatched Brazil en route to being World Cup champions. No wonder Andy was smirking in the advertisement LOL.

If NCPG’s purpose was to spread awareness , I would give them full marks with the advertisement going viral. Even parodies involving Chow Yun-fat as the ‘God of Gambler’ spread like wildfire over the net!

What does greed have to do with investing?

One more time

I have to give props to NCPG for coming up with a decent comeback within such a short period!

No, dad never stops…he wants to bet one more time” tells us a lot about the allure of fast cash. Our articleInvesting through the speculation of other” touched on how to benefit off the greed of others, like Andy’s dad.

We mentioned casino operators like Genting Singapore PLC’s (SGX: G13) as one possible angle to explore. Another related industry would be the pawnbroker industry in Singapore, with their growth said to be linked with the opening Singapore’s 2 casinos.

What about pure-play lottery players?

Singapore Pools (Private) Limited would be THE pure-play lottery player in Singapore. But they aren’t publicly listed. Singapore Pools is a wholly-owned subsidiary of the Tote Board, the only operator legally allowed to run lotteries in Singapore. What a great monopoly based on greed right there!

If we were looking to be public investors of such businesses, we could look towards Malaysian companies like:

1)    Berjaya Sports Toto Bhd (BST:MK): Berjaya’s Malaysia operations offered games like Toto 4D and Toto 4D jackpot. Since they were privatized in 1985, revenue has increased from RM78mil to RM3.6bil in 2013! They also have gaming management operations in both Philippines and USA.

2)    Magnum Bhd (MAG:MK): Magnum (Formerly Multi-Purpose Holdings Bhd) is focused on the gaming or numbers forecasting lottery business.

Value In Action

We may not be as lucky as Andy’s dad 10 out of 10 times. That is why at Value Invest Asia, we always strive for investment and not speculation. Instead of succumbing to greed, we could explore ways to turn our weakness into strength.

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All views and opinions articulated in the article were expressed in Mun Hong’s personal capacity and do not in any way represent those of his employer and other related entities. Mun Hong do not own any shares in the companies mentioned above.

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