The Stock of the Day is Star Entertainment (SGR)

stock of the day look not a lot of news to go on quite frankly uh corporate wise today we've had a couple reporting but we thought we'd actually take a look at Star Entertainment has been obviously many difficulties facing the casino operator with the Queensland government extending its license suspension for its Gold Coast and Brisbane casinos until December and this is going to give Regulators more time to assess the results of the second Bell inquiry into operations of its Sydney Casino the broker considering it is suffering from many uncertainties which obviously investors don't like that includes uh problems with the cting license the ostra penalty and debt refinancing for uh its Brisbane project as well as management changes there is a lot to consider and look shares off just over 1 and a half% today Jonathan look at it It's Tricky um at the moment for well not just star we've seen this of course with crown um yeah given you know both our operations have been examined um heavily at the moment so how do you view star um so it's just a case of uh yeah the market is uncertain about star at moment so what's happened as I read the actual announcement is that they were going to make a decision about the suspension and they've delayed that to out to December so it just means that it's more um you know uh news that they're uncertain of if there's bad news if they you know suspend the license if they throw down a heavy fine Market can react to that because it's know known and then they can readjust in this case it's just another you know uh more delays and it just means that more uncertainty and uh investors don't like that well in fact I think you've actually brought some charts along today as well um so here is star so you're seeing here yeah so this is a A system that we use um at at NPC markets uh Kai's the Quant in the group uh basically he's back tested a lot of indicators but uh just from that uh you know the indicators pretty much tell you it's it's going down so so there's not there's there's no magic in the chart that tells you that uh you'd want to buy it anywhere with this uh you know delay in the decision uh you know why would you deploy Capital there all right so but if you're in it would you keep holding or would you sell oh that's a that's a good one um I think there's better opportunities elsewhere I mean like we we're talking 6 months of indecision we don't know what's going to happen with this uh Bell inquiry so I would I would sell it there you go Jun look it is uh this is a one for the Deep value um I think if you take a 12-month view share price would definitely be higher uh but next six month a little bit uncertainty um I would put this on the speculative buy um you know I think the company self is um you know has everything that can go wrong has gone wrong and they got two inquiries um one has gone through and they we still waiting for the uh the fine that is to be handed down uh the expectation is well expectation is uh from what we have seen with crown and with uh uh star uh the Sky City um sort of Vine so we think the um you know the the amount uh will be will be okay um you know when compared to expectations um and I think that should see share price actually rally on the back of that and that is probably coming sometime soon but the next review of course is going to take longer um and of course the license review and the like is just putting a bit more pressure on the near-term earnings um the business itself the main gaming floor is actually doing quite well um and we actually seeing growth finally in the main gaming floor um and that's positive for this company um and I do think you know in six month that you you right now you're going through the trough of the earning and then in six month you should see um you know pretty meaningful turnaround in terms of earnings as well as um the launch of the The Queen's wolf where how much you know how much that Queens wolf that can sell and the like um and right now it's pretty much valued at you know pretty much zero within the business and remember a lot of debt is actually sitting in Queens wolf not inside the the actual corporate business so um I'll put on a speculative buy um it is speculative um and then your investment Horizon is uh is probably about 12 months all right well there you go Jonathan you can sell it you can do your spy Buy