future sp directions, page-13

perpetual are increasing their holding.
i said on hot copper recently that i thought sgr was a little overvalued when it was 6.00, but now i see the current negative sentiment as a great contrarian buying opportunity as most analysts i have read suggest that the effect on revenues and earnings medium term will be minimal.
a drop to 5.00 was an irrestistable buying opportunity for me.
i agree with major shorting at present that it may go lower as far as 4.50 in the short term, but this is just shorters making money on a wave of sentiment and self fulfilling fear selling.
im quite sure it will bounce back up to 5.50 in next few months once this vip story has disappeared and earning are proven stable and wider market jitters have passed.
the cwn vs sgr war and mirage development is a long term issue that wont really affect earnings in the next coue of years, so we will have to assess it as more details emerge over coming years. i think the fundamentals stack up in terms of profitability but ut deoends whether star or crown creates a superior product or can provide complementary products. the mirage had a strong history of profitability in its prime and it is a blue chip property location. i agree that the risk is over capitalising however im sure the board will weigh up the risk reward of higher vs lower spending on the redevlopment.
im more focussed on short term earnings over the next 1-2 yrs and the other developments at jupiters/ brisbane