Worse than I thought:

SAN FRANCISCO (MarketWatch) -- Crude futures reached a record high of $135.49 a barrel Friday in electronic trading on Globex and the July contract was last up $7.59, or 5.9%, at $135.35. The contract gained $7.21 to $135 on the New York Mercantile Exchange. Prices found support from a steep drop in the U.S. dollar, risk of an attack by Israel on Iran and a prediction from Morgan Stanley that crude prices will reach $150 by July 4. Stocks slump as crude futures close at record high.Dow Jones Industrial Average loses nearly 400 points in 8th-worst such drop- By Kate Gibson, MarketWatch

Last update: 4:52 p.m. EDT June 6, 2008

By Umesh Desai: HONG KONG, June 6 (Reuters) - Malaysian casino operator Genting Bhd's bonds have performed poorly and are at risk of being downgraded, analysts say, as soaring costs and delays at its multi-billion dollar Singapore casino threaten its fortunes. Genting has reassured investors that building costs are under control but analysts are also worried the cash-rich company could acquire new companies and enlarge gaming stakes in the United States and Britain, further straining its finances. A unit of the company is building a casino on Singapore's resort island of Sentosa and costs have escalated by 15 percent to around S$6 billion ($4.4 billion), due mainly to higher building expenses amid a booming construction sector."The Singapore capex overhang may continue to cause the cash bonds to underperform despite overall stable credit quality expected," said Brayan Lai, credit analyst with Calyon Corporate & Investment Bank.Analysts say there could be further cost increases and a possible delay beyond its original schedule in 2010. "There is a big question mark about the casino, whether it is economically viable. There is execution risk in the Sentosa project," said Warut Promboon, credit analyst with ING.Last month, Genting's chairman and chief executive Lim Kok Thay, said the project's costs and schedule were under control.Although the comments boosted the shares of its Singapore-listed Genting International to a 5-month high, Genting Bhd's bonds remain under a cloud.

ACQUISITION WORRIES:The Singapore project overhang is not the only worry for Genting, analysts say,Lehman's Agarwal says the company could make a bid for British bingo and casino company Rank Group. Genting is Rank's biggest shareholder, owning 11 percent of its equity."If they fund it with cash and debt, without any equity, it would be a big acquisition and in a market which is not doing well right now," he said.Last week, Genting reported a 33 percent fall in first-quarter net profit, due mainly to lower earnings from its UK casino business, as the British economy slowed.Meanwhile, there are also concerns the finances of the company could come under additional strain if it were to spread its operations to a mature gambling market such as Las Vegas. Genting's head of strategic investments, Justin Leong, told Forbes magazine that his company could set up business in the United States. He said Genting could build a new casino or take over a listed casino company, as stock prices are expected to turn even more attractive in the next 6-18 months.Credit analysts say investors should buy protection on Genting's debt via its credit default swaps (CDS), insurance-like contracts that protect against defaults, which had outperformed its bonds."We recommend buying protection on Genting. The funding can come from selling protection on IOI or the high grade index," said Lehman's Agarwal.

Looks like Monday red, red as DJ down 250 pts & oil up 5 USD. Time to collect if below 58 cts

 

By Umesh Desai: HONG KONG, June 6 (Reuters) - Malaysian casino operator Genting Bhd's bonds have performed poorly and are at risk of being downgraded, analysts say, as soaring costs and delays at its multi-billion dollar Singapore casino threaten its fortunes. Genting has reassured investors that building costs are under control but analysts are also worried the cash-rich company could acquire new companies and enlarge gaming stakes in the United States and Britain, further straining its finances. A unit of the company is building a casino on Singapore's resort island of Sentosa and costs have escalated by 15 percent to around S$6 billion ($4.4 billion), due mainly to higher building expenses amid a booming construction sector."The Singapore capex overhang may continue to cause the cash bonds to underperform despite overall stable credit quality expected," said Brayan Lai, credit analyst with Calyon Corporate & Investment Bank.Analysts say there could be further cost increases and a possible delay beyond its original schedule in 2010. "There is a big question mark about the casino, whether it is economically viable. There is execution risk in the Sentosa project," said Warut Promboon, credit analyst with ING.Last month, Genting's chairman and chief executive Lim Kok Thay, said the project's costs and schedule were under control.Although the comments boosted the shares of its Singapore-listed Genting International to a 5-month high, Genting Bhd's bonds remain under a cloud.

ACQUISITION WORRIES:The Singapore project overhang is not the only worry for Genting, analysts say,Lehman's Agarwal says the company could make a bid for British bingo and casino company Rank Group. Genting is Rank's biggest shareholder, owning 11 percent of its equity."If they fund it with cash and debt, without any equity, it would be a big acquisition and in a market which is not doing well right now," he said.Last week, Genting reported a 33 percent fall in first-quarter net profit, due mainly to lower earnings from its UK casino business, as the British economy slowed.Meanwhile, there are also concerns the finances of the company could come under additional strain if it were to spread its operations to a mature gambling market such as Las Vegas. Genting's head of strategic investments, Justin Leong, told Forbes magazine that his company could set up business in the United States. He said Genting could build a new casino or take over a listed casino company, as stock prices are expected to turn even more attractive in the next 6-18 months.Credit analysts say investors should buy protection on Genting's debt via its credit default swaps (CDS), insurance-like contracts that protect against defaults, which had outperformed its bonds."We recommend buying protection on Genting. The funding can come from selling protection on IOI or the high grade index," said Lehman's Agarwal.

Looks like Monday red, red as DJ down 250 pts & oil up 5 USD. Time to collect if below 58 cts