Buy, hold, sell.
SIN STOCKS: To gamble, to smoke or to drink?
Devil’s in the detail
BUY SUN INTERNATIONALShare price: R69.22JSE code: SUI Shares of gaming giant sun International were languishing at a 12-month low at the time of writing. The trick is for Sun to ease a heavy debt burden, incurred after investment in South America, additional exposure to limited payout machines and new developments and revamps in SA. At the end of December Sun’s debt topped R14.5bn, and directors opted to skip the dividend. What was reassuring in the most recent set of results, however, was that operational cash flow remained strong — at around R2.4bn before working capital changes — for the six months. The change of fortunes could be triggered by the recent opening of the new Time Square casino in Menlyn, Pretoria. It will be the second-biggest casino in SA after Sun’s GrandWest property in Cape Town, and is expected to be powerful cash spinner. The market has been prepped to expect an contribution of around R750m in earnings before interest, tax, depreciation and amortisation from ...
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