Luster active after plans to set up first Cambodian gaming outlet

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KUALA LUMPUR (May 6): Luster Industries Bhd was among the most active counters in morning trades today after it revealed plans to first expand its lottery outlets in Phnom Penh, Cambodia.

The high precision plastic parts maker yesterday said it is also looking at the borders between Cambodia and Thailand, Cambodia and Vietnam, and the tourism belt along the beaches of Cambodia to set up a casino and online casino.

At 11.44am today, Luster (fundamental: 2.25; valuation: 0.5) saw some 12.9 million shares changed hands. But its share price remained flat at 11 sen.

InterPacific Securities’ remisier Sam Ng noted there was high trading activity at the counter over the last few days.

According to a dealer who declined to be named, penny stocks have lately experienced a “drastic selldown”.

“Retail investors for the past one or two weeks might have gotten burnt. Penny stocks are quite scary now due to volatile trades,” he told theedgemarkets.com over the telephone.

In the next few weeks, Luster will evaluate a few gaming and entertainment groups based in the region to form a strategic partnership, its managing director Lim See Chea said in a statement yesterday.

The firm is allocating some RM100 million as capital expenditure to expand its presence in the Cambodian gaming industry for the next three years.

Last Friday, Luster signed a share sale agreement with Opal Deluxe Ltd to acquire 600 shares for US$4.2 million (RM15.15 million) cash, for a 60% stake in Pan Cambodian Lottery Corp Ltd — a licensed number forecast operator in Cambodia.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)