Keppel will NOT die. But maybe hibernate for a while.

if it is about o&g sector, the question is for how long...

we have yet to see mega M&A's for this sector - oil cos, oilfield services, rig builders, support services incl logistics...

i will not put any money in this sector for some time.

not until it has come full circle.

I only hv SHENG SHIONG.. till today its still in green.
Family run SUNDRY BUSINESS...

Yeah

There are lots of excesses built up over the last 8,9 years. They are beginning to unwind. many companies will go under and be eaten up.
Had lunch with my friend just now. Told me Premier oil of UK went from 4 to 0.28 !

Many will have liquidity problems. Shell is trying to rid of its smaller operations in Malaysia presently.
Many mergers will happen. Halliburton wants to merge with Baker Hughes.

Understand Keppel invested heavily in their shipyards the last 5 years. It may weigh on them.

Have some popcorn. Show is just beginning!

this industry is heavily capitalized, more so with the days of $100 oil.

big entry/exit barriers.

it will take years for it to consolidate completely.

we ain't see nothing yet!

stay far far away.

just enjoy cheaper petrol!

This post has been edited by AVFAN: Jan 14 2016, 03:52 PM

i only 100 units 5.31... even that is 100 plus SGD losses if cut!

but why hold when u more or less know u will lose more?

hehe... my trader mentality emerging...!

The Mandarin Oriental is now at USD1.335, if the DPU stands at USD0.07, the yield comes to about 5.2%,...... you are earning the USD.........

If one is holding SembCorp Marine instead of KepCorp, then, well,... I would agree that he cuts. But if he is holding KepCorp with a diversified business, then it's worth holding, and wait to average down.

Another news about KepCorp emerged this evening. In short :-

Environmental engineering unit commences operations and maintenance contract for Doha North project in Qatar for 10 years

Keppel Seghers Engineering Singapore Pte Ltd (Keppel Seghers), a wholly-owned subsidiary of Keppel Infrastructure Holdings Pte Ltd (Keppel Infrastructure), has achieved a substantial handover of the Doha North Sewage Treatment Works (DNSTW) to the client on 10 December 2015.

Multiple business segments for KepCorp.

Just out,...report (unaudited) for Keppel DC REIT. Looks good to me,...

The Directors of Keppel DC REIT Management Pte. Ltd., as Manager of Keppel DC REIT, are pleased to announce the unaudited results of Keppel DC REIT for the financial period from the listing date of 12 December 2014 to 31 December 2015.

Keppel DC REIT's YTD 2015 Distribution Per Unit Exceeds Forecast By 1.9%.

Results Highlights :-

•YTD 2015 :-

◦Distribution per Unit of 3.28 cents declared for 2H 2015
◦Net property income outperformed IPO forecast by 1.7%
◦Distributable income was 1.9% higher than IPO forecast
◦Annualised distribution yield was 13bps above IPO forecast

•4Q 2015 :-

◦Net property income was 1.9% higher than IPO forecast, due to contribution from Intellicentre 2 and lower property expenses. These were partially offset by lower variable rental from Singapore Properties as well as lower rental income arising from depreciation of certain foreign currencies
◦Distributable income was 2.2% above IPO forecast

•Portfolio occupancy remains healthy at 94.8%, up from 93.5% at IPO
•Portfolio weighted average lease expiry (WALE) of 8.7 years by leased lettable area
•Aggregate leverage of 29.2%
•Interest coverage ratio of 9.4 times

Comments :-
1) Looks to me like almost every parameter exceeded IPO forecast.
2) Their SG properties yielded a lower rental income,... hmm, why and which prop ?
3) The strength of the SGD is sometimes detrimental to unitholders. Because of the SGD strengthening against many currencies worldwide, rentals collected from some regions would produce lower SGDs after converting over, resulting in lower rental income from those regions. Hence, having rental props all over the world is not always good,.... unless you live in Penang.
4) DPU calculations :-

The DPU for the period Dec 12, 2014 (listing date) till June 30, 2015 was 3.56 SG Cents.

The DPU for the 3Q was calculated to be 1.64 CG Cents.

It is mentioned that the DPU for 2H 2015 was 3.28 SG Cents, hence, the DPU for 4Q must be 1.64 SG Cents.

In general, the DPU for each quarter seems to be at 1.64 SG Cents, with positive events offsetting negative events, here and there. If I have an average price of, say,... SGD 1.015 per unit, this DPU would yield me 6.46%, earning the Singapore Dollar.

I can live with 6.46%.................

Rate : BUY ! Especially if the market misprices this counter further due to current events.

For investors who are enthusiastic about SG Banks, do look closely at, not only OCBC for now, but also UOB. The prices have come down a very fair bit, and the yields are getting good.

Furthermore, of the three SG Banks, DBS is most exposed to possible defaults from O&G companies, followed by OCBC, and lastly UOB. Hence, include UOB into your radar.

But,... do not buy yet,... steady,......

in my radar UOB.... But dunno when is the lowest?

If we knew, we will all be RICH!

Good week for fishing ! Fish took my bait, line and sinker !

Hope the fish is as hungry next week

I reviewed my list of targetted REITs and Dividend Companies this evening and I saw all have gone down. YES - truly,...the days of 2008/9 have come again.

Let us prepare our bullets, pick our targets, and prepare ourselves for the big battle ahead. If we are successful in this battle, we will enjoy real passive income in the next few years, perhaps for another 8 years or so, before the next cycle comes again for the next battle.

BATTLE 2016 !!!!!...FOR PASSIVE INCOME, AND FOR TRADERS, TO HUAT AHEAD !!!

Looks like more pain and blood to come.

DJ futures down almost 400 pts now

time to collect...
Now the game is to research which of the reits having tenancy due... and low tenancy. which will affect the yield.

try not to do too much, too fast...

That's right,...now's the time to research HARD,... which of the counters are worth to go into. For investors, look at the strengths of each counter, be it in terms of tenancy rate dropping, or reducing dividend. Research hard,... and deep,....

In 2008/9, the drop and recovery was a 'V', I wondered if this time will be the same. If it's a 'V' again, then it will not be easy to catch the shares or units at the best price possible,... it's never possible to buy at the bottom, but we must try to buy at points which are not too far from the bottom point of the 'V'.

I look at it this way,... if this selldown never came, then people like us will never have a chance to buy-in cheap. Only in a market selldown like this will institutional investors have to sell due to their internal policies. The selling then snowballs, and the market plunges further and further, giving chances for retail investors like us to go in.

For those who have funds in-hand,...it's heaven on earth now,....

Research hard, load-up when the 'V' starts to turn up....

not suggesting anything, but... before buying or selling, check these:



This post has been edited by AVFAN: Jan 17 2016, 12:11 PM