As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Tuesday, 31 July 2012

Higher starting pay for fresh grads: survey

SINGAPORE: Global management consulting firm Hay Group believes that despite sentiments of a slowdown emerging in the global economy, fresh graduates will fare better this year, with employers in Singapore offering a higher base salary compared to their 2011 cohorts.

According to the Hay Group's Fresh Graduate Pay Survey 2012 conducted in June, the average starting monthly pay for pass degree holders is S$2,678 up some S$60 compared to last year's cohort of S$2,617.

Those with Honours (Second Lower and Below) are expected to earn S$2,766 - some S$55 more.

And those with Honours (Second Upper and Higher) can expect some S$2,882 - an increase of about S$30.

79 companies across general industries in Singapore took part in the survey.

The results also showed that jobs in engineering ranked at the top commanding the highest average starting salary, followed by jobs in research and development and merchandise operations.

Jobs in engineering ranked at the top, commanding the highest average starting salary of S$2,777 per month for degree holders (without honours).

This was followed by jobs in research & development at S$2,764 per month and merchandise operations at S$2,742 per month.

For diploma holders, jobs in merchandise operations commanded the highest average starting salary of S$1,934 per month, with design/creative jobs coming in second at S$1,915 per month and jobs in research & development following suit at S$1,903 per month.

Meanwhile, the average starting pay for diploma holders is about S$1,866 per month - an increase of about S$60.

-CNA/ac/ck


Kep Corp : BlackRock, Inc. Open Market Purchase

No. of Shares held before the change 89,410,466  
As a percentage of issued share capital 4.98 %

 

No. of Shares which are subject of this notice 602,000  
As a percentage of issued share capital 0.03 %

 

Amount of consideration (excluding brokerage and stamp duties) per share paid or received 10.95  

 

No. of Shares held after the change 90,012,466  
As a percentage of issued share capital 5.02 %



How are you measuring up with your investment return? (3)

Read? How are you measuring up with your investment return? (2)

SINGAPORE: The Government of Singapore Investment Corporation (GIC) sees a challenging investment outlook for the medium term.

In its annual report, GIC says investment returns are likely to be low until the global economy returns to balanced and sustainable growth.

GIC reiterates that its investments are for the long term.

For the financial year ended March 2012, the sovereign wealth fund says its 20-year annualised real rate of return remained at 3.9 percent, unchanged from the previous year.

This was partly attributed to positive returns from bonds and real estate.

The tough investment climate also saw GIC reducing its exposure to public equities to 45 percent, and increased its allocation to cash to 11 percent.

Over the same period, the allocation to bonds was cut to 17 percent.

Exposure to alternatives, which includes real estate and natural resources, remained roughly the same at 27 percent.

Meanwhile, as a measure of its ongoing performance, GIC reports 5-year annualised return at 3.4 percent while the 10-year return was 7.6 percent.
- CNA/de


Monday, 30 July 2012

Keppel Corp gets 5-yr maintenance contract with Changi Airport


Keppel Corporation on Monday said Keppel FMO Pte Ltd has secured a five-year maintenance contract with Changi Airport Group (CAG).

Commencing on August 1, 2012, the contract covers the facilities management services for the mechanical and electrical systems in Terminal 2 of Singapore Changi Airport.

Keppel FMO will provide breakdown repairs, preventive and predictive maintenance services in line with the industry's best practices.

Keppel FMO currently retains contracts with CAG for the maintenance of the airport's sensitive infrastructure, including the aircraft pavements and airfield lighting systems, as well as the maintenance of passenger loading bridges and the aircraft docking guidance systems at Terminals 1 and 2.

Four Pillars in our life to support our happiness index - Re-visit

Read? Four Pillars in our life to support our happiness index


Don't forget your Cardio exercise as it may help to slow down your burning candle.


Cardio is short for cardiovascular, which refers to the heart. Cardiovascular exercise is exercise that raises your heart rate and keeps it elevated for a period of time. Another name for it is aerobic exercise. The kinds of exercise that are associated with cardiovascular workouts are things like jogging, fast walking, and swimming where there is no break in the routine.


Most heart disease may be preventable through Cardio exercise.


Beware of this!!!





becoming ...














We must remember our family would want us to be alive and kicking rather than chasing for more money by burning out our life candle at both ends.








High Yield Stocks???

Sir John Templeton's view on High Yield Stocks

  • In selecting a stock for purchase, the dividend rate receives more attention than any other one fact, especially among nonprofessional investors. The high cost of living has caused more and more people to seek stocks that pay high dividend rates.

  • Because stockholders are conscious of the dividend rate more than other facts, this element is often over-emphasised.



Dividends are obviously seen above the Ground!

























To be successful in the management of securities, it is necessary to buy stocks that are oversold and to sell stocks that are overbought. Stocks with a high dividend rate are seldom oversold.














Sunday, 29 July 2012

Private Tutor Who Charges High Fees

Read? Too Many "Kind" Investment "GurU" giving back to the Society!

thesundaytimes Jul 29, 2012. Pg 8

Private tutor who charges high fees: "I was in gifted programme"

Education Ministry: "No, he wasn't."


Testimonial???

The parents of at least two children have also asked him to remove from his website "testimonials" purportedly coming from their children saying they had done well in the Maths Olympaid after attending his sessions, and would recommend others to join.

The parents said their children never wrote any such thing.

Mr Ong has cleaned up that bit of his website too.

-------------------------
Createwealth8888:


But, in the investment and trading education sector offered to working adults ...

"Guru" who charges high fees: "I have Secrets to make you Rich!"

Where is the Ministry???? to investigate and say "Are you?"


Read this: How to make $150K trading forex in 3 months starting with only $750

The Maths will tell you it is 200 times in 3 months!!!

The trainer is a millionaire now. He will be more than just multi-millionaire in 3 months by teaching his own kids with his own money. His family wealth will be more than Warren Buffet family in few years time. Period.


Looking for testimonials???

Plenty!!!



The Fact

When it comes to Money Mind, not all working adults are street smart enough to know the truth. That is the fact of life!










Average Down or Pyramid Up? (2)


Read?   Average Down or Pyramid Up?

Average down???

This is one of those areas in investing that Uncle8888 will has strong opposing view when he is approached for his view.


"A superb intellect is worth little in investing if you have the wrong temperament. Most investors get led astray by emotions. They get excessively care-less and optimistic when they have big profits. They get too cautious and pessimistic when they have big losses.... I've always worked on having more self-control.” - Sir John Templeton


Why???


Retail investors' big losses will not come from their single large position but usually they will lost them over a series of averaging down.

They may keep thinking that the market is wrong. They will be right over long run.

But, the truth is ........

Once they have big losses, they will do what Templeton has said: "They get too cautious and pessimistic when they have big losses...."


By being too cautious and pessimistic, some retail investors may eventually switch to more conservative investing strategies that will hinder or slow down their progress towards their own investing goals.

"A superb intellect is worth little in investing if you have the wrong temperament. Most investors get led astray by emotions." - Sir John Templeton

So don't let your emotions lead you astray by your big losses.


You still want to debate over average down???






Saturday, 28 July 2012

THE MERCHANT WITH FOUR WIVES

A Sufi Parable

Once upon a time . . .

there lived a rich merchant who had four wives.

He loved his fourth wife the most of all. He adorned her with robes and jewels and treated her to delicacies. He took great care of her, and gave her nothing but the best he could offer.

He also loved the third wife very much. He was very proud of her and always wanted to show her off to his friends. However, the merchant always lived in great fear that she might run off with other men.

He, too, loved his second wife. She is a very considerate person, always patient, and was the merchant's most trusted confidante. Whenever the merchant faced some problems, he always turned to his second wife and she would always tide him through difficult times.

Now, the merchant's first wife was a very loyal partner - nice, kind, patient, and considerate. She had has made great contributions to him in maintaining his wealth and business as well as taking care of the household. However, the merchant did not love the first wife, and although she loved him deeply, he hardly took notice of her.



One day, the merchant fell ill.

After meeting with many of the greatest doctors in the land, he knew that he was going to die. He thought long and hard of his rich and luxurious life and told himself, "Now I have four wives with me. But when I die, I'll be alone. How lonely I will be!"

So he went and met with his fourth wife. He said to her, "I loved you most, endowed you with the finest clothing and showered great care over you. Now that I am dying, will you follow me and keep me company?"

"No way!" she replied. "Now I need to go out and find myself another husband!" and she walked away without another word. The answer cut like a sharp knife deep into the merchant's heart.

The sad merchant then turned to his third wife. "I have loved you so much for all my life," he said. "Now that I'm dying, will you follow me and keep me company?"

"Not at all!" replied the 3rd wife. "Life is so good over here! I am having so much fun, why should I spoil it? Now I have to go meet with my lawyers!" And the merchant's heart sank and turned cold.

The merchant then asked his second wife, "I always turned to you for help and you've always helped me out. Now I need your help again. When I die, will you follow me and keep me company?"

"I am sorry," she said, "but I cannot help you this time. I have so many other things to do. I can only send you to your grave." The answer came like a bolt of thunder and the merchant was devastated.

Then the merchant heard a voice say, "I will leave with you. I will follow you wherever you go."

He looked up and saw his first wife standing nearby. She was so thin and pale, and looked so weak standing there that she almost looked as if she suffered from malnutrition.

With his heart full of sorrow, the merchant cried and said, "I should have taken so much better care of you while I could have!"


The Moral of the Story ....



In a way, as the saying goes . . . we are all like the merchant. We all have four wives in our lives.

The fourth wife is our our status, our possessions and wealth. When we die, they all go to others.

The third wife is our body. No matter how much time and effort we lavish towards making it beautiful and healthy, it will leave us when we die.

The second wife is our family, lovers, and friends. No matter how close they are to us when we're alive, they can only be with us up to the grave.

The first wife is our SOUL and often neglected in our pursuit of material wealth and sensual pleasures, while in truth it is the only thing that follows us wherever we go.

Perhaps it is a good idea to cultivate and strengthen it now, rather than to wait until we are on our deathbed to regret.

Createwealth8888:

If you don't believe in SOUL, the moral of the story is irrelevant.




Friday, 27 July 2012

Burning our life candle at both ends????









In the name of Passion or chasing the Big Dream, some may have over-worked or over-stretched themselves like a candle burning horizontally at both ends; which would cause the wax to drip and burn out quickly. It will not last through the night!





Is 2012 Bear 2.0 coming??? (2)

Just For Thinking ...
” If you have a worry problem, do these three things: 1. Ask yourself: “What is the worst that can possibly happen?” 2. Prepare to accept it if you have to. 3. Then calmly proceed to improve on the worst.”
(Carnegie 49)



Read? Is 2012 Bear 2.0 coming???


Bear 2.0 doesn't seem to be anywhere now; but it doesn't really cause me too much concern.











I am ready for both Bull or Bear.




Wednesday, 25 July 2012

Biosensors' Q1 net profit up 45%, sees higher FY13 earnings

Biosensors International Group Ltd, a maker of medical devices, said on Wednesday that its net profit for the fiscal first quarter ended June 30, 2012 rose 45 per cent from a year ago to US$32.63 million.

The improved performance was due to the full quarter consolidation of the results of JW Medical System Ltd (JWMS) in the first quarter, higher product revenue, licensing revenue and gain on fair value adjustments for the derivatives.

Total revenue, including licensing and royalty revenue, rose 51 per cent from a year ago to US$86.31 million.

The management expects total revenues for thefiscal year ending March 31, 2013 to grow between 20% and 30%, driven by continued strong revenue growth from its drug-eluting stent (DES) as well as modest licensing and royalty revenue increase.


The shocking truth about growth investors???

Just For Thinking ....

Read? The shocking truth about growth investors

Here is the truth!!!

Kep Corp XD today so Uncle8888 has the 4th Member joining the Round Table of Infinite Return.





















Rule No.1: Never lose money. Rule No.2: Never forget rule No.1

Just For Thinking ....


The most quoted among investors especially value investors.

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1



Berkshire's biggest losers in 2011

The drag any particular stock has had on the portfolio really depends on the time frame in question. Some have lagged for three years, and some for only one. It's even trickier than that, though, as the portfolio always is changing, making it tough to pinpoint what lost what when. As for the biggest drags we can identify, though ...

  • Bank of America: Berkshire doesn't own it any longer, but it was a fairly big holding back in 2010 that he sold in the fourth quarter of that year. Thing is, the stock had lost more than a third of its peak value from 2010 by the time fourth quarter rolled around. That said, note that Buffett still has a Bank of America position via preferred shares, which is doling out a pretty sweet 6% yield. The preferreds also are convertible into common shares at $7.14, but for the time being it's acting like fixed income.
  • Bank of New York Mellon: This was purchased some time in the third quarter of 2010, which initially proved to be good timing -- the stock bounced back from $25 then to a peak of $32 by the beginning of 2011. Unfortunately, it hit sub-$18 levels by October of last year, and he still owned most of it then.
  • Wal-Mart : Buffett has had it for the whole three-year span. Though it was a minor position (about 3% of the whole portfolio), it still made no meaningful net progress between early 2009 and mid-2011, which didn't help his overall results.
  • ConocoPhillips This probably is the biggest drag on the portfolio for the past year, as well as for the past three years. The stock has lost 31% for the past 12 months and has gained just about 19% for the past three years. Buffett acknowledged that he paid too much for ConocoPhillips.

Of those four names, Conoco probably would be categorized as the biggest letdown, even by Buffett himself.

Bottom line

Warren Buffett remains a great investor, but he's not infallible.


-------------------------------

Createwealth8888

Let get Real!!!!

Losing money is part of the Game and after sometime in the stock market it is inevitable!!!






Tuesday, 24 July 2012

Understanding Stock Market Risks - Financial Fraud Risk is Real! (5)

Read? Understanding Stock Market Risks - Financial Fraud Risk is real! (4)


CHINA Hongxing Sports' special auditor found that the company overstated FY2010 cash and bank balances by 1.15 billion yuan, while payments were made without board approval at two key subsidiaries.

Trading of shares in the company has been suspended since Feb 28 last year, after external auditors Ernst and Young flagged financial irregularities in its FY2010 accounts. The board appointed nTan Corporate Advisory to carry out an independent investigation on March 1 last year.

nTan said in the report, released last night, that the group had cash and bank balances of 263 million yuan as at Dec 31, 2010, not 1.42 billion yuan as claimed in its initial FY2010 accounts.

In its revised accounts, the group said the disparity was due to expansion expenses, as well as payments to six distributors in the form of short-term interest-free loans among other items.

-----------------------------------

Createwealth8888:

The Hen & the Pig Go To Breakfast


A Hen and a Pig were sauntering down the main street of an Indiana town (yes, this is another shaggy dog story!) when they passed a restaurant that advertised “Delicious ham and eggs: 75 cents.” “Sounds like a bargain,” approved the Hen. “That owner obviously know how to run his business. “It’s all very well for you to be so pleased about the dish in question,” observed the Pig with some resentment. “For you it is all in the day’s work. Let me point out, however, that on my part it represents a genuine sacrifice.”



All stocks by nature are risky.

We can only protect themselves by risk control and money management. So you the Hen or Pig when come to investing your money in any one stock?




Top sources of wealth for the self-made millionaires???

Just For Thinking ...


By CNBC's Robert Frank

The top sources of wealth for the self-made millionaires were investments and capital appreciation; compensation and employee stock options or profit sharing. Self-made millionaires feel just as secure as the inherited rich, although inheritors were more likely to use financial advisors.

-----------

Createwealth8888:

That is exactly what I am trying to achieve. Create wealth from the stock market.





Monday, 23 July 2012

Keppel Shipyard secures conversion contracts worth S$103 million


Singapore, 23 July 2012 – Keppel Shipyard Ltd (Keppel Shipyard) has secured three conversion contracts with an initial combined value of S$103 million. The contracts are from PTSC Asia Pacific Pte Ltd (PTSC Asia Pacific), Perenco Group (Perenco) and BC Petroleum Sdn Bhd (BC Petroleum).

The contract from PTSC Asia Pacific, which is a joint venture between PetroVietnam Technical Services Corporation (PTSC) and Yinson Holdings Berhad (Yinson), is to convert a tanker to a Floating Production Storage and Offloading (FPSO) unit.

The second contract is from Perenco to convert a tanker to a Floating Storage and Offloading (FSO) unit.

The third contract is from BC Petroleum for the modification and upgrading of a tanker to an Early Production Vessel, EPV Balai Mutiara.

Mr Nelson Yeo, Managing Director of Keppel Shipyard, shared, "We thank PTSC Asia Pacific, Perenco and BC Petroleum for their confidence in our capabilities and entrusting us with these projects. Working closely with our customers, we will continue to enhance and extend our capabilities, and ensure safe and quality deliveries."

Keppel Shipyard’s work on the FPSO for PTSC Asia Pacific will commence in 3Q 2012 and is scheduled to complete in 3Q 2013. When delivered, the FPSO will be deployed in the Thang Long and Dong Do oil fields which are located in the Cuu Long Basin, offshore Vietnam. The FPSO will be capable of producing 15,000-20,000 barrels of oil per day (bopd) and has a storage capacity of up to 650,000 barrels of oil.

Keppel Shipyard’s work scope for this FPSO project includes refurbishment and life extension works; fabrication and installation of the flare tower, helideck, pipe racks and power generation module; installation and integration of topside process modules and external turret; and upgrading the accommodation facilities.

Over the years, Keppel Shipyard has delivered seven FPSO and FSO projects to Vietnam. Two of these projects, Armada TGT 1 and FPSO Lewek EMAS, were delivered in 2011.

For the contract with Perenco, Keppel Shipyard’s work scope includes refurbishment and life extension works, accommodation upgrading, installation of new machinery, mooring structures and helideck as well as tank coating works.

Works will commence in 3Q 2012 and are scheduled to complete in 1Q 2013. The converted unit will be named FSO Mayumba, and it will be stationed in the Lucina field, offshore Gabon.

On the contract from BC Petroleum, the scope of work for Keppel Shipyard includes refurbishment and life extension works; fabrication and installation of flare tower and helideck; integration and modification of process module and the upgrading of the accommodation facilities. When completed, EPV Balai Mutiara will be deployed in the
Balai Cluster oil fields, offshore Malaysia.

The above contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

Singapore inflation edges higher to 5.3% in June

SINGAPORE: Inflation in Singapore continues to climb with housing and transport costs topping the increase.

The consumer price index, a key gauge of inflation, rose to 5.3 per cent year-on-year in June, according to a statement from the Department of Statistics.

The data exceeded market expectations of a 5.1 per cent increase.

Prices remain firm as the effect of housing becomes stronger, gaining 9.7 per cent in June, with the cost of accommodation increasing by 10.8 per cent on-year.

Transport cost gained 8.7 per cent last month from 2011, with the increase mainly in private road transport because of higher car prices.

Measured month-on-month, the index was unchanged after climbing 0.1 per cent in May.

MAS Core Inflation, which excludes the costs of accommodation and private road transport, was unchanged at 2.7 per cent for the third straight month.

- CNA/wm


What was I thinking and feeling in Mar 2009 Bear market low? (4)

Just For Thinking ....


Read? What was I thinking and feeling in Mar 2009 Bear market low? (3)

Sir John Templeton's Growth Fund 4 Decades Performance

A sum of $10,000 invested in his Class A portfolio in 1954, when he set up the Templeton Growth Fund, would have grown to $2m by 1992, when he sold his stake. This represented CAGR of 14.5% over 38 years


In investment, from year to year, investors will inevitably experience significant volatility, even John Templeton had good years and bad years. He was one of finest stock pickers of all time; but as real investor he had his fair share of picking lousy stocks too.

His heavy investment in Polly Peck turned worthless and he also lost heavily in Cable & Wireless.

 


What was I thinking in 2009 ...


Looking at STI in 2008/09 as indicated in Pink line ...








In a rising stock market (late Bear/early Bull) ...


Read? A newbie in the Market since Jul 2008

Now, I realised that in a rising stock market, sometime the element of luck may play a bigger role, but; over long term in the market, investors will have to depend more than just luck to achieve long term average return.







Real wages may drop 2.7% in 2012: survey


Real wages in Singapore are expected to decrease 2.7 per cent in 2012, according to a survey released by the Singapore Human Resources Institute (SHRI) on Friday.

The basic wage increase in 2012 will average 4.1 per cent for the full year, similar to that for last year, while variable bonuses, excluding annual wage supplement (AWS) are expected to average 1.6 to 2.0 months this year, lower than the 2.2 months in 2011.

The wage increase and lower bonus this year means a total wage increase of only 1.5 per cent.
"With the consumer price index expected to increase by 4.2 per cent there will be a drop in real wages of around 2.7 per cent," said the SHRI.


Sunday, 22 July 2012

Can recommend some high yield dividend stocks for passive income? (3)

Just For Thinking .....


Read? Can recommend some high yield dividend stocks for passive income? (2)


When Uncle8888 said this:

"Any Tom, Dick, and Harry who has $X,XXX or $XX,XXX on Monday can immediately become an investor with high yield dividend stocks for passive income." - Createwealth8888

Some people read liao sibei buay song!!! They may think Uncle is talking cock!


Now, let us hear it from Sir John Templeton.

He is one of the most successful and best known professional investors of the past 100 years.

How to Increase Your Income from Investments

Memorandum to Clients February 15, 1954

Any good investment research man can prepare for you within a few minutes a well-diversified list of stocks yielding over 10 percent. On the basis of market prices on February 10th and the dividends paid in the last 12 months, Van Norman Company yields 10.5 percent, Moore-McCormack Lines 11 percent, Barker Brothers 11.7 percent, Pond Creek Pocahontas 11.9 percent, Butte Copper 12.3 percent, Nash-Kelvinator 12.8 percent, Pacific Tin 13.0 percent, Great Northern Iron Ore 13.0 percent, Inspiration Consolidated Copper 13.1 percent, and Roan Antelope Mines 15.6 percent. These are all well established corporations with shares listed on the New York Stock Exchange.

This is an easy method for increasing your income from investment; but it is the worst of all methods. Stocks sell at low prices in relation to current dividends usually because there are good reasons for expecting that the dividend may be reduced. Investors selecting stocks with high current yield face not only the risk of reduced dividends but also the greater risk of capital losses.

A far wiser method of increasing your income is to select stocks with the highest earnings in relation to market price. This will usually mean that your stocks have good prospects for paying increased dividends rather than prospects for paying reduced dividends. Many good stocks can now be found whose annual earnings are more than 15% of the market price.

Such earnings are partly reinvested by the company for the benefit of stockholders which, in turn, leads to still higher earning per share in future years. Of course, in seeking such stocks you should skip those whose earnings are high for one or two for abnormal reasons and search rather for those likely to have a high level of earning for many years in the future.

In the endeavour to increase your income, it is wise also to select growth stocks. Growth stocks are most likely to earn more and pay increased dividends in the future years. Usually growth companies have a higher rate of earning in relation to net worth. By retaining a large share of its earnings each year a growth company may be able to double its net assets per share within a relatively few years; and this in turn may lead to increased earning and dividends.

------------------------------------------------------
Createwealth8888:


Read? How to become rich in stocks??? (10)

Two great investors have spoken on the importance of Retained Earning for future income growth.























Whose words can you believe most???

Left or Right Bunny. The choice is yours!!!












Saturday, 21 July 2012

Sir John Templeton's 16 Rules

Just For Thinking .....

1. Invest for maximum total real return

2. Invest—don’t trade or speculate

3. Remain flexible and open-minded about types of investment

4. Buy low

5. When buying stocks, search for bargains among quality stocks.

6. Buy value, not market trends or the economic outlook.

7. Diversify. In stocks and bonds, as in much else, there is safety in numbers.

8. Do your homework or hire wise experts to help you.

9. Aggressively monitor your investments.

10. Don’t panic.

11. Learn from your mistakes.

12. Begin with a prayer (Createwealth8888: Think of Risks before Profits)

13. Outperforming the market is a difficult task.

14. An investor who has all the answers doesn’t even understand all the questions.

15. There’s no free lunch  (Createwealth8888: Don't be fooled into investment courses teaching Secrets)

16. Do not be fearful or negative too often.


His Performance Result

A sum of $10,000 invested in his Class A portfolio in 1954, when he set up the Templeton Growth Fund, would have grown to $2m by 1992, when he sold his stake. That represented an annualised average return of 14.5% over 38 years or CAGR > 3.7%.


Read this book? Templeton's Way with Money by Jonathan Davis and Alasdair Nairn





How to become rich in stocks??? (11)



How to become rich in stocks??? (10)

Coming next ....    

ABNORMAL RETURN




How long will 8-10% return P.A. take to make us rich when we are NOT already rich?

Be realistic. Do the Maths. Work out the answer for yourself!

It is going to take damn long to become rich.  Right?

By then we are ....























Got plenty of money but no energy to enjoy it!!!

Does it worth your effort and patience???


Then how????







To become rich from stocks when still younger, we must make Abnormal Return!!!

Some will call it Luck!


Some will call it Patience!


Some will call it Gut!


We can call it whatever we like!

But, we shall never deny this fact of life: We all reap what we sow!

The bottom line is, if  we want to create wealth from stocks, we must sow Seeds of Wealth. In fact, most of the seeds sown will not grow well.  Hopefully, some seeds may eventually over time grow to become Money Trees. But, before Money Trees can happen, did we ever give them enough chance to happen?

No, No, No!

This is what most people likely to do.

When Autumn is near and the leaves are falling. They start pulling off the young roots as they fear that they will not survive the harsh Winter.

How many of us are willing to test ourselves against the Seasons of our Time?

But who knows?

When Spring comes, Robins come, new leaves come, and then by the next Autumn, the young tree may grow a little taller to survive the next harsh Winter.


Season after season this is how we grow our Money Tree.  No short cut!!!!




























Abnormal Return

We have 10-Year Series for G.C.E 'O' and 'A' Level Exam.

Here is Uncle8888's 10-Year Series on Abnormal Return.

BTW, Uncle8888 is still patiently looking forward for more 10-Baggers Return!!!



Uncle8888's Model Answer

Seeds of Wealth can only be sown during harsh Winter.

When these Seeds of Wealth manage to survive over the harsh Winter; it may grow taller and taller to survive each season of Autumn and Winter until they become Money Trees.

Life is fair. We all reap what we sow!



























Friday, 20 July 2012

DBS

Brazilian oil giant Petrobras said it will award imminently contracts worth $4.5 billion for the construction of topsides for six of its eight "replicant" floating production, storage and offloading vessels bound for the Sapinhoa and Lula pre-salt oilfields in the Santos basin.

http://www.upstreamonline.com/live

The companies that receive the contracts in the next few days will be DM Construtora de Obras /TKK Engenharia, IESA Oleo e Gas, Tome Engenharia/Ferrostaal Industrieanlagen, Keppel Fels, Jurong Shipyard and Mendes Jr Trading Engenharia/OSX Construção Naval.

The contracts include integration with the FPSO hulls that are already under construction at the Estaleiro Rio Grande shipyard.

Petrobras said the contract for the topsides and integration of the seventh and eight replicant FPSOs will be awarded within the next 18 months.
Of the total eight FPSOs, two will be used on the Sapinhoa field in Block BM-S-9 and six on the Lula field in Block BM-S-11.

The Block BM-S-11 owners are Petrobras (65%), BG (25%), and Petrogal (10%).

The Block BM-S-9 partners are Petrobras (45%), BG (30%), and Repsol (25%).


Too Many "Kind" Investment "GurU" giving back to the Society!!!

Read? Does attending investment course really help?

Listen carefully to audio: Another "Kind" "Guru" helping people to become Rich. Who? You or him?

In the History .... we have ....

W.D. Gann is one of the most famous traders of all time, and has a huge devoted following - however the fact is, Gann never made the huge profits many of his disciples claim.


He did not have a success rate of 90%, as is often claimed - the logic his methods are based upon are unsound, and his predictive methods don't predict - they leave everything to subjective opinion!

Many sources quote Gann's trading profits at $50 million dollars, however this is not true.

An interview that Alexander Elder had with his son tells the truth.

Firstly, his son confirmed that when his father died in the 1950s his estate was valued at just $100,000 - and that included his house.

Secondly, his son confirmed that Gann was unable to make enough money from trading, and therefore supplemented his income by writing and selling courses.



Createwealth8888:

So far, I have face-to-face conversation with three people who have attended these training courses:

A: ChatWhatEverMakeMoney
B: MakePeopleMillionaireDreamWho?You?Me?
C:BankruptBecomeMillionaireUCanDoItHow? and ChatWhatEverMakeMoney


Do they have superior trading performance after that? When the trainees can't perform, it is always their faults as they don't seem to understand while there are many testimonals of those who can.

HOW COME AH????

For newbies, it is good to attend those basic course teaching you how to read financial statements will be better and it is so much cheaper.


Thursday, 19 July 2012

Mind Flip (4)


Read? Mind Flip (3)

Someone told me he has a Mind Flip after re-reading all the posts in this series:



Read? How to become Rich in stocks?





Like it or not. Investing in the stock market is still the Game of Mind and Game of Strategies.

3M's - Method, Mind and Money. Method is the least important of the 3M's and yet many are constantly seeking it as the most important of them.


Read? Have you spend enough time thinking on your money management stratgeies? (2)





10% dividend yield for 10 years? Fact or Fiction? (4)

Read? 10% dividend yield for 10 years? Fact or Fiction? (3)

Today, with the announcement of 2012 H1 interim dividend from Kep Corp of 18 cents. Up from 17 cents last year.

Uncle8888's historical dividend collection has crossed another major milestone:

  1. Dividend Return: 305% over 10.8 years or 28.1% per annum for Batch 1
  2. Dividend Return: 104% over 8.3 years or 12.5% per annum for Batch 2

The dividend by itself has already pay back the initial capital invested for Batch 2. So Mathematically, it is infinite return from now onwards.

















Kep Corp 2012 H1 Report Card


1. Net profit improved 83% to S$1,272 million, compared to 1H 2011’s S$696million.
2. Earnings Per Share of 71.0cents, up 81% from 1H 2011’s 39.2cents.
3. Annualised ROE of 22.4%.
4. Economic Value Added increased from S$472 million to S$1,052million.
5. Cash outflow of S$103million.
6. Net gearing of 0.21x.

7. Interim dividend of 18.0 cents per share.










Wednesday, 18 July 2012

Kep Corp

After 55, CPF OA is as good as Temasek's bonds

Temasek's US$1.7b bond issue 4.5 times subscribed

It sells US$1.2b worth of 10.5-yr bonds and US$500m worth of 30-yr bonds
 
TEMASEK Holdings has sold US$1.7 billion worth of US dollar bonds in an offering that was heavily oversubscribed, allowing it to raise long-term funds at record-low interest rates.
It received orders totalling US$7.6 billion - some 4.5 times the original size of the offer - from institutional investors worldwide.

The strong demand allowed Temasek to price the bonds - issued in two tranches - at lower yields than originally expected.

It sold US$1.2 billion of 10.5-year bonds maturing in 2023 and US$500 million worth of 30-year bonds maturing in 2042.

Monday, 16 July 2012

K-Green Trust's profits slip 0.53% for 1H2012 y-o-y


K-Green Trust's profits for the first half of 2012 slipped by 0.53 per cent year-on-year to S$7.87 million, announced the company on SGX on Monday.

Earnings per unit for this period was 1.25 Singapore cents. Distribution per unit to be paid will be 3.13 Singapore cents, unchanged from the same corresponding period last year.

Thomas Pang, CEO of Keppel Infrastructure Fund Management, K-Green's trustee-manager, said, "K-Green Trust continues to perform well in this period and remains committed to deliver stable, predictable and reliable distributions to its Uniholders."

He also expects K-Green's portfolio to remain stable as all three of its assets - Senoko Trust, Tuas DBOO Trust and Ulu Pandan Trust - have long-term concession agreements with the National Environment Agency and Public Utilities Board. Senoko Trust and Tuas DBOO Trust both derive most of their income from capacity payments which offer a stable source of income and are unlikely to be affected by fluctuations in the economy.

STI



2,998.75 Up 3.19(0.11%)



Your First $100K realized profit from the stock market? - (4)

Just For Thinking ...

Read Act 1: The Elephant And The Rope Round His Neck


Rad Act 2: Read? Your First $100K realised profit from the stock market? - (3)

Combining the Moral of the Two Stories into one ...


Are you being held by your own belief and investing style?

Are you being held back by your own investing kakis?






Sunday, 15 July 2012

How and when to buy stocks is not the most difficult part? (2)

Just For Thinking ...


Read? How and when to buy stocks is not the most difficult part?

 
"mindset! totally agree with you ...
care to share how u conquer yours? thanks!"



Read? Understanding Prospect Theory - Re-visit


The Moral of the Story ..

Most of us scare to lose money or giving back some winning money on the table.

Read? Reading This Won't Make You Great!

WHY, WHY, WHY???

Most of us may read financial and investment books, articles, or even blog posts hoping to acquire more knowledge to improve our investing or trading skills.

Even after you read something that you strongly believe it is working right or true; you may not be able to transform your investing behaviour to the desirable state of emotions to achieve your investing goals.


Retail investors must learn this lesson from the World's greatest investor in our time ...

“To invest successfully over a lifetime does not require stratospheric IQ, unusual business insight, or inside information. What’s needed is a sound intellectual framework for decisions and the ability to keep emotions from corroding that framework” - Warren Buffett, World’s greatest investor
 
Do you have your own sound intellectual framework for decisions and the ability to keep emotions from corroding that framework?
 
 
Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.- Warren Buffet


That is Warren Buffet's Rule on money management.

I have modify his Rule to become:

Uncle8888's Rule No 1: Don't lose my capital. All stocks are risky except pillow stocks!


To understand this Rule, read these at your own time and own target. Happy reading or don't bother reading!









Read? Uncle8888's Portfolio Management


Read? Uncle8888's Pillow Strategy





 
 
 




How to become rich in stocks??? (10)

Read? How to become rich in stocks??? (9)

Many retail investors love to learn from Warren Buffet's investing lessons especially those under the classification of Value Investors.


"Your success in long-term investing may not be what you actually see and get now. Your delay Gratification may lead to super return that you couldn't even believe it." - Createwealth8888




Warren Buffett and the Magic of Retained Earnings

Let Me Have A Dollar

If I had a magical process for investing capital at a high rate of return, let’s say at 20 percent, and you invest $5 with me, at the end of the year I will have made you $1.

You will now be faced with three options:

1. You can take the $1, in which case you can spend it or invest it elsewhere, perhaps in a llama farm.

2. You can leave the $1 with me and allow me to reinvest it for you.

3. Or together, we can use the $1 to buy out existing shareholders.

The first question that should come to mind, if you leave the money with me to reinvest, is “are our children learning,” and next, “Will I have the ability to continue generating the 20 percent rate of return?” Then, if you take the $1, what rate of return can you expect to achieve … in the llama farm? The answer to the first question is found in two components:

1. The track record of ROE in my business.

2. The historic retained earnings off of my business’s balance sheet.

If historically, my business has retained earnings and the ROE has remained strong, averaging 20 percent, then by all appearances the business has the ability to put the $1 to good use, reinvesting it at the high rates of return on equity. If, on the other hand, my business has historically retained earnings (plowed them back into the business for expansion, new business projects, and so on), yet the return on equity has steadily dropped over the years, then it appears that I have poorly allocated retained earnings into low returning investments, and I do not have the capability to effectively expand the business or, at the very least, the core, original business has begun to suck wind. Either way, you will see this as a drop in ROE and perhaps a paltry, anemic ROE track record.




















Saturday, 14 July 2012

Brazilian giant Petrobras has approved construction of six new semi-submersible drilling rigs in a contract with its independent holding company, Sete Brasil.

The semisubs are a part of a lot of 21 rigs that Petrobras had previously contracted Sete Brasil to
build in an agreement signed 9 February. Delivery of the semisubs is expected in 2016.

The rigs will be built at the Brasfels Shipyard in Angra dos Reis and will contain local content of between 55% and 65%, Petrobras said in a statement late on Friday.

The rigs will carry out well-drilling activities in the pre-salt layer of Santos basin and will be capable of operating at a water depth of 3000 metres, with the capacity to drill wells of up to 10,000 metres.
After construction, the rigs will be chartered to Petrobras for 15 years. Three of the rigs will be operated by Petroserv, two by QGOG and the other by Odebrecht O&G.

Late for stock investing as the path to financial independence (2)


Sometime on a certain occasion when retail investors have a chance to come together, they may like to ask which investment books are good for further reading. Usually, I would to like to mention "Rich Dad Poor Dad". Sometime I could tell from their body language is like what so great about his book. 

I believe this book is widely read.

But, somehow I realised from this book may be quite differently from many others. I didn't see it as investing in Properties or becoming Business owners is the way for me to go. I began to strongly believe that there is a viable alternate path to reach financial goals by climbing investment ladder instead of corporate ladder. This investment ladder may greatly help to complement or supplement my limited earned income due to having stuck in the middle path.














I also know that deep in my heart, there is little or no chance for me to climb beyond certain level of the corporate ladder without having to join in the Rat Race to step over each other to find the way up to fewer and more difficult  spots. But, climbing the investment ladder is so much different, the higher you climb, the more and better opportunities may start opening up.


Read? Talent and Investing?? (2)

Read? Late for stock investing as the path to financial independence

Read? Reading this won't make you great!

Yes. We can read widely but how the reading makes us great it is up to us do it in our own realized way. It can be too personal!




Friday, 13 July 2012

China seeks to wrest offshore rig crown from Singapore, Korea

HONG KONG/SEOUL, July 13 (Reuters) - China is emerging as a strong contender to the traditional offshore oil rig manufacturing powerhouses of Singapore and South Korea as shipyards such as COSCO Corp fight for a bigger market share in a deepwater exploration boom.

China started making jack-up rigs for shallow-water drilling and semi-submersibles for deepwater operations about seven years ago. In that short span of time, industry data shows it managed to secure a fifth of the $72 billion orders placed, tempting customers with aggressive pricing.

China also topped the annual orders lists at least twice during that period. In 2009, it outpaced Singapore, traditionally the dominant producer of jack-ups, and in 2006 and 2011, ousted South Korea on semi-submersibles.

"Over time there is no reason why Chinese yards -- the good yards -- could not be competitive internationally," Scott Kerr, chief executive officer of Norwegian oil service company Sevan Drilling, told Reuters.

Sevan has taken delivery of two ultra-deepwater rigs worth more than $1 billion from COSCO and has ordered another two such rigs from the shipbuilder, which operates seven yards in China, for delivery in 2013 and 2014.

The Norwegian oil service company bypassed shipyards in South Korea and Singapore partly because their yards were almost full and the Chinese offered a competitive price, Kerr said.

The better pricing had its downside. COSCO dragged its feet on the delivery of the first rig, the world's first cylindrical drilling unit, as the yard initially lacked some of the know-how to build and assemble sophisticated offshore equipment, he said.

With quality and delivery reliability a persistent concern, China remains a distant No. 3 among rig builders. In the first half of 2012, China secured just three orders out of the 29 placed during the period, versus 11 for South Korea and six for Singapore, data from Credit Suisse shows.

China's poorer showing so far this year is partly because most of the orders were for deepwater rigs, where Singapore and Korean yards still have a competitive edge. In the second half of last year, 14 out of 26 rigs ordered were jack-ups. China has had more success winning orders for that rig type.

But with newly acquired expertise, foreign technology and cheaper prices, Beijing could become a major offshore oil equipment making hub in 10 years, just as Singapore and South Korea supplanted shipyards in the United States and Europe in the 1990s, industry watchers say.

Strong financial backing from Chinese state banks also helps make payment terms attractive. Clients ordering from China could put down a fraction of the price as downpayment, sometimes as little as one percent.

Chinese yards garnered nine out of the 26 orders placed for all rig types in the second half of last year, industry data shows. That put China ahead of South Korean shipyards, which received eight contracts, and Singapore, which got only five.

Competitors have taken notice.

"I am in Singapore. I talk to vessel builders all the time. Singaporeans are very worried about the Chinese shipyards," said Jason Waldie, director of energy consultancy Douglas-Westwood. "The Koreans are also worried."

China expects to boost its share of the global offshore energy equipment industry to 20% by 2015 and to 35% by 2020 from under 8% in 2011, the official Xinhua news agency said. Chinese yards received $4.7 billion in orders last year, according to Xinhua.

The global economic slowdown has slashed demand for bulk cargo and container vessels. That drove Chinese shipbuilders like Cosco, China State Shipbuilding Corp (CSSC), China Merchants Heavy, China Shipbuilding Industry Corp (CSIC), Yantai CIMC Raffles and Offshore Oil Engineering Corp to start filling their idled yards with offshore projects.

"There is an excess of shipbuilding capacity in China. To fill their yard capacity, definitely many Chinese yards will have to be more aggressive in the offshore equipment market," said Gerald Wong, an analyst at Credit Suisse in Singapore.

More than 28 Chinese yards, including Shanghai Zhenhua Heavy Industries Co, have announced expansion plans to take on offshore projects, he told Reuters.

Investors in Singapore and Korean builders such as Sembcorp Marine, Keppel, Samsung Heavy , Hyundai Heavy and Daewoo Shipbuilding & Marine Engineering appear unfazed by the Chinese.

Their share prices have been resilient this year and are backed by a series of 'buy' or 'strong buy' ratings from securities houses, Thomson Reuters data shows, outperforming benchmark indices and their Chinese peers.

Chinese shipyards like Cosco, Yangzijiang and Guangzhou Shipyard have seen steep declines in their shares in the past year as most of them are not moving out of commercial vessels, a languishing sector, quickly enough.

Their bidding for offshore equipment orders with low prices and attractive terms has also hurt profit margins. Douglas-Westwood's Waldie said Chinese yards can build equipment that is up to 20% cheaper than the output of their overseas counterparts.

"They are a threat. They are coming fast. They will take over or be as competitive," Sevan's Kerr said of Chinese yards. "For the Koreans or the Singaporeans to say that's not going to happen, they are kidding themselves."

The recent deployment of China's first home-made ultra-deepwater rig Haiyang Shiyou 981 suggests the country has developed the capability of producing internationally competitive and sophisticated offshore equipment, experts say.

Fitted with the latest technology of Houston-based naval and marine engineering company Friede Goldman acquired by China in 2010, the $1 billion rig owned by CNOOC was launched amid much fanfare in May and is to operate in waters as deep as 3000 metres.

Executives at South Korean rig makers shrugged off concerns about China, saying their yards producing deep-water rigs will continue to rule the roost for a long time.

South Korea makes no jack-ups but leads in production of increasingly popular drillships, garnering 87% of orders valued at $59.2 billion placed between 2005 and 2011, industry data show.

"We are far ahead of the Chinese," said Ahn Ik-chul, head of Daewoo Shipbuilding's public relations, citing the solid track record of Korean yards in delivery reliability.

By contrast, Yantai Raffles, now a unit of China International Marine Containers, had suffered a series of delivery delays in recent years that irked customers including BP and China Oilfield Services.

Big customers still turn to Singapore or Korean yards for quality. Denmark's Maersk Drilling, a unit of A.P. Moller-Maersk, said last week it planned to pay up to $8 billion for seven new oil rigs by 2017.

"We expect the new rigs will also be built in Singapore and South Korea. That's where the quality is," Maersk Drilling's chief executive Claus Hemmingsen told Reuters.

But industry experts say China may catch up quickly as the gap between Chinese yards and their South Korean and Singapore rivals is probably more about project operating and management expertise rather than technology.

None of the yards in Asia makes the high-tech parts used in deep-water rigs, such as hydraulic and drilling control systems. Those are all made by Western firms like Siemens, Aker Solutions and Cameron.

"It is not so much a technology gap. It is a management gap," Kerr said. "China can be just as competitive in building those (rigs) as anyone else."

Thursday, 12 July 2012

Why are we blogging? (2)

Read? Why are we blogging?

This is kind of funny. I am finding a few bloggers behaving like small little cyber kids.

When they tio whacked by some sibei buay song cyber readers over their blog posts, they started shouting loudly like small little kids when they kena hit or scolded by their playmates like ......

"I no friend you any more!".

"I no play with you anymore!"




You guess what happen next ....


Wednesday, 11 July 2012

Tales of fortunes made and lost in recessions. Re-visit

MARKET crashes are the greatest redistributor of wealth. This has been true of previous crashes.


Read? Tales of fortunes made and lost in recessions

Understanding Prospect Theory - Re-visit

Just For Thinking ...



Read? Understanding Prospect Theory



Read? How Winning and Losing Alters Our Perceptions of Risk




Keppel FELS Brasil secures US$200 million FPSO topside contract from repeat customer

Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiary Keppel FELS Brasil, has secured a contract worth approximately US$200 million from MODEC and Toyo Offshore Production Systems Pte Ltd (MTOPS), a joint-venture company established in Singapore by Toyo Engineering Corporation (TOYO) and MODEC, Inc.

The contract is for the fabrication and integration of topside modules for the Floating Production Storage and Offloading vessel (FPSO) Cidade de Mangaratiba MV24 at Keppel FELS Brasil's BrasFELS yard in Angra dos Reis, Rio de Janeiro, Brazil.

Scheduled to be completed by 2Q 2014, the FPSO will have a daily production capacity of 150,000 barrels of oil per day (bopd) and storage of 1,600,000 barrels of oil. It will be chartered to Tupi B.V - a Dutch company owned by PETROBRAS NETHERLANDS B.V. (65%), BG OVERSEAS HOLDING LTD. (25%), and GALP ENERGIA E&P BRASIL B.V. (10%) - for 20 years and deployed at Lula-Iracema South Area in offshore Brazil.

Mr Chow Yew Yuen, Chief Operating Officer of Keppel O&M, said, "We would like to thank our repeat customer MTOPS for reaffirming their confidence in us. This is our second project with them and we are committed to deliver it safely, on time and within budget. The first project, the integration of topside modules for the FPSO Cidade de Sao Paulo is progressing well, and we look forward to support MTOPS as they grow their presence in Brazil.

"Keppel's BrasFELS yard is the most established yard in Brazil and has a proven track record of offering a full range of offshore and marine solutions, including the fabrication and integration of topside modules. We are continuously making improvements to the yard so that we can better serve our customers."

Work is expected to commence at BrasFELS in 4Q 2012. The major work scope includes fabrication of the helideck, flare tower, risers, manifolds, waste heat recovery units, sulphate removal unit, water injection unit and integration.

Mr. Shigero Usami, President of MODEC Singapore said, "We are pleased to award this project to Keppel FELS Brasil as they have demonstrated their strong performance in the integration of the FPSO Cidade de Sao Paulo. We are confident that both vessels will be delivered to our highest satisfaction and be a success when deployed for our customers.

"As a leading FPSO operator, we are ideally positioned to support the growth of Brazil's oil and gas production. In partnering an established shipyard like BrasFELS, we help ensure that our customers get their FPSOs on time to meet their production targets."

The first project between Keppel and MTOPS on the fabrication and integration of topside Modules for the FPSO Cidade de Sao Paulo was contracted in December 2010. Work on the project is progressing on track and expected to be completed by 4Q 2012.

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

Keppel acquires stake in KrisEnergy (2)

Read? Keppel acquires stake in KrisEnergy

July 10 close: $10.78
CIMB Research, July 10

KEPPEL'S US$115 million investment (20 per cent stake) in South-east Asia upstream oil & gas company KrisEnergy could be a precursor of a potential IPO.

KrisEnergy was set up by the founders of former SGX-listed Pearl Energy which was sold to Abu Dhabi-listed Aabar Petroleum in 2006.

We do not expect material earnings per share (EPS) contribution from the deal for now.

Apart from the IPO potential, we think Keppel could also tap KrisEnergy's development field to supply offshore equipment.

Maintain "outperform" and target price based on revised net asset value (RNAV) with stronger offshore order momentum and margins as key catalysts.

Keppel via its investment division has subscribed for 20 million shares, or a 20 per cent stake in KrisEnergy, for US$115 million. Armed with a war-chest of US$500 million, KrisEnergy was established in 2009 by Pearl Energy founders Keith Cameron, Chris Gibson-Robinson and Richard Lorentz, together with a US-based private equity firm, First Reserve Corporation.

KrisEnergy's portfolio of three offshore producing fields - B8/32, B9A in the Gulf of Thailand and Glagah-Kambuna TAC in Indonesia, which has a combined production average of 4,800 boepd in 2011 (2012 forecast: Net production of 3,447 boepd).

We are positive on the acquisition, although EPS contribution will not materialise soon.

KrisEnergy made a loss of US$36 million for FY11 and a profit of US$1.5 million for Q1 2012.

Losses could continue for FY12 with higher drilling costs.

The acquisition price represents 1.5 times P/NTA.

It is one of Keppel's largest M&A in recent years following its 28 per cent stake (S$87.5 million) in Dynamac in 2011.

Judging from Pearl Energy's success by the same group of founders, we are more interested in a potential IPO for KrisEnergy.

There are also prospective alliances between KrisEnergy and Keppel's O&M division for the supply of offshore equipment.

Stay invested in Keppel. It is trading at its five-year mean. The rebound in oil prices, stronger O&M order momentum and margins could be a catalyst for its share price.

OUTPERFORM

by Jamie Lee


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