I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



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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

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Tuesday 14 September 2021

20 yrs ago Kep Corp in 2001 and Keppel Vision 2030.

 20 years ago in Sep 2001; Uncle8888 believe and bought into Keppel's restructuring story in Round 1 @ $1.32 after Sep 11 WTC when market crash and Keppel made money as No 1 Oily company!

20 years later; Keppel became smelly, oily stock and most hated and has to shake off the smelly and oily business with its Keppel Vision 2030. Again; Uncle8888 still believe and now at Round 101 i.e. 100 rounds more than in 2001! LOL!

Average 5 rounds P.A over 20 yrs!

Read? Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (15)

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Sunday, 25 September 2016

Read? You Are Stupid To Lose Money In Your O & G Investment! Blame Yourself For Stupidity!

In Aug 24, 2001

Promising Conglomerates Still Struggle in Singapore

By Richard BorsukStaff Reporter of The Wall Street Journal

Aug. 24, 2001 12:01 am ET

SINGAPORE -- Two state-run Singapore conglomerates have each developed a more attractive story to tell potential investors than what was offered several years ago, but they still aren't receiving reams of rave reviews.

Keppel Corp. and SembCorp Industries are getting more attention than they did during the late 1990s. As well they should, since the two sometime-competitors look significantly different and better than they did during the 1997-98 Asian financial crisis. Many investors avoided the two complex holding companies, often seen as proxies for "Singapore Inc." The unhappiness stemmed from low rates of return, a result of inefficiency and high-cost diversification and expansion from their colonial-era roots in shipyards and engineering.

A series of restructuring and pruning moves has led some analysts and fund managers to regard the diversified companies in a more favorable light. They were pleased last year when SembCorp, whose five core businesses are utilities, engineering and construction, environmental engineering, logistics and marine engineering, sold off its Delifrance chain of French-style patisseries. Meanwhile, Keppel reduced its number of units and untangled a web of crossholdings involving several listed subsidiaries.

While the respective revamps have won the companies some fans, their share prices have at times languished. Interest in the companies was neither sustained nor broadly based. Many Singapore analysts have "buy" or "outperform" ratings on one or both at present, often based on the belief that there's hefty value left to be unlocked. They contend shares of Keppel Corp., which began its restructuring later, can reach about 4.25 Singapore dollars (US$2.43) in the next year. On Thursday, Keppel closed unchanged at S$3.32.

But some fund managers say that, while they welcome change at the two conglomerates, they don't like the odds for a significant rise in their share prices in coming months because they don't foresee short-term gains for equities battered by global markets and the grim outlook for trade-dependent Singapore. After growing 10% last year, Singapore may see its economy shrink in 2001.

Even when economic conditions improve -- boosting some of the infrastructure, property and other businesses that either company is in -- not everyone will stock up on the conglomerates; chilly market sentiment still lingers. Hugh Young, managing director of Aberdeen Asset Management Asia, says they and most Singapore companies are making gains in seeking ways to boost shareholder value. "But we still prefer companies with focus and specialization" rather than diversified interests, he says.

In recent months, Keppel Corp. has moved to both tap locked-up value and to respond to complaints that the holding company doesn't have clear core businesses. It sold its 37% stake in banking arm Keppel Capital Holdings to Oversea-Chinese Banking Corp. , generating an exceptional profit of S$800 million. Keppel Corp. also announced its intention to privatize its listed oilrig unit, Keppel FELS Energy & Infrastructure, making that one of its core operations. In addition, a capital-reduction program will pay shareholders 50 Singaporean cents a share.

Keppel Corp.'s moves and first-half results -- profit rose 21% -- have gotten mixed reviews from analysts. "Restructuring has only just begun" was the title of a bullish note from SG Securities. Its Singapore research chief, Foo Jou Min, calculates S$4.30 as Keppel Corp.'s "breakup value," which means that at current levels the stock can still be considered undervalued.

On the other side, the first-half results led G.K. Goh Securities to downgrade Keppel Corp. to "hold" from "buy." Having sold its banking interests, the holding company now "lacks strong earnings drivers" in the short term, the brokerage firm said.

Analysts agree that SembCorp has found a new driver for earnings, as its utilities division provides power to an increasing number of chemical and other customers on Singapore's Jurong Island. Utilities "is going to be the star as we move on," Chief Executive Wong Kok Siew said last week.

But growth in the energy business will come at a cost, most analysts say. They expect SembCorp will need to raise more cash in 2002, which will increase its debt load. A report by Merrill Lynch, which is "neutral" on SembCorp, says fundraising looks inevitable. One fund manager calls that expectation "a sword hanging over SembCorp." But Salomon Smith Barney rates the stock "outperform" and has set a price target of S$2.20 in the next year. On Thursday, SembCorp rose two Singaporean cents to S$1.61.

Overall, analysts say changes made so far at both Keppel and SembCorp should be applauded. However, in part, because equities in general seem out of favor, "the market isn't rewarding the conglomerates for their restructuring," says Sim Chey Hoon, an analyst at Merrill Lynch.

Another Singapore-based analyst says he believes that even if the conglomerates had done a highly impressive restructuring job, they still would be shunned. Experiences in many countries have left investors "with a feeling that few conglomerates in Asia produce high rates of return," he says.

4 comments:

  1. CW,

    Its like comparing the driving skill of someone who just drives to and from work daily, and those who drives 12 hours one the road in a taxi ;)

    Now compare someone who bought and held Keppel for 20 years, versus your average 5 trading around a core position rounds 1,2,3 per year for the last 20 years!!!

    Who got the edge?


    Well, this is not the first time Keppel is "restructuring"...

    Keppel's vision 2030 is only 8 years away. If it succeeds, you got your 2 to 3 baggers from today's price all over again :)

    Good luck!


    At least Keppel is in a better position than SPH...

    People buy SPH for its monopoly press position.

    Imagine things got so bad it had to sell away all media businesses to remain viable!?

    Can anyone imagine Singtel divesting all its telecoms businesses to transform itself into a property play?

    Investing is hard!!!

    ReplyDelete
    Replies
    1. Waiting for SPH shareholders to vote Yes!

      Delete
    2. Good idea Smol!

      Waiting for singtel to become 5G reit like American Tower or Crown Castle.

      Too bad S'pore laws won't change anytime soon for ganja reit lol.

      Delete
    3. Spur,

      I like your "anytime soon" ;)

      When China stocks were the rage everywhere, we spread our legs wide. Then we got STDs...

      Gambling and casinos are OK just as long we call it "Integrated Resorts. Wink, wink. Look! Others are doing it, we must too! If not kenna left out!

      We also allowed Dual Class listings in SGX? Its OK, its not so bad to be 2nd class shareholders lah... Trust! Too bad the billion dollar Manchester United IPO got away...

      Soon SPACs may be introduced here even after what happened in US... Let's see if they allow CPF members to invest in SPACs? Better don't! Wait Hong Lim Park become crowded. How about only to institutional and accredited investors only? But how to make money without bei kambings???

      Then there's my personal favourite! Big daddy linked bank CEO dissed on cryptos in the past. But roti=prata very fast when there's money to be made! Now moving fast to have own crypto exchange. If we can't beat them, join them?


      Yup, when ganja is legalised in more countries, and especially if any of the other Asian bourses appear to be interested, I won't be surprised that ganja reits will be listed in Singapore in double quick time!

      Eh... Just spin the when the facts change, we change!

      My bad. Ganja is a medicinal herb after all!

      LOL!

      Delete

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