Tuesday, January 13, 2015

2015 Portfolio Changes: Added Keppel Corp (13 Jan)

Recently, I posted my mistake for trading done on Keppel Corp, and have been trying to accumulate my war chest since. With the oil prices declining below $50, the market is again feeling depressed with the Oil &Gas industry. I have added Keppel Corp today @ $8.17.

The reason for my investment are as follows:
  • I think the possibility for "long-term" oil price recovery is quite high.
  • At my entry price of $8.17, historical yield is more than 5%. This satisfies my yield income investing criteria for a strong fundamental company with economic moat and consistent dividend history
  • Many retail investors favour SembCorp over Keppel Corp due to the former's uitility business which is deemed more stable in terms of earnings. However, as I am already holding CitySpring for uitility exposure, I think Keppel Corp will be able to diversify my portfolio.

I am not sure if Keppel Corp will rebound or head lower from here, but am now better prepared to treat it as part of my income-investing portfolio.

No comments:

Post a Comment