Of Bulls And Bears

Keppel Corporation (BN4) is one of the few best known STI components even to non-investors. Its stocks have plunged thoroughly since its glory days, to price levels last observed in the 2008 tough economy. Its dividends produce has also lowered to a low 3% this year. This can either signal a great discount or a huge warning sign. While Sembcorp’s assets and income are mostly centered on Utilities, Keppel Corp’s key profits and possessions originated from its Property sector mostly.

Nevertheless, both conglomerates are well known of its sea sector, which has performed lately unpleasantly. I’ve earlier rated Keppel Corp at 8.5/10 in another post with limited details shared. Upon reading the recent 2Q 2017 financial reviews, I made a decision to give Keppel Corp a deeper dive. 1. The Group’s debts has now risen somewhat in 1H 2017. The Group’s gearing has increased by 0.02 to 0.since Dec 2016 58, attributed by a slight upsurge in Total Liabilities and a slight decrease in Total Equity/ Net Assets. 2. It had been noticed that there are numerous negative figures found in the recent financial report.

Profit wise, Q2 2017 was a poor quarter for Keppel Corp (-29 indeed.4%) while overall 1H 2017 has performed flat (-4.5%). 4. Keppel Corp’s property section has added to 47% of the Group’s Net Profit. With this notice, Keppel Reit may be a better investor’s choice due to the improving market and sentiments situation. Despite the marine segment being the second largest asset base of Keppel, it has contributed to a net loss when compared with the two 2 smaller segments Infrastructure and Investments. 5. Keppel Corp is vastly focused in Singapore despite its varied business design. Around 51% of its non-current assets are from Singapore, which really is a risk factor to consider as well. 6.40. NAV is a guide just, there are many other things to consider. It might be easy to build up some shares below this price but the ultimate question is : Will its NAV fall even further in the coming years?

Almost 90% of these transactions involve the U.S. That is because of the size of the U.S. U.S. currency as a store of value, and the worldwide prices of oil in U.S. Exchange rate movement is determined by volatile replies to short-run factors and smoother long run factors highly. An initial determinant of long-run exchange rates is the relative price levels between two countries.

  • Proposed asset allocation (e.g. 80% stock, 20% bonds)
  • $100 x 5 percent x 1 year = $5
  • Use case feasibility
  • Get a fresh car etc
  • Median Property Price: $147,408

In other words, if one country comes with an inflation rate that is different from another nationwide country over long periods of time, we can expect the exchange rate to regulate. 1 in america should cost 120 in Japan. 2. In the exchange rate above, a pack of gum in Japan, at 120 is half the price of gum in america now. Everyone would buy cheaper Japanese gum.

60 , or the dollar depreciates. Now gum is the same price in both the US and Japan. The example above offers a theory of how exchange rates are related to the price level. U.S. prices rise more slowly than other countries (lower inflation) then your US buck will appreciate.