"But really, why Keppel, though?"

I've been getting more questions regarding KeppelCorp than I thought, so I thought maybe I'd do a follow-up post.

The biggest one to date would have to be "Why not some other, safer blue-chips that AREN'T dependent on oil or oil rigs? Or ones that DON'T deal with shady Brazilian corporations?"

Fair point, but I bought Keppel but for same reason I took in Singtel when it hit 5.49 - I thought I was buying it at a discount, and I believe the stock price will rise in the future. I'm not expecting the price to head back to $11, but I would expect $6-7 at minimum. Keppel has not failed to pay dividends every year since 2006, I believe, so I took it in for dividend yield.

Oil talks are going to proceed, as far as I know, but I also know that the talks aren't about cutting production. Oil prices have slightly increased this week, and I think that prices should increase overall by the end of March. Demand for gasoline in the US has strongly increased, hopefully increasing demand for oil.

Anyway, short term, an oil production freeze would be the first step to recovery, I feel.

I'm waiting on news regarding Petrobras and Sete Brasil as well. The latest news I've read is that most of Sete Brasil's shareholders are in favour of their company filing for credit protection, because they are hoping for a better offer from Petrobras. It's messy, I know, and it's hard to follow what's going on with the Brazilians. However, as I mentioned in my previous post, I know Keppel has been taking steps to mitigate risk against Brazil, and they've undergone internal talks about a Plan B in case this Brazilian thing falls flat on its face.

Now, it's just a waiting game - one that I don't mind playing.

Singtel and SPH are still holding up pretty strongly. I'm pretty satisfied with them. I would definitely look into picking up more Singtel shares if they hit 3.50 or so again.

Until next time.


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