I am actually quite positively surprised that based on the announced higher FY14 Final dividend of $0.36/share, Keppel at the last done share price of $8.10 now has a near-term dividend yield of 4.44%.
Assuming Keppel would continue paying an Interim dividend (last FY14: $0.12/share), the derived annual dividend yield would come to high 5.9%. This is very attractive for a proven SG GLC blue-chip!
So it looks like Keppel may be grossly under-priced!
(22-01-2015, 09:53 PM)CCUV Wrote: [ -> ]The cash flow is shockingly poor .....a red flag in my view
Keppel cash flow has been behaving this way all these years. They are able to generate tons of cash but in the end they still need to reinvest the cash back to future projects. As you can see from the stock and work in progress. Oil rig is a high capital expenditure business.
In fact when you see high stock and work in progress maybe it is a good sign that Keppel still able to grabbing up new contracts. You can't blame them on spending money to work on new contracts right.
Well said.
That's why although I know that Keppel is a blue chip stock with strong fundamantal, I still do not dare to dip my finger into it.
( Being burnt badly by other HIGH CAPEX stock before, once bitten twice shy. )
(23-01-2015, 10:19 AM)hongonn Wrote: [ -> ] (22-01-2015, 09:53 PM)CCUV Wrote: [ -> ]The cash flow is shockingly poor .....a red flag in my view
Keppel cash flow has been behaving this way all these years. They are able to generate tons of cash but in the end they still need to reinvest the cash back to future projects. As you can see from the stock and work in progress. Oil rig is a high capital expenditure business.
In fact when you see high stock and work in progress maybe it is a good sign that Keppel still able to grabbing up new contracts. You can't blame them on spending money to work on new contracts right.
(23-01-2015, 10:19 AM)hongonn Wrote: [ -> ] (22-01-2015, 09:53 PM)CCUV Wrote: [ -> ]The cash flow is shockingly poor .....a red flag in my view
Keppel cash flow has been behaving this way all these years. They are able to generate tons of cash but in the end they still need to reinvest the cash back to future projects. As you can see from the stock and work in progress. Oil rig is a high capital expenditure business.
In fact when you see high stock and work in progress maybe it is a good sign that Keppel still able to grabbing up new contracts. You can't blame them on spending money to work on new contracts right.
when the contracts slows from oil price plunge, Keppel will need less WC. then Temasek will want the cash back...or use it for privatising Keppel Land or KPTT (m1)
(23-01-2015, 11:14 AM)Layman A Wrote: [ -> ]Well said.
That's why although I know that Keppel is a blue chip stock with strong fundamantal, I still do not dare to dip my finger into it.
( Being burnt badly by other HIGH CAPEX stock before, once bitten twice shy. )
(23-01-2015, 10:19 AM)hongonn Wrote: [ -> ] (22-01-2015, 09:53 PM)CCUV Wrote: [ -> ]The cash flow is shockingly poor .....a red flag in my view
Keppel cash flow has been behaving this way all these years. They are able to generate tons of cash but in the end they still need to reinvest the cash back to future projects. As you can see from the stock and work in progress. Oil rig is a high capital expenditure business.
In fact when you see high stock and work in progress maybe it is a good sign that Keppel still able to grabbing up new contracts. You can't blame them on spending money to work on new contracts right.
"That's why although I know that Keppel is a blue chip stock with strong fundamantal, I still do not dare to dip my finger into it."
Agree. It's really a "long-term" investment.
it is a funny time to do a privatization especially kc operating weak cash flow and burning another 3b of cash especially when you have problem in the rig business is in my view puzzling......no idea better sit back and watch
perhaps kc needs the cashflow to complete exisitng projects
(23-01-2015, 02:14 PM)CCUV Wrote: [ -> ]it is a funny time to do a privatization especially kc operating weak cash flow and burning another 3b of cash especially when you have problem in the rig business is in my view puzzling......no idea better sit back and watch
they are following SCGlobal footsteps .... listed developer got painful restrictions.