Tuesday, September 24, 2013

Seeking Alpha: Keppel's Collected Parts Are Undervalued

I'll say it right up front - researching, valuing, and owning Singapore's Keppel Corporation (KPELY.PK) is going to be more of a headache than some investors want. This large conglomerate not only operates a huge rig-building shipyard and power/gas infrastructure business, it also owns sizable stakes in numerous listed companies, including Keppel Land (KPPLY.PK) and K-REIT. If that weren't enough, the government-owned investment company Temasek is a major holder of Keppel shareholders and quite a lot of Keppel's projects ultimately involve dealing closely with the government.

Despite those risk factors and/or drawbacks, I'm bullish on Keppel. While the company's shares took a big step down during the global recession, the company has a long-term history of building shareholder value. With the company still looking forward to significant rig orders and owning a majority stake in a premier Asian property developer, I believe Keppel is a solid, undervalued, income-generating stock trading about 20% below its fair value, and a stock that is capable of being a core holding for those looking to add international exposure.

Please read more here:
Keppel's Collected Parts Are Undervalued

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