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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