Keppel Limited

[henryjohn]

Think it is quite obvious now that Oil and Gas cycles have peaked at USD110 last year. As the saying goes, we would not know the Oil & Gas cycles has peaked until it has passed us. Fundamentals for Keppel Corp have definitely turned for the worst with expectation of lesser new contracts and lower margins for any new contracts for 2015 & 2016. This year earnings of Kepcorp could drop 30% to 50% over 2014 earnings. My 12 months' fair value for Kepcorp is $7.30.

As usual, Caveat Emptor applies.