Sembcorp Industries
I have been contemplating this counter since last week and was weighing the probability whether oil prices will "crash" further with Citi predicting it will fall to the $30 region.
I bought 2,500 shares at $4.28 eventually and will spare you the details of how the price ran away from my various price queues ^_^
The key reasons for buying:
- reasonable valuation of less than 10x PE Mulitple
- stable utilities business giving a decent yield of ~3.6%
- bet that oil prices have stabilized
Given its significant exposure to Sembcorp Marine, any further crash in oil prices will be disastrous. The picture below shows the various multiples at the point of acquisition (for my future reference)