Shares & Derivatives
Two new positions for my SRS fund
By Mr. IPO  •  March 3, 2015
I initiated two positions for my SRS portfolio today. 

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)



With many STI Components stocks trading at high PE multiples, oil-related counters seemed like having a "fire sale" right now....
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By Mr. IPO
Mr. IPO graduated from NTU with a Bachelor in Accountancy (Honors) and started life as a lowly auditor. The audit experience not only polished up his accounting skills but also made him very skeptical about the financial records of companies. He always read the financial reports with a huge dose of salt ...
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