Sembcorp Industries announced its Q1 2017 earnings on 3 May 2017 and the results announced were good: revenue, net profits as well as earnings per share have improved. Sembcorp Industries has a 61% stake in Sembcorp Marine, its offshore marine division. After the announcement, both Sembcorp Industries stock and Sembcorp Marine stock rallied on 4 May 2017 with a 5% gain for Sembcorp Industries stock and a 9.1% gain for Sembcorp Marine stock; trading volumes were high for both stocks, indicating bullishness among investors.
While some might have think that the good results were the drivers for both Sembcorp Industries and Sembcorp Marine stock, I myself have a different take. Ever since oil prices went low, I have always been thinking that one day, there could be a possibility that Sembcorp Industries might take Sembcorp Marine private. Sembcorp Marine, once a good blue-chip stock is now trading at just …Read the full article →