I am currently tracking a few stocks. Each has some level or underlying themes to back it for the next macrotrend. The global spectre of a crisis is looming while interest rates are probably going to rise in September.
Personally I am considering Keppel Corporation and Starhill Global Reit deeply. This will be purchases for a long term perspective of at least 5 years and I would like to add to this positions over time. In the meantime, I am waiting for attractive opportunities. Here is some that I see on the Singapore Market.
1. OUE Limited (2.16)
- OUE C reit and OUE H trust allows for capital recycling and investment in better assets
- Expected > 5% dividend p.a.
- P/B at close to 0.5
- Urbanization theme
2. Keppel Corp (8.78)
- Triple crown trust structure allow for Build-Operate-Stabilize-Inject model (Keppel Reit, K Infra Trust and Keppel DC reit)
- Expected >4.0% dividend p.a.
- Potential logistics trust
- Yield accretive deal and value buyout of Keppel Land
- Underlying macro theme of urbanization, energy and infrastructure.
3. Sembcorp Marine (3.00)
- Turnaround in oil prices will allow for return of oil rig deals
- Busy docks till 2019
- Energy theme
4. Vard Limited (0.62)
- Innovative design and synergy with parent may allow for more deals to come in the future
- Energy theme
5. Starhill Global Reit (0.86)
- Deal accretive acquisition of Prime CBD mall in Australia
- Optimizing capital structure at 0.35 leverage
- NAV: 0.93 provides some upside
- Asset Enhancement Initiatives allow for a potential upside (think more leasing space)
- Urbanization theme
6. Keppel DC reit (1.04)
- Basic bread and butter for the future data industry
- 6.12% return
- Big data theme
7. Starburst Holdings (0.55)
- Strong Profit Margins
- Scalable model
- Defence industry/theme
