Why I Invest In Keppel Land

Recently, I’ve sold off my Ezra and planned to move my money into a fundamentally safe stock to hold for a long time. I’ve been scanning through lots of stocks and I have a huge list with me. Once my target price is hit, I’ll make my move.

I believe right now is the best time to invest. We all can see that US Dow Jones is hitting record high. After government announced tapering plan for 2014, Mr Market welcomed it by allowing the market to shoot up.

Dow Jone 5 Year ChartFrom the above chart, Dow Jones is already highing record high, crossing the mark of 14,500! The economy has recovered, government is removing the financial help, and the people are happy.

However, what’s happening to the Singapore Market? Let’s have a look.

STI Chart

Singapore STI has not been performing as well as US or Japan market. In fact, it’s about 10% off the peak of 2013. If you look at the bright side, STI will correct itself soon, following the US market in the coming 2014. So right now, it’s a good time to invest in Singapore Market.

So which company to invest? Some of my criteria will be:

  • Stable dividend – Giving dividends every year
  • Low PE Ratio – Less than 10
  • Low PTB – Less than 1
  • 52-Weeks-Low Stock price – High chance of recovering

I’ve found a few good stocks, but decided to go with Keppel Land. Let’s have a look at Keppel Land’s performance.

Dividends

Keppel Land DividendsFrom the chart above, you can see the past 5 years dividends of Keppel Land. It’s been rising consistently, except for 2013. I believe Keppel Land still has the potential of giving good dividends, and despite the drop this year, the yield is still pretty attractive at 3.6%.

Other Factors

Keppel Land DataFrom the list above (screen shot from Bloomberg), you can see the PE Ratio is amazingly low – 6.05!

Looking at the PTB – 0.8099, it’s way undervalued right now. I believe Keppel Land’s stock price is pushed down together with the REITs, and once the market tuned back to sync with US market, this stock will shoot up fast.

I decided to hold some Keppel Land stocks since the prices are quite attractive.

Keppel Land Stock Price (Dec 13)It’s near to 52-weeks low, with the upside of more than 25%. I’m entering at $3.37, and happy if the stock can hit $3.7. I’ll sell to cut lost at $3.10, accepting a 10% lost.

So what’s your take about Kepland? I’ll like to hear about it in the comments below.

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