Keppel    Last:7.42    -0.02

keppel Corp

On Friday, Kepcorp re-test $11.04 resistance and closed at $10.78 with LOW volume of 2.39 million shares traded.

A black candle stick with little lower shadow indicates that prices remain supported at $10.78.

Both RSI & MACD are flat as RSI trend sideways.

Important Resistance of Kepcorp: $11.04

Immediate Support of Kepcorp: $10.78

Currently prices are supported by 20 days MA at $10.78

Kepcorp has been testing the 30 months old critical resistance at $11.04 for the past weeks but failed to breakout till now.

In fact, bearish MACD divergence has been spotted in the charts (MACD falling while prices rise)

However prices are now forming a bullish “ascending triangle” with “higher low” and “higher high”

SEE ANALYSIS FOR SEMBMAR


Regardless we do not advise buying kepcorp till prices can breakout of $11.04 resistance at high volume.

 

Petobras Mammoth Tender bid to be announded by end of this month. Load up or be left out .

 

Oil, just $75 a barrel two months ago, rocket past $90 which raises the specter of $3 a gallon gasoline for at least the next two months.

The factors which have driven prices higher are not likely to go away and may get worse: the value of the dollar, Chinese crude consumption, and the chance of a very cold winter in the northern hemisphere.

The American Petroleum Institute recently said that stockpiles will likely continue to fall in the US.

As was true in 2008, speculators who anticipate a drop in supply and a possible drop in supply from OPEC could push prices much, much higher. OPEC ministers say that their nations cannot make money unless crude is well above $70. They may use the current spike to refill their treasuries which were depleted when crude fell below $40 early this year.

Due to the rise, the traffic on the nation’s roads may be a little light this Christmas. Gasoline prices have spiked up and are well above $3 on the east and west coasts.

The average price for regular gasoline at U.S. filling stations rose 3.92 cents to $2.9121 a gallon,the Lundberg survey reported according to Bloomberg. “What we’re seeing is really just the tip of the iceberg,” Trilby Lundberg told the news service today in a telephone interview. “At the retail level, we could see another six to eight more cents” per gallon as refiners pass through higher crude costs.

People who normally get a piece of coal in their stockings will get a gallon of gas this year instead.

24/7 wall street//



 

 

What other says .....................

 

 Keppel Corp (KEP SP, $10.92, BUY, TP $12.30), Sembcorp Marine (SMM SP, $5.08, BUY, TP $5.40) – Petrobras recently revealed the price bids for several massive tenders for deepwater drilling rigs. We believe that both Keppel Corp and Sembcorp Marine (SMM) are in a good position to secure contracts for their bids for the 28-rig package, which would add around US$5.1b to each of their orderbooks. Maintain BUY on Keppel and SMM.

/kim eng/

 

 

 

I don't know what to say.

This stock suppose to be less volatile in the past in term of volume.

1100, one tough resistance to convincing crossover in short term.

enghou      ( Date: 03-Dec-2010 18:44) Posted: Technical Comment from The Edge Chart pattern looks like a rectangle, which is a continuous pattern, gaining relative strength. Near term support at $10.50. Short term resistance at $11. No signs of downtrend yet. Wish everyone here a nice weekend

 

 

 

Technical Comment from The Edge

Chart pattern looks like a rectangle, which is a continuous pattern, gaining relative strength.

Near term support at $10.50. Short term resistance at $11. No signs of downtrend yet.

Wish everyone here a nice weekend 

 

Singapore’s Keppel gets $472.4m contract for 2 jackups

Singapore’s Keppel Corp (KPLM.SI), the world’s biggest oil rig builder, said on Thursday it has signed a deal to build two jackup rigs worth US$360 million ($472.4 million). The contract with Asia Offshore Drilling, a 49% affiliate of Singapore-listed Mermaid Maritime PCL (MMPC.SI), includes an option to build two similar rigs. The two rigs are scheduled for delivery in 2012 and 2013.

Jack Up Rig

 

Kim Eng recommend a BUY with Target Price of $12.30

 Strategy 2011 – Hot money will continue to flow. Interest rates will remain low. Against this backdrop, our strategy in the new year is to identify companies that are able to capitalise on their financial strength to buy growth. We pick seven daring plus-size shoppers that will justify further re-rating, not just because of their proactive pursuit of M&As and corporate restructuring, but also because of their potential to generate value for shareholders.


-  Singapore Exchange (SGX SP, BUY, TP: $11.00)
-  Noble Group (NOBL SP, BUY, TP: $2.58)
-  Olam International (OLAM SP, BUY, TP: $3.88)
-  Keppel Land (KPLD SP, BUY, TP: $5.60)
-  Keppel Corp (KEP SP, BUY, TP: $12.30)
-  SATS (SATS SP, BUY, TP: $3.48)
-  Fraser and Neave (FNN SP, BUY, TP: $7.08)

Make love more, don't make more enemies 

 

Nomura raises Keppel target to $13.10; keeps Buy

WRITTEN BY DOW JONES & CO, INC

THURSDAY, 02 DECEMBER 2010 10:39

Nomura raises Keppel Corp. (BN4.SG) target to $13.10 from $11.00, reiterates Buy; says firm “primed to benefit from pick-up in jack-up rig capex...being the market leader in their design and build in the 2005-mid-2008 boom.”    Expects aging, low-spec rigs to increasingly be retired, given divergence in demand toward relatively small, busy fleet of high-spec jack-ups.    Notes Keppel’s Brazilian yard Brasfels “currently the most viable shipyard in Brazil...likely to secure a good share of Petrobras’ 28-rig tender.”    Raises forecasts, valuation for infrastructure division on recently announced Singapore cogen plant expansion; adds property “key beneficiary of the positive leasing momentum in Grade A offices.”    Target price (5% discount to SOTP) implies 23% upside. Notes FY11-12F P/Es of 15X, 14X compare with historical range of 7X-22X, while “dividend yields of 3.5% are attractive relative to peers.”    Shares flat at $10.96.    /theedgesingapore/icameireadipostedfyionly/

 

OCBC overweight O&G service sector; Tips Keppel, SembMarine

WRITTEN BY DOW JONES & CO, INC

THURSDAY, 02 DECEMBER 2010 12:09

OCBC expects oil & gas companies with expertise in deepwater production to fare better vs those limited to shallow waters in 2011. “The demand for premium deeper water jack-ups has returned, and Keppel Corp. (BN4.SG) and SembCorp Marine (S51.SG) are likely to see more of such high-spec orders.” Says push for even more technical assets likely to continue, benefiting companies that do not scrimp on R&D, outlook for smaller offshore support vessels (anchor handling tug supply vessels, platform supply vessels) dimmer than construction vessel segment, given oversupply situation; “however, charter rates of larger and more sophisticated supply vessels are expected to be more resilient given still relatively healthy demand and fewer vessels available.” Keeps Overweight on sector, says oil prices likely to remain high enough to sustain capex while financing still improving. Preferred picks: Keppel, Buy, $12.50 fair value, SembCorp Marine, Buy, $5.70 fair value. /theedgesingapore/icameireadipostedfyionly/

 

expensive stock difficult to find retail investor looking at it short term....

bsiong      ( Date: 30-Nov-2010 10:06) Posted: Keppel Corp- Technical Analysis   Keppel Corp stock established sideways action after hitting resistance at 11.06 on November 11. The lower confine of the congestion is located at 10.40. It takes a decisive close above 11.06 to generate upside follow through buying pressure within the major bull run. Initial target would be near 11.70. Mid-term the stock could see gains towards 12.10-12.50. A breach below key support 10.40 on the other hand would confirm an extended counter-trend correction towards around 10.00.   DB Warrants Team   /icameireadipostedforYourInfoOnly..this is not an invitation to trade...

 

 

DB Warrants Team

 

/icameireadipostedforYourInfoOnly..this is not an invitation to trade...

 

 

OCBC Investment Research lifts Keppel Corp. (BN4.SG) target price to $12.50 from S$11.22 after increasing FY11 earnings estimate to reflect firmer prices of new jack-up rig projects, accounting for latest market values of conglomerate's listed entities. Keeps Buy call.

 

Keppel Corp-------------------------------------------------------------------- Maintain OUTPERFORM by Credit Suisse

 Secures jackup order worth US$180 mn from Standard Drilling

 Keppel secured an order for a jackup rig worth US$180 mn from

Standard Drilling. The contract includes options to build another two

jackups, which will bring the total contract value to US$550 mn if

exercised. The contract would bring Keppel's YTD order win to

S$2.6 bn (including LoIs for two jackups with Mermaid Maritime),

achieving 87% of our FY10 forecasts of S$3 bn.

● Management noted that margins for the contract are expected to

"meet group requirements". However, financing terms have

deteriorated, with only 20% downpayment required and the

remaining payment due on delivery.

● We believe this contract supports our view of a cyclical recovery in

the high-spec jackup market. We note that: 1) returns of 12.3% on

jackups remain above long-term average returns of 10.9%.

2) financing costs have come down to 5-6%, and 3) utilisation

rates are close to 100% for high spec jackups.

● We maintain our OUTPERFORM rating on Keppel and our target

price of S$12.10. On a 2011E P/E of 13.2x, Keppel trades at a

13% discount to its historical average.

 

Make love more, don't make more enemies 

 

Keppel Corp BUY S$10.78; Price Target: S$11.30; Bloomberg: KEP SP
Secures newbuild jackup contract from Standard Drilling;
By: Janice CHUA +65 6398 7954 / Jeremy THIA +65 6398 7974


Keppel Corp secures newbuild jackup contract from Standard Drilling; BUY S
$10.78; Price Target: S$11.30

Keppel Corp has secured an order for a newbuild jackup rig, with options
for another 2 from Standard Drilling Ltd, a subsidiary of Ferncliff TIH AS
Group, a Norwegian investment company.

The first unit is worth US$180m, and should the 2 options be exercised,
this will bring total contract value to US$550m (i.e. US$185m for each
subsequent unit).

The first unit is scheduled for delivery in 2H 2012, and will be built
based on the KFELS B Class design, allowing for operations in water depths
of 400 feet with drilling depth of 30,000 feet, and accommodation for up to
120 men.

This order brings YTD order wins to S$2.3bn vs. our full year order wins
assumption of S$3bn, and further confirms the pick up in demand for premium
jackup rigs. Indeed, we expect Mermaid to finalise the contract for 2
newbuild KFELS B Class jackups with Keppel soon, given the recent
successful share placement in Asia Offshore Drilling.

Maintain BUY with TP S$11.30

/dbsV/

/icameireadiposted FYI only - this is NOT an invitation to trade.///

 

 

	26 Nov 2010 Singapore
Keppel Corporation Ltd
Quick takes - Accelerating order wins - by Lim Siew Khee
(KEP SP / KPLM.SI, OUTPERFORM - Maintained, S$10.78 - Tgt. S$13.00, Conglomerates)
KepCorp has secured a US$180m order for a high-spec jack-up from Norwegian investor Standard Drilling with an option for two more units. This brings its YTD order wins to S$2.7bn vs. our S$3.5bn target. We raise our order-win assumptions from S$4bn to S$4.5bn for 2011-12 on the back of accelerating orders fuelled by the return of more asset speculators in the rig-building segment. Our earnings estimates have been raised by 1-3% for FY11-12. Our new target price of S$13.00 is still based on sum-on-the-parts valuation, taking into account our earnings upgrade and a higher P/E of 18x for O&M, representing mid-cycle valuations (from 15x historical average). A stronger order momentum is the key catalyst, in our view.

/icameireadiposted FYI ONLY/ 

 

Buzzoff      ( Date: 25-Nov-2010 20:47) Posted: Another good news from Kep Corp... Keppel wins US$180 mil KFELS B Class jackup rig contract from Standard Drilling Singapore, 25 November 2010 - Keppel FELS Limited (Keppel FELS) has secured an order for a KFELS B Class jackup rig worth US$180 million from Standard Drilling Ltd (Standard Drilling), a subsidiary of Norwegian investment company, Ferncliff TIH AS Group (Ferncliff). As part of the agreement, Standard Drilling has been given options to build another two similar jackup units. If exercised, the options for the additional two rigs will bring the total contract value to about US$550 million. The first rig is slated for delivery in 2H 2012. Mr Martin Nes, CEO of Ferncliff TIH AS, said, “We are seeing activities and opportunities in the jackup market recovering quickly and are positive that this demand for newer, safer, high-specification jackups will be sustained, given the growing need worldwide for premium units with capabilities to operate safely in more challenging locations. “To create stable and long-term value for our stakeholders, we believe in working with partners with specialist expertise, good management and world leading technology, to develop our assets that will give a good foundation for future growth. “Rigs built to the KFELS B Class design are known to be highly efficient drilling platforms with industry-leading features for safety and environmental friendliness and boast a proven track record. We are pleased to work with Keppel FELS on building a premium jackup drilling rig of this design, which we are confident, will become a first class asset to our portfolio.” Mr Wong Kok Seng, Executive Director of Keppel FELS, said, “The innovative and cost effective KFELS B Class jackup rig has proven itself to be the trusted, reliable workhorse of the industry, and has performed well in major offshore exploration and development programmes in various locations. “Including Standard Drilling’s order, a total of 35 KFELS B Class rigs have been ordered to date. 32 of these have already entered the market and are constantly delivering excellent operational and safety performance for their operators.” Developed by Keppel’s technology arm, Offshore Technology Development, the KFELS B Class jackup design provides maximum uptime with reduced emissions and discharges. For its environmental-friendly features, the KFELS B Class design was bestowed the Prestigious Engineering Achievement Award from Institution of Engineers Singapore in 2009. Readily upgradeable to higher performance capabilities, KFELS B Class rigs incorporate Keppel’s advanced and fully-automated high capacity rack and pinion elevating system, and Self-Positioning Fixation System. When completed, this rig will be able to operate in water depths of 400 feet, drilling depth of 30,000 feet and accommodate 120 men.