Sembmarine: Feeling lucky?

“Do I feel lucky?”

If you do,  

In a report last week, UOB Kay Hian raised Sembmarine’s target price to 13 cents, citing new order wins in oil and gas and renewables, and the potential upsizing of the company’s capabilities following a merger with Keppel O&M.

It added that, based on a five-year price-book ratio of 1.1 times, the stock prices should be 14.3 cents; while a 10-year price-book average of 1.5 implies a stock price of 18.9 cents.

https://www.straitstimes.com/business/companies-markets/stronger-global-player-with-merger-of-om-unit-and-sembmarine-keppel

Fyi, I bot a tiny amount before the shares went ex-rights last year and then applied for a lot of excess rights shares at 8 cents.

In case you don’t know, a merger of Keppel O&M and Sembmarine is being worked out.

Finally Temasek has gotten its way on the merging of Keppel’s and Sembcorp’s offshore marine businesses. Since the recession in the 80s, it’s been trying but Keppel wanted to be top dog because its rig business was bigger and better. Sembcorp didn’t want to lose face.

Now Keppel wants to get rid of the business and Sembcorp cut loose Sembmarine last year. Sembcorp shares are flying. Expect Keppel’s to do the same. I also got Keppel shares.

Touch wood.

Time to make an offering to the deities.

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