The week started with Temasek Holdings making the biggest news splash.
On Monday, the sovereign wealth fund offered to take majority control of Keppel Corporation Limited (SGX: BN4). Shares of the conglomerate rose by over 14% in response and ended the week higher by 18.3%.
Interestingly, Sembcorp Marine Ltd shares (SGX: S51) rose 6% throughout the week, as rumours swirled around a possible merger between Keppel Corporation and Sembcorp Marine.
Could the two rig builders come together? You could certainly make a case for it, given that oil prices have been in the doldrums since 2014.
Even so, the revelation should not make Sembcorp Marine will be a good investment right now, in my view. At the moment, what we have is a guess on what might happen (or not) with a binary outcome.
Investing based on what may or may not happen isn’t the smart thing to do.
And what about Keppel Corporation? Is the conglomerate is worth the $7.35 that Temasek is offering? Chin Hui Leong (let’s call him Chin) breaks down the pros and cons for the deal.
As Temasek’s offer dominates the news cycle, it pays to keep focused on finding the best companies out there on offer.
This week, Royston Yang delves deeper into the value side of his ValueGrowth strategy by sharing his criteria for finding a great dividend stock.
And he went a step further by pointing out three companies that fit his criteria, two of which he owns personally. If you want to find out more, head here:
Meanwhile, there is a growing trend that is happened quietly in the background.
The world, as a whole, is ageing with 22% of the population expected to be 60 years and above by 2050, up from 12% in 2015. The implications of this trend are far-reaching, and could lead to changes in how governments view contentious topics such as immigration.
Meanwhile, new industries could be born to increase productivity in how we deliver healthcare to the masses that need it. Check out Chin’s article below.
A hearty thanks to all our readers. We are in the early days of getting started at The Smart Investor and like our investment horizon, we plan to be here for the long run.
None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Disclosure: Chin Hui Leong does not owns any of the shares mentioned.