Wednesday, January 13, 2016

Crude Under $30!

Yup, crude oil is now trading under $30! (and dropping)

You don't have to be a genius to figure out that if the oil futures remain at this price tomorrow, the O&G names are going to open red on the SGX as well.

I'm talking about you Keppel and Sembcorp.

My average price for Keppel Corp is $6.426 and I have 1000 shares. (25%)
My average price for SembCorp is $3.445 and I have 800 shares. (10%)

As of right now, I have a combined 35% allocation in these 2 stocks.

If oil continues to be horrible, who knows? Maybe I can enter into Keppel under $5 and SembCorp under $2.50?

Basically, if you don't buy stocks when they are depressed and cheap, when do you buy stocks? When news is awesome and they are trading at all-time highs? Sorry, but that's just not my style guys.

I buy when things are cheap, and I sell when they get expensive. I might not be right all the time, but I think my strategy works much better than compared to doing it the other way around.

Good luck people. Especially to all those over-leveraged and chicken-hearted.

Huat ah! Give me a red, red, sad and depressing CNY!

Everyone sell sell sell!!!


  1. Hi GMGH, which platform/broker are you using to get this chart?


  2. Given Berkshire's recent purchases of Phillips 66, which refines oil and benefits from low crude oil prices, do you feel that you are effectively making a bet against Buffett?

    1. Hi Anon,

      I have no idea what Warren Buffet is doing and I don't see why caring would matter, so I'm definitely not betting against him. Although it would be nice to have big big names backing my position, his purchase of a single company doesn't change my macro outlook or the valuations of the local O&G names.

  3. Just wondering, do you have any ballpark projected or expected time horizon of your investments in Keppel/SCI? You might probably be in it for the long haul...but are you willing to accept say 20 years for the price to break even?


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