Friday, December 19, 2014

Moving from Airport to Keuro

I am buying more Keuro as I think the lower oil price will cause the construction material costs to lower. Other material costs such as steel is also significantly lower recently. I think it will have positive impact to the construction of West Coast Expressway.


On the other hand, I was not too happy with the purchase of an airport in Turkey by Malaysia Airport. As a result, I have decided to switch by having a bigger exposure to Keuro.

The latest update is as attached.

9 comments:

GL said...

Hi felicity..... Was reading a comment by a reader commenting on the bloomberg article on Meredith Whitney .... which says "Truly gifted investors aren't the least bit interested in self promotion. They're too busy doing important things (like actually reading financial statements and valuing companies)"... and just came across my mind about you. There are so many who started blogs or websites for many reasons we all know (can read the undertone of their articles in i3 etc) ... But you fit just right re the above statement for this. .. Keep up the good work of sharing "selflessly".. Thanks and salute!

AdCool said...

Don't you think that Keuro may take up to 3-5 years before it reports good profit? Construction would require high CAPEX and there would be no earning until they complete the whole highway and start collecting toll.

Isn't it better to invest the available fund to other counters first before switching back to this counter in 2016 /2017? I'm thinking about opportunity cost here.

felicity said...

Hi Adcool Sure that would be perfect. My question is though how sure are we that it would be traded at RM1?

merdeitis said...

Hi Felicity,

You mentioned that Keuro benefits from a lower oil and steel price, but the machinery that they would have to purchase for the highway construction would most likely be priced in USD.

Does the stronger USD not offset the gains from weaker oil and steel price?

Unless the machines have all been purchased. ;-)

felicity said...

Good point on the machineries.

Bn911 said...

Hi Felicty, in case for this near term, KLCI drop below 1500 point, Keuro will be affected as well, drop below RM0.80 is likely, how do u think?

felicity said...

Bn911

sure, in stocks anything is possible

Bn911 said...

Hi Felicity, will u top up more for ur TA? Thanks a lot.

felicity said...

yes, if the price keeps on dropping