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ComfortDelGro sinks to 14-year low! Will it go lower? (19 Jan 2023)

ComfortDelGro sinks to 14-year low! Will it go lower? (19 Jan 2023)

On 11 Jan, Comfort (CD) closed at $1.21, the lowest close since 31 Oct 2008. The next day, to the horror of CD’s shareholders, it broke $1.21 with volume expansion and closed at $1.18. At the time of this write-up, CD closed today at $1.14, the lowest close last seen 29 Oct 2008.

This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with a username known as @el15 and has close to 550 followers.

‌Will CD fall more? Or will this be a comfortable trade at current level? Let’s read on for more.‌

Possible reasons to be bullish

A) Still a recovery play

CD with its operations in Australia, China, Singapore, UK etc. should gradually benefit as economies re-open. China’s abrupt easing of its Covid measures will likely facilitate more commuting and travelling in China and outside China.

‌Based on Bloomberg, the consensus from analysts is still projecting CD to post a year-on year (“y-o-y”) net profit growth of 30% in FY22F; 16% in FY23F; 7% in FY24F. Thus, suffice to say that CD is still a recovery play and is likely to post year on year profit growth. Much cannot be said for some companies as they may report a y-o-y drop in net profit in FY23F especially if their FY22F is an exceptional year.‌

B) Valuations are incredibly low; 2.0x standard deviations below its average 10Y P/BV

Based on Bloomberg, CD trades at 2.0x standard deviations below its average 10Y P/BV of 1.9x. With net profit expected to rise in FY22F, FY23F and FY24F (see point A above), it does not seem justifiable to trade at such depressed valuations.

C) Net cash $647m; easily can finance M&A & 5-6% dividend yields

Based on some of the analyst reports which I have read, CD’s balance sheet has emerged stronger after the pandemic. CD has net cash amounting to $647m in 3QFY22 vs $520m in 4QFY21. In other words, 26% of market cap is backed by net cash. Such strong balance sheet should be able to support its dividends and any acquisitions. Furthermore, generally speaking, in a rising interest rate environment, having net cash is better than being in debt.

D) 14-year low price since 29 Oct 2008

During the height of the pandemic, CD traded to a low of around $1.30 – 1.31. At that time, the economy and human traffic come to an almost standstill and plagued with uncertainties on how the pandemic will pan out. It is difficult to see how its operations can be worse now compared to the pandemic. Granted that analysts have cut their profit estimates for CD, the consensus net profit still expects CD to post a 30% rise in FY22F; 16% in FY23F; 8% in FY24F.

E) Total potential upside is around 43% if the consensus is right

Based on Bloomberg, average analyst target price is $1.56; FY23F estimated div yield is at 6.0%. If the consensus is right, CD presents a total potential return of around 43%.

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That One Stock Everyone Was Crazy Over In 2017

That One Stock Everyone Was Crazy Over In 2017

We’re off to a good start to 2018.

But have you ever wondered which was the stock that got everyone crazy over in 2017?

As you already know, we’re a growing community of nearly 50,000 investors strong.

Each and every day, our social network accounts for a daily average of a few hundred posts and a few thousand comments posted by our users. This is a significant surge in the average posts and comments back in 2016. Although the Singapore stock market only operates on weekdays, our social network runs 24 hours a day and 365 days a year.

Looking back at the data from 2017, we were interested to find out from our community activities, if there were any interesting insights.

Let us present some data in our platform:

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ComfortDelGro(C52.SI): Grow or No Grow?

ComfortDelGro(C52.SI): Grow or No Grow?

ComfortDelgro will be announcing its 2Q result tomorrow on 11th August.

This column is written by @j_chou from
@J_chou has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom.

A component of the STI, Comfort Delgro was once championed as a stable dividend paying stock with a strong economic moat. Recent disruptions in the taxi industry have since changed that view, causing the stock to tumble to its 52-week low despite a relatively muted 1Q17 earnings report. Investors were likely concerned with the falling revenue and operating profits, mostly attributed to the decline from the taxi segment. The share price has since recovered slightly from its 52-week low to $2.310, but there is still an opportunity to capitalize on the negative sentiments towards the company. In this article I will look to determine whether Comfort Delgro is ripe for a contrarian play by assessing its long-term prospects from a bullish, neutral and bearish perspective for the next 5-10 years.

Comfort Delgro: Much more than just a taxi company

The distinct blue and yellow taxis that peppers the streets of Singapore may cause investors to mistake Comfort Delgro as primarily a taxi company.

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Can Comfort DelGro regain its customers of taxi service?

Can Comfort DelGro regain its customers of taxi service?

ComfortDelGro Corporation Limited is a Singapore-based investment holding and management services company. It operates in eight segments:
1) Bus & bus station
2) Rail
3) Taxi
4) car rental and leasing
5) automotive engineering services
6) inspection and testing service
7) driving centre and
8) insurance broking services and outdoor advertising.

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