Showing posts with label ComfortDelGro. Show all posts
Showing posts with label ComfortDelGro. Show all posts

Jul 10, 2021

Cory Diary : Comfort Delgro



Covid-19 hits Comfort Delgro badly. Basically the company has to reduce their dividend significantly. Maybe too much, resulting large cash currently. Before the Pandemic, most of the Revenue is in Public Transport however quite an amount of profits do comes from Taxi operation. Their dividends have reached their peak way before Pandemic. A hint of competition ?

Most revenue comes from Singapore follow by UK/Ireland. Rest of the countries are not seeing significant growth. In year 2020 till now the company has a lot of support from the government that basically cover their losses and we know this support will be reducing as we move past vaccination phase. 

In the new Normal, I think Transport Operation will not be same again. There is also a lot of WFH leeway provides by many companies. Is it obvious they have to scale down their operation ? Unfortunately their oversea market doesn't seems moving. 

Continuing to give good dividends without a good support on earning is like cashing out and unsustainable. No doubt their cash level can sustain the company for a period. However from dividend yield or growth perspective, neither looks exciting for years to come unless they manage to ignite their businesses which so far doesn't looks like it will.

With limited cash, do we want to lock-up cash here when we can have Giant Chinese Tech companies on the low ? Another question is transportation a worthy recovery play vs other contenders ? Maybe there is other type of play but likely not my cup of tea.

Just me thinking out loud. Pls DYODD. 


Cory
2021-0710

Not Vested. At least not yet.
Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

Jan 19, 2018

Cory Diary : Comforting or not

Have been monitoring ComfortDelGro for a while but never in it for long term investment. Reason being simple. The competition is keen and they are cutting at each other throat. A lot of blood. I have a lot of concerns. Nevertheless I got some when it got near $2. However after reading their earning report, I think Oil price matters.

News : ComfortDelGro and Uber launch UberFLASH services in Singapore

When today news is out on the tie up with Uber, I decided to sell my shares which I bought for 2.8% profit. Just a little kopi money and for my concern of the creeping oil price. Don't get me wrong. This is still a good company but timing seems not right now. If the price continues to go up, good for them and shareholders. And I will just have to keep looking.


Cory
19 Jan 2018