yjlim avatar
Rank sm
572
Posted by: yjlim 8.85 K

$ComfortDelGro(C52)

It is very disturbing to hear people talking about how uber/grab are killing taxi. What people don't understand is that no doubt there are impact but do people really know what is the impact?

Touch your heart, how often do you really take taxi in the past and how often do you take uber/grab now? I bet some people here don't even take taxi for the past 10 years but is currently using uber/grab due to "promo code". So technically did taxi lose customer ?? I also dare say that many passenger are taking uber/grab due to the promo code and cheaper fare (uberpool and grabshare).

The key problem that hit the taxi industry hard now is the amount of taxi driver jumping over to uber/grab. This result in empty taxi sitting there doing nothing. Taxi driver are also not given much incentive unlike uber. I once spoke to an uber driver and he told me that there were certain incentives from uber. The more attractive one were cheaper rent and incentive for driving on the road with app turn on (even w/o passenger).

The promocode are to effective in luring customer but how long can this last? No doubt grabshare or uberpool are cheaper in fare but they are meant for people who are not rushing for time. I believed once uber/grab promocode craze are over. The taxi business would be back and most likely with new look. Maybe new scheme for taxi driver?

Thus over the long run i believed CDG would climb up to where it used to be. We also have to remember in mind that taxi are not their only business.

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30 people like this.
yjlim :

Reply to @Noctis : totally agree. maybe hire some msian or tiong to be full timer driver.

yjlim :

Reply to @financialfreedom : CDG also got a part in sbs :D
but investing is SBS is fine too haha

Noctis :

comfortdelgro need to innovate something smart

rubberducky :

take more taxis everyone, hah

div1g4in :

Reply to @yjlim : I hope SH go up leh.

financialfreedom :

@yjlim.excellent.time to buy blue chips,i think noble will drop more

yjlim :

Reply to @financialfreedom : seems like all blue chip might drop a bit tomorrow

yichen_ye :

I rarely take taxi already.

financialfreedom :

tomorrow will drop in price,waiting patiently

seejjl :

Reply to @Sporeshare : Could you share more on this?

seejjl :

Reply to @2V_ : What kind of features do you think?

2V_ :

Reply to @rayhong : To Temasek it's of course Bao Jia! you see SMRT, privatize at low price!

rayhong :

Reply to @2V_ : Of cos its a bao jiak .Cos temasek will protect their rice bowl. Haha.

2V_ :

Reply to @rayhong : Still Bao Jia if remove as STI component stock? Lol ...index funds need to dump

2V_ :

the share price has heavy top$2.8-3.20 during 2015-2017, is it due to inclusion as a STI component stock? Index funds need to buy as part of its investment strategies . Anyone knows when is the next STI stock counters review?

rayhong :

This stock all investors eyeing like a hawk. Bao jiak stock. Close both eye click enter.

Sporeshare :

Reply to @seejjl : Don't under estimate Grab and Uber. They are going stronger. Definitely has impact on cdg taxi rental fleet.

2V_ :

Reply to @seejjl : Uber has long term disruption effect to transportation sector, a lot of features are kept out till listing.

seejjl :

In my opinion, Uber and Grab are just small short term disruptions and unlikely to grow in the long haul. How long can promo codes truly sustain. Humans always like discounts, but too much discounts in life will spoil them and it becomes a "necessity". Furthermore, CDG has almost never failed to disappoint, I am not referring to the human factor of the business, but more on the service delivery of the business. LTA will intervene time to time to ensure balance in the land transport sector. It really depends on how the management responds to these obstacles (whatever you call it), and turn it to their advantage. Diesel tax? Many of the taxis I take nowadays are the newer versions anyway. Strong financials are the most important. My confidence on CDG has not been faltered yet.

theintelligentinvestor :

People also talked about $4 for Keppel during trouble times with the Sete order. Just saying...:)

inspirez :

Maybe carpooling for CDG taxis can be a thing? It seems like things are going wrong for CDG, but that is assuming CDG doesn't do anything about it.

Also, as mentioned by yjlim in this post, uber/grab are more catered to a group who doesn't even take taxis but take uber/grab because of promo codes. I belong to this group too!

Considering to invest in CDG but currently unsure whether to enter at current price.

onlybuyneversell :

Reply to @Li_Guang_Sheng : I am vested in CDG too. So I also paid attention to factors that may affect CDG and its competitors.

Li_Guang_Sheng :

Reply to @onlybuyneversell : Yup. I analyze before the diesel tax. Have to try to seek the ground on those driving for HDT and the opinion and feedback. You may be correct. I forgetten there is a new catalyst in the equation. Thanks for highlighting again.

onlybuyneversell :

Reply to @Li_Guang_Sheng : But HDT cabs are electric cars;they aren't affected by the new diesel tax. So now the equilibrium might shift in favor of HDT.

Li_Guang_Sheng :

Reply to @financialfreedom : You have not check the ground. I have check and took many HDT Cabs as I have comfort Delgro to check on competitors. Taxi driver who convert find it lower pay as compared to getting their own cab. A lot return back HDT cabs.


Recommended & Related Posts

yjlim avatar
Rank sm
572
Posted by: yjlim 21 K

Just my thoughts. No offence to anyone.

I have recently sold nearly half of my portfolio due to some trends that i have been seeing and hearing. I realized that there are more and more people are suddenly buying stocks and profiting from pennies. On top of that the recent chart for most of the stocks don't look good. I have a feeling a correction might be soon but no one can tell for sure. After all last year there was a crash already so i may be wrong.

So why do i only sold half and not all since i believe there will be a crash? Well cause only those half were in the green. While the other half were in the red. I do not really care about paper gain/loss. However i know one thing for sure is that once you sell a counter at paper loss, you loss. Some are in the green but i keep them as i believe they will CXG soon in the next few days.

I know blue chip can be keep for dividend but i believed that some blue chip can also go down and never recover. One example would be $Creative(C76). Thus the only stock remaining in my portfolio are $ComfortDelGro(C52) $CapitaMall Trust(C38U) $UOB(U11) $StarHub(CC3) $ThaiBev(Y92) $MM2 Asia(1B0).

What are your thought? Is the bull gonna chiong or is the bear coming back.

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rubberducky avatar
Rank sm
678
Posted by: rubberducky 28.9 K

23 March Update - Entry $Chip Eng Seng(C29) at 0.74 to 11% portfolio. been to the Grandeur park launch, and like what im seeing from the management. Altho' they could have serve more food & drinks then.

$ComfortDelGro(C52) is in consolidating mode, if it dipped below 2.45, will increase %portfolio. As for $SingPost(S08), unlikely will add more %portfolio unless the current support level is breached.

$QAF(Q01) $SATS(S58) $SPHREIT(SK6U) $Frasers L&I Tr(BUOU) intrigued me, but still around 5-10% from entry price.

changed entry to $SingTel(Z74) to low 3.8x. so much uncertainties in telcos at the moment.

Cash 72% / 28% Nest

Estimated % In my nest-
$ComfortDelGro(C52) 25%
$SingPost(S08) 25%
$Raffles Medical(BSL) 25%
$Chip Eng Seng(C29) 10%
$SingTel(Z74) 8.5%
$Frasers Cpt Tr(J69U) 6.5%

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MasterLeong avatar
Rank sm
5134
Posted by: MasterLeong 4.05 K

Already holding 15,000 CDG $ComfortDelGro(C52)
Which is around 12% of my portfolio
I thinking of adding 5,000 more at 2.5 or 2.4 level
20,000 cdg will be around 16% top position, is this too much?
Reasons i like cdg
- 10 year track record of increasing earnings and dividends
- pe 16 is reasonable and low compared to other growth stocks like sats/thaibev/sgx blue chips that trade at 20-25 times earnings
- dividend yield 4%+
- ROE above 12%
- net cash biz
Potential risk
- uber/grab threat to taxi biz which is 30% of cdg earnings
- currency risk to UK and Aussie bus/cab biz

What are your views?

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