| Latest Forum Topics / ComfortDelGro Last:1.29 -- |
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ComfortDelGro fundamentally strong but price weak
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Asdfgh101
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08-Aug-2023 16:15
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more likely will be 2 cents...also likely to drop as well to do a flush before breaking 1.27...sweden and bus contract results has to out before there is any momentum, once are achived or partially achived and it breaks 1.35 next step will be to get back into STI and other indexes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Entropy72
Master |
08-Aug-2023 13:35
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Results should be out within the week and we are looking forward to good dividend (> 5 cts?) + forward guidance.
A breakout above $1.27 will be powerful.
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MambaFinancial89
Veteran |
08-Aug-2023 11:42
Yells: "Be greedy when others are fearful. " |
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Seems like $1.27 is an impregnable fortress that can' t be broken through. Any idea on when results will be announced?  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Asdfgh101
Member |
01-Aug-2023 13:36
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The buy from seller vol today looks quite ridiculous...anyone knows how what is the price CDG should be at before going back into STI or MSCI? | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Asdfgh101
Member |
31-Jul-2023 15:45
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Sell once the bus tender and Sweden contract results are out...of course if all are wins the next step could be relisting back into STI...DYODD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Entropy72
Master |
29-Jul-2023 21:18
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Convergence of PHV ride hailing and taxi street hailing is well underway, supported by common booking platform.
In a few years time, the PHV/taxi fleet will be increasingly EV-based (that requires distribution and charging infra) and in another few years time, autonomous self-driving taxis will emerge as part of the fleet that requires servicing expertise. CDG can expand its mobility services geographically in Europe / ANZ which is distinct from Grab?s ASEAN focus. How about merger of Grab (PHV/deliveries, minus fintech) and CDG one day to create a more powerful transport/logistics operator? |
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Entropy72
Master |
29-Jul-2023 21:08
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Grab?s move validates CDG business model. Not enough to be pure platform play and burn cash for GMV growth (not profit) sake. If it had not listed in time before market crashed and lined its pocket with IPO cash, it could have gone down the drain already.
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Speediman
Veteran |
29-Jul-2023 17:20
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I think grab has nowhere else to go. Taxi rates are expected to go up and right now most taxi drivers are free to use all apps, Grab is facing a uphill task to keep market share, so buying a taxi company is one quick way to show " increase" of market share. CDG Zig app is getting better and fast eroding Grab market share.       |
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Entropy72
Master |
28-Jul-2023 22:07
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Grab sets out to kill CDG. Then it now wants to become CDG by going into hard assets and rental business ?
Why should Grab valuation be so high as compared to CDG? Grab burns cash while CDG churns cash from diversified transport operations.
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Entropy72
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28-Jul-2023 22:04
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Source: The Straits Times
Ride-hailing giant Grab?s acquisition of taxi operator Trans-Cab last week, pending regulatory approval, has deep implications for commuters, driver-hirers, investors and competitors. Commuters, in particular, have reason to fear higher fares. But first, a burning question. Why is a tech company acquiring an asset-heavy bricks-and-mortar business? It seems to be a bewildering move, but if one examines the nature of the Singapore ride-hailing market, the answer becomes clearer. In acquiring Trans-Cab, Grab is gaining direct access to a large pool of driver-hirers. In a market that is still experiencing a shortage of full-time drivers, this new access to a resource pool gives a player an edge over its rivals. The imperative here is full-time drivers. It is estimated that more than half of private-hire drivers here are casual drivers. Once they collect enough fares to cover their daily rental, they stop ?plying? for customers, and start using the car as their own. This is partly why, despite the market having more than three times the number of point-to-point vehicles from 10 years ago, commuters are still finding it difficult to get a ride when they need one. The other reason why the tech company is buying an old-school business is rental income. At $80 to $85 a day per vehicle, rental income is a sizeable contributor to an operator?s bottom line. The acquisition includes Trans-Cab?s fleet of some 2,200 taxis and 300 private-hire cars. Assuming an average daily rental of $80, the acquisition translates to an annual revenue of $73 million. Rental rates have yet to return to pre-pandemic highs of $120 a day. If and when they do, Grab?s tills will ring even louder. Spreading its risks Buying a taxi company also gives Grab an entirely new business ? street-hail, and, with it, unhindered access to taxi stands. While street-hail fares have decreased since ride-hailing apps appeared, there is still demand, especially among older commuters. The move will reduce regulatory risks for Grab, should the authorities decide to tighten rules governing the private-hire industry. While such a move looks unlikely in the near term, one cannot rule out the potential for change in the future. Grab is merely putting its eggs in more than one basket. The acquisition includes Trans-Cab?s vehicle workshop and fuel pump operations. These, too, will translate to a handsome revenue stream for Grab. Next, with sky-high certificate of entitlement (COE) prices, and increasingly loud assertions that private-hire companies are responsible for the soaring premiums, moving into the taxi sphere allows an operator to grow its fleet with less price and social pressures. (Taxi operators have the option of registering new cabs by paying a moving average of COE premiums, which can be less prohibitive than bidding for fresh COEs.) Acquiring a fleet also raises the barrier of entry to newcomers. Ride-hailing firms are only as good as their apps and new apps are created regularly. If someone comes up with a better app, users will have one fewer reason to use Grab. While Grab may have disrupted the point-to-point transport market with no fleet of its own 10 years ago, it did so with hundreds of millions of dollars in fare subsidies from exuberant investors. Today, investor appetite for tech start-ups has waned somewhat. These start-ups are facing increasing pressure to show profit. In Singapore?s highly regulated vehicle market, point-to-point transport is really a zero-sum game. Grab?s acquisition of Trans-Cab is thus not only an instant fleet-expansion strategy, but it also potentially denies competitors access to a sizeable pool of drivers and vehicles. Grab is not the first nor will it be the last ride-hailing firm to acquire an asset-heavy business. Before it exited the Singapore market in 2018, American ride-hailing firm Uber bought tens of thousands of cars here. It is telling that Grab did not acquire Uber?s abandoned fleet, but instead wooed Uber?s drivers over to its camp. Grab to buy S?pore?s third-largest taxi company Trans-Cab Private-hire car numbers up 11.3% as demand for service grows The attraction of a cab company is somewhat different. For Grab, Trans-Cab was its third attempt at buying a taxi company here. In 2017, it was in talks to buy SMRT?s fleet, but the deal fell through. In 2022, it started talks with Prime Taxi, the smallest cab operator here, but that deal too did not proceed. In both cases, sources said the offers and terms were not attractive enough for the owners. If regulators do not object, Grab will soon have Trans-Cab in its fold, and fleet owners looking to sell are likely to have weaker bargaining power now. They could, of course, entice Gojek, which is another major ride-hailing firm operating here. In 2020, Gojek bought a stake in Indonesia?s leading taxi operator Blue Bird. In November 2022, it tied up with Singapore?s leading taxi company ComfortDelGro to explore areas of cooperation. So, clearly, Gojek sees the attraction and relevance of a taxi business, too. Wide-ranging impact Now, let us look at the impact Grab?s acquisition of Singapore?s third-largest taxi operator will have. First off, it means the point-to-point transport industry is consolidating. Earlier this year, SMRT-owned Strides merged with Premier Taxis to form Strides Premier. Purportedly, Strides holds the majority stake, since the vehicles will ply with the Strides brand name. Will Trans-Cab taxis be rebranded Grab Taxi? There is a good chance that will happen. And if it does, the line separating taxi operators and private-hire operators will blur further, since all taxi companies here already have their own private-hire fleets. The majority of cabbies also use Grab or Gojek apps to secure fares. Commuters and driver-hirers can expect less competition, which usually translates to higher charges or lower level of service ? or both. Higher fares? This is already evident. With Singapore?s taxi fleet halved since ride-hailing firms appeared a decade ago, commuters are complaining of sharp fare hikes and increasing difficulty in securing a ride. A poll done in April by The Straits Times corroborated the anecdotal evidence. On average, fares have risen by around 27 per cent, while waiting time has increased by 34 per cent when compared with findings in a similar survey done in 2019. The increase in charges for rides secured with ride-hailing apps (Grab and Gojek) was the sharpest at 43 per cent. With Grab?s takeover of Trans-Cab, commuters have reason to expect more of the same. Business Times reader Ho Swee Huat wrote over the weekend that he feared the move would ?confer further monopolistic pricing power on Grab?. ?Fares have gone up significantly. In periods of ?surge? pricing, it is not uncommon for fares from the Central Business District to Changi Airport to double... to $60,? Mr Ho noted. Others have highlighted the particularly infuriating practice of drivers cancelling on them. Not only do commuters in such a situation have to rebook and wait longer, but they also sometimes face a spike in charges when ?surge? pricing suddenly kicks in. Likewise, driver-hirers will have one fewer option in town if and when Grab decides to raise rental rates or introduce new requirements. More consolidation? While some observers point out that there is still competition in the sector, they fail to note that with the acquisition of Trans-Cab, Grab will have a vehicle fleet which is now closer to market leader ComfortDelGro?s 9,500. On top of that, Grab wields considerable power, commanding up to 75 per cent of the ride-hailing market here. Thus, it is likely that it will soon have the status of a price setter. It would not be surprising if the industry consolidated further. Grab may buy another operator. Gojek may be on the hunt as well. ComfortDelGro, which did not proceed with a plan to acquire Uber?s fleet when the latter exited Singapore, may relook its options. If the industry consolidates further, smaller players such as Prime Taxi, Tada and Ryde are particularly vulnerable as they may become too niche to remain viable in the long run. Sizeable competitors will have to double down to raise their game. While a price war is unlikely to have a win-win outcome, more enlightened players will focus on raising the service level. Those with better human resource policies will attract and retain full-time drivers, which in turn will drive commuter satisfaction. This is in no way a revelation to anyone. It was, after all, poor customer satisfaction which prompted the rise of ride-hailing in the first place. Now that cracks are appearing on the ride-hailing front, traditional point-to-point transport providers have a window of opportunity to win back lost ground. These players should seriously consider merging to regain their diminished foothold. As for investors, Grab?s acquisition of a major taxi firm in Singapore is unlikely to move the needle significantly on group profitability. The US-listed group aims to turn in a positive ?adjusted Ebitda? by end-2023. Ebitda is earnings before interest, taxes, depreciation and amortisation ? a measure which many, including investment king Warren Buffett, deem to be not meaningful as it excludes crucial cost items. However, the fact that Grab has continued to narrow quarterly losses seems to be bolstering its share price, which has risen by 12.5 per cent to reach US$3.60 at Monday?s close. The price, however, is still far from its debut high of more than US$16 in 2021. The group will have to do more ? much more ? than acquire new businesses or initiate mass layoffs to convince investors. |
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Battle123
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28-Jul-2023 16:22
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I think better run first lor, recent negative news from market on taxi shrinking , higher operating and maintenance cost on buses , etc.  Now only pending those analyst reviews and re-rating , as not sure how' s the coming result .....  
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josephyeo
Elite |
28-Jul-2023 12:29
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last year result out on 12 aug ' 22 cum dividend of 4.26 cts special dividends included | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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angmohlin
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28-Jul-2023 12:23
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As predicted price have starts dropping. Touching 1.24. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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beetlejuice
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28-Jul-2023 11:59
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Results date not announced yet right?
Hope for another round of good dividend. 💰 🧧
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Entropy72
Master |
28-Jul-2023 11:52
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2 more weeks prior to results release.
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beng1102
Elite |
28-Jul-2023 11:42
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Seem to be hitting a ceiling but I think it is  matter of time the price will break up.
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angmohlin
Veteran |
27-Jul-2023 12:37
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Technically looks bearish unless strongly break above 1.26. Volume & ADX' s D+ both have been declining also. I am confident that the share price will pullback soon. Please DYODD. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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josephyeo
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26-Jul-2023 21:58
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Comfortdelgro is normally generous w its dividends. Last year dividend was 8.48 cts per share, " special dividend" included.  
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angmohlin
Veteran |
26-Jul-2023 15:12
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1.272 Fibo retracement level and/or $1.26 level is a resistance & distribution level. Coupled with overbought many days and divergence with MACD histogram. Price should pull back soon. Just my 2 cents and DYODD.  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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josephyeo
Elite |
26-Jul-2023 13:35
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Dividend history. For info only:  
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