ComfortDelGro    Last:1.29   -

ComfortDelGro fundamentally strong but price weak

It' s not an asset purchase actually. It' s a 51% share in the company. So, comes along with everything, not cherry pick. Ultimately, now you have a old management taxi operator that has majority share in  a PHV business. For sure, conflict of interest will be there one day... To give my one dollar to my taxi or to my phv.. Uncertainty is never good. Until they are able to synergise both... But if they do uber/comfort synergy, does it mean they are kick out of grab? this is going to be interesting, but before we see any winners, more money have to be thrown in for sure.. Where got things come for free one.. Just lay ur bets or stay out of it and look for easier counters.. 

seba240698      ( Date: 11-Dec-2017 10:14) Posted: Sometime I'm wondering, I corps be naive, could it be the $295 mil CDG offered EXCLUDES the $1b debt lcr has? Just perky buying the cars? Possible? I'm not sure...... alexchew      ( Date: 11-Dec-2017 09:40) Posted: Ridiculous price they are paying.. To commit so much money into this new business....what' s the payback like even if it is accretive..  OMG.. So many longist here keep say, grab and uber is losing big money.. So by going into this business, what does it mean? Does it mean, comfort will have to also " sponsor" money to give out promotions to fight it' s own taxi business and grab at the same time? hmmm... instead of one place to battle, it branches out into 2 now.. And fighting more people.. I really want to know, how much money does comfort has.. lolz.. Get ready to eat into it' s 2/3 profits and use to go all out.. Dividend cuts possible next year onwards if this goes on and on..

 

Sometime I'm wondering, I corps be naive, could it be the $295 mil CDG offered EXCLUDES the $1b debt lcr has? Just perky buying the cars? Possible? I'm not sure......

alexchew      ( Date: 11-Dec-2017 09:40) Posted: Ridiculous price they are paying.. To commit so much money into this new business....what' s the payback like even if it is accretive..  OMG.. So many longist here keep say, grab and uber is losing big money.. So by going into this business, what does it mean? Does it mean, comfort will have to also " sponsor" money to give out promotions to fight it' s own taxi business and grab at the same time? hmmm... instead of one place to battle, it branches out into 2 now.. And fighting more people.. I really want to know, how much money does comfort has.. lolz.. Get ready to eat into it' s 2/3 profits and use to go all out.. Dividend cuts possible next year onwards if this goes on and on..

 

Ridiculous price they are paying.. To commit so much money into this new business....what' s the payback like even if it is accretive..  OMG.. So many longist here keep say, grab and uber is losing big money.. So by going into this business, what does it mean? Does it mean, comfort will have to also " sponsor" money to give out promotions to fight it' s own taxi business and grab at the same time? hmmm... instead of one place to battle, it branches out into 2 now.. And fighting more people.. I really want to know, how much money does comfort has.. lolz.. Get ready to eat into it' s 2/3 profits and use to go all out.. Dividend cuts possible next year onwards if this goes on and on.. 

 

Good sign for those who are in.

Up with high volume.

Afternoon session today may be crucial to see if there is high volume profit taking.

(current last done: 1.980 vol: 10.3k lots)

lynn89      ( Date: 11-Dec-2017 09:30) Posted: market up by 7 cts, at $1.98

 

market up by 7 cts, at $1.98

 

nah, cdg insiders sold before the annoucement. BBs considers the price fair to not let it dip further. If not, it would had surge over $2.05 which was before the price dip.
the 

investshare      ( Date: 11-Dec-2017 09:02) Posted: Market seem to accept it neutral to positive as of now. MichaelSchenker      ( Date: 11-Dec-2017 08:37) Posted: CDG is not interested on how the app works, Uber has already been globally tested.  Be assured, when CDG walk into LCR, they will open up all the books. CDG is more keen on the market behaviour, margin, utilisation rate.....etc,etc. They need to plot future growth and synergise the taxi and PHV business HERE in Singapore.  Anyway, enough said, to each his own opinions. Market opening soon, time to do some work.

 

Market seem to accept it neutral to positive as of now.

MichaelSchenker      ( Date: 11-Dec-2017 08:37) Posted: CDG is not interested on how the app works, Uber has already been globally tested.  Be assured, when CDG walk into LCR, they will open up all the books. CDG is more keen on the market behaviour, margin, utilisation rate.....etc,etc. They need to plot future growth and synergise the taxi and PHV business HERE in Singapore.  Anyway, enough said, to each his own opinions. Market opening soon, time to do some work.. investshare      ( Date: 11-Dec-2017 08:28) Posted: The 51% is on a company owning used cars NOT the app

 

CDG is not interested on how the app works, Uber has already been globally tested. 

Be assured, when CDG walk into LCR, they will open up all the books. CDG is more keen on the market behaviour, margin, utilisation rate.....etc,etc. They need to plot future growth and synergise the taxi and PHV business HERE in Singapore. 

Anyway, enough said, to each his own opinions. Market opening soon, time to do some work..

investshare      ( Date: 11-Dec-2017 08:28) Posted: The 51% is on a company owning used cars NOT the app. MichaelSchenker      ( Date: 11-Dec-2017 08:22) Posted: Why do you think CDG secure 51%

 

The 51% is on a company owning used cars NOT the app.

MichaelSchenker      ( Date: 11-Dec-2017 08:22) Posted: Why do you think CDG secure 51%? investshare      ( Date: 11-Dec-2017 08:16) Posted: Without the data, CDG is fighting in dark. When there is new changes it could not react again

 

Why do you think CDG secure 51%?

investshare      ( Date: 11-Dec-2017 08:16) Posted: Without the data, CDG is fighting in dark. When there is new changes it could not react again. destinykraze      ( Date: 11-Dec-2017 08:15) Posted: If its money making, nobody would be worried. But, it' s a loss-making stake, much uncertainty

 

Without the data, CDG is fighting in dark. When there is new changes it could not react again.

destinykraze      ( Date: 11-Dec-2017 08:15) Posted: If its money making, nobody would be worried. But, it' s a loss-making stake, much uncertainty. investshare      ( Date: 11-Dec-2017 07:53) Posted: With this deal the precious big data still with Uber as they own the app. CDG degrade to just car rental.

 

If its money making, nobody would be worried. But, it' s a loss-making stake, much uncertainty.

investshare      ( Date: 11-Dec-2017 07:53) Posted: With this deal the precious big data still with Uber as they own the app. CDG degrade to just car rental.

 

With this deal the precious big data still with Uber as they own the app. CDG degrade to just car rental.

 

I think Grab and Uber (or more accurately the funds behind them) are starting to be selective in where they burn their cash. If I were them, I would choose cities where lvl 4/5 autonomous vehicles would receive the most support from the local government. Detailed and accurate digitised GPS maps, forward looking legislators preparing to write them into law, good wireless coverage, autonomous research in local universities, support from autonomous vehicle vendors (presence of major car manufacturers making headway in this field) etc.

I believe, outside of China' s first tier cities, Singapore would rank amongst the firsts to embrace autonomous taxis/phvs. 

brchkho1      ( Date: 11-Dec-2017 00:26) Posted: Grab and Uber are burning money with the hope to change the lifestyle. Once the objective is achieved, incentives and promotions will be reduced to achieve profit. From what I heard from radio, one DJ said, Di Di drivers are now not earning enough compared with those taxi driving days and are going back to drive taxi liao. Let' s see whether it will happen here given our market is much smaller.

 

Grab and Uber are burning money with the hope to change the lifestyle. Once the objective is achieved, incentives and promotions will be reduced to achieve profit. From what I heard from radio, one DJ said, Di Di drivers are now not earning enough compared with those taxi driving days and are going back to drive taxi liao. Let' s see whether it will happen here given our market is much smaller.

 

According to a broking house, LCR is in debt to the tune of $1 billion which works out to $71k outstanding loan per car.
Even sources from other forums also quite  pessimistic, it might be worse than I thought.
Disregarding the synergy and alliance for further collaboration.
This works out to be 51% of $1 billion debt.
$295m+$510. $805m to be paid for alliance. Worth it or not. Market will decide.

 

i expect Grab to counter attack these few days. Interesting c whether Comfort opening up how much increase.

 

I myself had stop using grab as most of the fare are high demand just from Punggol to orchard cost around $28while Uber maybe around $22 taxi might even be cheaper

 

Let?s wait CDG to go back $2 than move up and up

edwinjup      ( Date: 10-Dec-2017 19:42) Posted: They got lots of experts to do all the calculations for them....they even setup a school with e2i to train phv drivers just before the news out....on friday night..they already asked their drivers for consent form..on uber... xxadidasxx      ( Date: 10-Dec-2017 19:35) Posted: Will be excited to see how to market react will CDG rocket or Fall let?s see but over all a lot of bad comment but ask urself .those point you think CDG dun know ? They sure have a plan and not so dumb to buy over a lose $ deal .For sure is a win win for Uber and CDG with support from CDG Uber now can go full war with grab .What Grab can do is burn more money CDG and Uber will not join in the money burning game when grab have lesser promo and incentive for driver see passenger and driver will jump over to where .All CDG have to do is wait

 

They got lots of experts to do all the calculations for them....they even setup a school with e2i to train phv drivers just before the news out....on friday night..they already asked their drivers for consent form..on uber...

xxadidasxx      ( Date: 10-Dec-2017 19:35) Posted: Will be excited to see how to market react will CDG rocket or Fall let?s see but over all a lot of bad comment but ask urself .those point you think CDG dun know ? They sure have a plan and not so dumb to buy over a lose $ deal .For sure is a win win for Uber and CDG with support from CDG Uber now can go full war with grab .What Grab can do is burn more money CDG and Uber will not join in the money burning game when grab have lesser promo and incentive for driver see passenger and driver will jump over to where .All CDG have to do is wait