ComfortDelGro    Last:1.29   -

ComfortDelGro fundamentally strong but price weak

Did they disclose what?s the utilization now? How much more veg has to pay when utilization increase? These are critical info that shouldn?t be withheld.

 

*295 million in cash, total deal is 600 plus million

Sunstar      ( Date: 09-Dec-2017 09:56) Posted: Uber paid 14000 cars x 100k = 1.4bln. Comfort only paid $295mln for 51% of it?s 12.4k cars. Comfort got a good deal investshare      ( Date: 09-Dec-2017 09:45) Posted: It said Lion has net debt $1b

 

@MichaelSchenker. Yes. I agree with some parts, you would have been right if, " Now, ComfortDelGro has a 51% controlling stake over Uber LCR. In any **PROFITABLE** businesses, if you can control your competitor you will have the edge.
The problem is, you are getting a stake of a part of Uber that is loss-making. "
But you have to include in ALL variables. Investments requires analysis, if not, you would no different from uncles who gambles.

Car fleet increase+
Synergy in some other ways+
Savings from repairs/maintenance+

LCR has net debt of $1billion dollars, not a small amount -
Risk of idling car fleet & depreciation-
Paying $295m -

Thats why I think the news is bad-neutral. But the good news is comfort has dropped a lot. Probably due to insider sell off, it might dip or little more/rebound is due soon.
Back to square 1, there was insider selloff, hence the price drop. If it were great news, the counter would have surge beforehand. SGX never properly enforce such things 1. SG way too much insider trading, nothing has change.
 

Tommy12356      ( Date: 09-Dec-2017 10:24) Posted: Singapore is a small island and limited population ... unless MRT give issues daily .... MichaelSchenker      ( Date: 09-Dec-2017 08:04) Posted: Look at it this way, in the past, Uber and Grab competes with ComfortDelGro. Now, ComfortDelGro has a 51% controlling stake over Uber LCR. In any businesses, if you can control your competitor you will have the edge.  But Im not sure about this, market seems not to favour this move, perhaps due to the bad vibes about LCR. All this should already have already been priced in during the past week. So, what we are expecting is short term it will dip, Long term it should take off, after ironing out the problems at LCR. Im not vested(yet), but wish you guys Good Luck.

 

CDG rental so high, making $ out of singaporean .....

Stanton      ( Date: 09-Dec-2017 11:13) Posted: U are absolutely correct, do u also think CDG is stupid and would collaborate if there is nothing's to earn? Good or bad neutral or not that's your view others have positive views. destinykraze      ( Date: 09-Dec-2017 09:17) Posted: Why would I short. not much meat. It' s at $1.91 already, insiders already shorted or sold most of the shares. I know you entered at high price. But don' t be a sour puss. It' s the truth that this news is some what bad-neutral. And Uber isn' t stupid, they are bigger than comfortdelgro, you think they would collaborate if there is nothing to earn

 

51% stake in a company over $1,000,000,000 net debt is a great idea... Yeah, no uncertainty. *Sarcasm*

investshare      ( Date: 09-Dec-2017 09:45) Posted: It said Lion has net debt $1b? edwinjup      ( Date: 09-Dec-2017 09:29) Posted: Cimb research report out....can find at sginvestor

 

U are absolutely correct, do u also think CDG is stupid and would collaborate if there is nothing's to earn? Good or bad neutral or not that's your view others have positive views.

destinykraze      ( Date: 09-Dec-2017 09:17) Posted: Why would I short. not much meat. It' s at $1.91 already, insiders already shorted or sold most of the shares. I know you entered at high price. But don' t be a sour puss. It' s the truth that this news is some what bad-neutral. And Uber isn' t stupid, they are bigger than comfortdelgro, you think they would collaborate if there is nothing to earn? Stanton      ( Date: 09-Dec-2017 02:40) Posted: What do u think will happen id CDG do nothing? Now they are making a very positive move. Taxi drivers' income will increase with Uber platform. Taxi drivers will be happy, can use Uber app and can pick up passengers along the street. Taxi revenues are going rise and they will get best both worlds. U are entitled to your negative views and I encourage u to short on monday, Good luck to u.

 

Singapore is a small island and limited population ...
unless MRT give issues daily ....

MichaelSchenker      ( Date: 09-Dec-2017 08:04) Posted: Look at it this way, in the past, Uber and Grab competes with ComfortDelGro. Now, ComfortDelGro has a 51% controlling stake over Uber LCR. In any businesses, if you can control your competitor you will have the edge.  But Im not sure about this, market seems not to favour this move, perhaps due to the bad vibes about LCR. All this should already have already been priced in during the past week. So, what we are expecting is short term it will dip, Long term it should take off, after ironing out the problems at LCR. Im not vested(yet), but wish you guys Good Luck.

 

PLEASE stop sayinf cdg get a good deal at 47k PER CAR.. the calculation CANNOT be done like that!

u have to consider any existing LCR debt also

 

Are you sure UBER paid up the cars ????!!!

It could be a 90% loan or zero downpayment , walk away with a new car .... Still got massive loans to be paid up 

Sunstar      ( Date: 09-Dec-2017 09:56) Posted: Uber paid 14000 cars x 100k = 1.4bln. Comfort only paid $295mln for 51% of it?s 12.4k cars. Comfort got a good deal investshare      ( Date: 09-Dec-2017 09:45) Posted: It said Lion has net debt $1b

 

If the car belongs to you, its easy as ABC. But the car belongs to the rental company, LCR.

seba240698      ( Date: 09-Dec-2017 09:09) Posted: If you want to convert PHV to private car, just go LTA and pay, I think it is $50. It is as easy as ABC. Observers      ( Date: 09-Dec-2017 08:19) Posted: But all their cars got the PHV sticker, won' t lose face in front of relatives during CNY

 

Uber paid 14000 cars x 100k = 1.4bln. Comfort only paid $295mln for 51% of it?s 12.4k cars. Comfort got a good deal

investshare      ( Date: 09-Dec-2017 09:45) Posted: It said Lion has net debt $1b? edwinjup      ( Date: 09-Dec-2017 09:29) Posted: Cimb research report out....can find at sginvestor

 

It said Lion has net debt $1b?

edwinjup      ( Date: 09-Dec-2017 09:29) Posted: Cimb research report out....can find at sginvestor

 

Cimb research report out....can find at sginvestor

 

Hi cool sir.
No name calling please.
You can hate CDG or Grab or whichever coy, I don' t care, but pls don' t name calling in the forum.
I know Uber is not stupid, so is CDG.
CDG has over 4 decades of fleet managment and they grow everyday.
They are now meeting with some disruptions in 1/3 of their business which is taxi.
They are already doing some damage control.
And this deal is sweet for CDG, I strongly believe.
I had business dealings with CDG before and I also have ex-classmate as a director in CDG.
I dare say I know CDG quite well.
In any businesss transactions, I don' t think anyone is studid to have a bad deal, the most is no deal.
The fact that the deal took so long is just becasue of the details and probably the tough negotiations both parties had.
Chill please sir.

destinykraze      ( Date: 09-Dec-2017 09:17) Posted: Why would I short. not much meat. It' s at $1.91 already, insiders already shorted or sold most of the shares. I know you entered at high price. But don' t be a sour puss. It' s the truth that this news is some what bad-neutral. And Uber isn' t stupid, they are bigger than comfortdelgro, you think they would collaborate if there is nothing to earn? Stanton      ( Date: 09-Dec-2017 02:40) Posted: What do u think will happen id CDG do nothing? Now they are making a very positive move. Taxi drivers' income will increase with Uber platform. Taxi drivers will be happy, can use Uber app and can pick up passengers along the street. Taxi revenues are going rise and they will get best both worlds. U are entitled to your negative views and I encourage u to short on monday, Good luck to u.

 

Seems like the previous Hot argument on whether the price will hit 1.6 or 1.5 stands valid. There is a reason for evrything. Whether this is a good or bad move, result will tell, market will react, price will tell. Just hold tight to each of your decision and to stay true to your due deligence.

 

Why would I short. not much meat. It' s at $1.91 already, insiders already shorted or sold most of the shares.
I know you entered at high price. But don' t be a sour puss. It' s the truth that this news is some what bad-neutral.
And Uber isn' t stupid, they are bigger than comfortdelgro, you think they would collaborate if there is nothing to earn?

Stanton      ( Date: 09-Dec-2017 02:40) Posted: What do u think will happen id CDG do nothing? Now they are making a very positive move. Taxi drivers' income will increase with Uber platform. Taxi drivers will be happy, can use Uber app and can pick up passengers along the street. Taxi revenues are going rise and they will get best both worlds. U are entitled to your negative views and I encourage u to short on monday, Good luck to u. destinykraze      ( Date: 09-Dec-2017 02:01) Posted: Comfortdelgro has good management? Then you wouldnt see cab drivers stomping off to rival companies so easily. They are only good at squeezing cab drivers dry with rental and charging higher fares to earn more when there was no competition. Why LCR is losing money is simply because of rental. When comfortdelgro is adamant to increase rental, you will be seeing idling cars the same. Even without that, with more MRT lines operational there is no need for so many cars. The only thing that might work could be some cost saving synergy. And please don' t be naive, if the news is good, insiders would have bought up shares long time ago. we wouldnt see a 9 cent drop in 2 days

 

One more reason why I say the deal is positive.

With the zero increase of car population by LTA, cars (or rather COEs) ARE going to get more expensive, so with private car assets at a bargain, it is really a wise move.

 

If you want to convert PHV to private car, just go LTA and pay, I think it is $50. It is as easy as ABC.

Observers      ( Date: 09-Dec-2017 08:19) Posted: But all their cars got the PHV sticker, won' t lose face in front of relatives during CNY? edwinjup      ( Date: 09-Dec-2017 06:42) Posted: That why comfort soooo mean....pay 47k per car that worth more than 100k... and most important...comfort.need those car to replace all their 7400 sonata....but think uber wont like it....comfort very miao..ask them why dont reduce rental to fight with grab...say..if reduce $1..1 day will.cost them $17000... comfort only buying the assets...not uber...uber is the one that give promo code...one good thing about uber...the deal.also help.comfort to.reduce 1 competitor....coming cny...if u wan to rent car...maybe u will think.of comfort...lo

 

Uber only sold half to CDG. Maybe you can give Uber a call to buy up the other half? But CDG got own workshop to service those cars that are likely past the 100,000km warranty mark. You will have to do your own due dilligent.

seba240698      ( Date: 09-Dec-2017 06:53) Posted: Seriously, I want to buy a 3-year old car for $47k, CDG, will you sell it to me? Lcr, why did you sell it to CDG, why didn't you sell it to me? edwinjup      ( Date: 09-Dec-2017 06:42) Posted: That why comfort soooo mean....pay 47k per car that worth more than 100k... and most important...comfort.need those car to replace all their 7400 sonata....but think uber wont like it....comfort very miao..ask them why dont reduce rental to fight with grab...say..if reduce $1..1 day will.cost them $17000... comfort only buying the assets...not uber...uber is the one that give promo code...one good thing about uber...the deal.also help.comfort to.reduce 1 competitor....coming cny...if u wan to rent car...maybe u will think.of comfort...lo

 

CDG will likely use Uber LCR to fight Grab.

 

Observers      ( Date: 09-Dec-2017 08:15) Posted: SGD 300mil, can do special dividend distribution to shareholders, 15 cents a share. Now have to help Uber tank a war of attrition against Grab, how much, ultimately, is still an uncertainty.  Without this SGD 300mil, Uber might decide to exit the Singapore market and Grab might scale back its cash burning exercises thus bringing balance to the market. But with this 300 mil warchest courtesy of CDG, and the albatross of LCR around its neck lightened considerably, Uber will be staying to fight the fight for longer and harder.  赔 了 夫 人 又 折 兵 。   wanglausern      ( Date: 09-Dec-2017 03:37) Posted: LCR' s latest promotion to entice drivers: Free car rental for  the initial  number of months and thereafter at very competitive rental rates. You tell me lah desperate or not? Fortunately for LCR  Comfort  comes along as  Santa Claus. I think Comfort' s almighty advisors who sit in the Ivory Tower are not aware of what is going on, on  the ground.