ComfortDelGro

[kennynah]

MW : i hear a different adage about being "big"...but i guess, it wont be suitable to pen it here, being a PG rated forum...

[grandmaster89]

so..afterall...2nd largest (so it is claimed) transportation company in the world ... doesnt mean it can have decent growth profits, i guess...

GM was pretty big, once upon a time. it's practically bankrupt...

Size is definitely not a precursor to earnings growth or cashflow sustainability.

Merely pointing out since it's global expansion has helped it grow to the second largest in the world, we should give the Management some credit.

For some reason I still equate Comfort = Blue Cabs. Only this year did I find out that there is so much more to the company than that .

Not interested and not vested in Comfort.

[grandmaster89]

MW : i hear a different adage about being "big"...but i guess, it wont be suitable to pen it here, being a PG rated forum...

Size doesn't matter...

[kennynah]

i didnt think so too...

[Musicwhiz]

i didnt think so too...

The contradiction inherent in "size" is that if one is too big, it gets hard to grow revenue and profits meaningfully. Yet if one is too small, no one takes notice and it's hard to have enough clout to entice customers unless you offer a niche product/service.

So I guess the best solution is to be "medium-sized".

[kennynah]

i agree MW... size is secondary to "Kang Hu"... got pattern more than badminton... they just love it

[winston]

COMFORTDELGRO - Singapore bus and taxi operator ComfortDelgro said on Wednesday its full-year net profit rose 9.7 percent to S$219.5 million, helped by a drop in fuel and electricity costs.

Source: Reuters

[millionairemind]

May 14, 2010, 5.40 pm (Singapore time)

ComfortDelGro's Q1 profit up 3.4% to $54.3 mln

By SAMUEL EE

Growth in ComfortDelGro's key businesses boosted revenue by 7.0 per cent to $766.9 million for the first quarter ended March 31, 2010, and this helped net profit to inch up 3.4 per cent to $54.3 million.

The world's second largest land transport group said the bus business led growth by accounting for over 60 per cent of the increase in group revenue.

First quarter revenue from overseas operations accounted for 42.9 per cent of total group revenue, up from 40.3 per cent previously.

ComfortDelGro managing director and group CEO Kua Hong Pak said: 'We have continued to grow both our topline and bottomline but we are mindful that the global economic recovery remains fragile and there are significant challenges ahead.'

[winston]

Not vested

Comfortdelgro Corp ST: short term technical rebound towards 1.59 before a new drop <CMDG.SI>


Click here to see our chart:
http://www.tradingcentral.com/chart/CDS ... 043419.gif

Our pivot point stands at 1.59.

Our preference: short term technical rebound towards 1.59 before a new drop.

Alternative scenario: the upside breakout of 1.59 would call for 1.63 and 1.65.

Comment: the RSI is above its neutrality area at 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the share stands above its 20 day MA (1.53) but below its 50 day MA (1.54).

Supports and resistances: 1.63 *1.59 **1.58 1.54 last 1.48 1.46 **1.44 *

Source: Reuters

[winston]

Not vested. From CIMB:-

Comfortdelgro Corporation Ltd - Multiple avenues of growth

Maintain Outperform on ComfortDelgro with a higher target price of S$1.90 (from
S$1.83). Daily ridership for ComfortDelgro’s trains and buses has been rising almost
every month since the start of the year.

We keep our earnings estimates but raise our DCF-based target price to S$1.90 (WACC 8.0%) after rolling forward to CY12 and re-aligning discount rates with house rates.

Trading at 13x CY11 P/E which compares favourably with its 3-year P/E average of 17x and SMRT’s 19x CY11 P/E, we believe currency risks have been priced in and recommend a switch to ComfortDelgro from SMRT.

We see catalysts from higher-than-expected dividend payouts.