Shares & Derivatives
An incomplete analysis of ComfortDelgro.
By A Singaporean Stockmarket Investor (ASSI)  •  September 24, 2017
Retail investors have limited resources at their disposal and very rarely are able to do a thorough analysis of any business. Time is one of those limited resources. OK, I admit. I am lazy and I want to spend more time watching anime, K-drama and playing MMORPGs. Bad AK! Bad AK! Anyway, like what I have done in so many other instances in the past, I just zoom in on what I feel is the crux of the matter and try to make a decision based on what gives me peace of mind. The biggest problem facing ComfortDelgro now is its taxi business. Taxi business accounts for a third or so of its revenue.
The revenue might be lower compared to its public transport arm but because it is a higher margin business than its public transport business, a loss in revenue will dis-proportionally lead to a higher loss in earnings. When we remember that it will also impact another segment of its business and that is the sale of diesel to its taxi fleet, the picture becomes gloomier ......
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By A Singaporean Stockmarket Investor (ASSI)
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