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COMFORTDELGRO: A SAFE ENTRY PRICE?
By Alpaca Investments  •  September 30, 2017

ComfortDelGro has been on my watchlist since early this year, when it was trading at around $2.40. In my earlier post in February, I assigned a target price of $2.17 for CDG, on expectations that taxi earnings would be hit by the intense competition with private hire operators. 

Subsequently, CDG ran up to a high of $2.70 before going on a prolonged decline, and closed at a price of $2.08 yesterday. When CDG hit $2.17 a month ago, I did not initiate a position because I felt that its fundamentals have worsened. I have summarised my thoughts on CDG.


Strengths
Strong Financial Position
With $606.6 million in cash and cash equivalents and $377.1 million of borrowings, CDG is in a net cash position of $229.5 million. Some investors have suggested that CDG invests its cash outside of its core transportation business, similar to what SPH has done by venturing into the property segment.


Consistent Free...
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By Alpaca Investments
I'm currently an undergraduate studying accountancy in one of the local universities. My ideal career would be either in private equity or venture capital, as the analytical process involved greatly interests me. I believe in working hard, while concurrently putting our money to work. I currently have a low five-figures portfolio, accumulated from working part-time jobs, my National Service allowance and my savings.
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