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I have received a number of messages from readers regarding the decline in ComfortDelgro's share price.
Mostly, the question is whether it is a good time to buy.
Regular readers know that AK will avoid answering questions like that most of the time.
However, I can say a few things to myself regarding the situation right now.
If we subscribe to what Warren Buffett says that we should be greedy when others are fearful, then, we should know what to do.
Is the Wuhan coronavirus going to be a permanent fixture?
Are we never going to recover from this crisis?
Well, I am inclined to believe that the CEO of DBS is correct.
Things will improve come summer as the virus will not do well in warm weather.
Simply put, we will recover from this Wuhan virus crisis just like we recovered from the SARS crisis.
It will take time, of course, but I do not doubt that we will recover.
What?
Cannot call it the Wuhan virus?
The official name is COVID-19?
Alamak.
Why not call it the Chinese Flu so that we know where it is from?
If you ask me, I think the WHO has to give China face lah.
Before beating the dog must see who is the owner, right or not?
Why can have Spanish Flu but cannot have Chinese Flu leh?
Ahem.
Anyway, I still think that ComfortDelgro is a good Dividend Machine.
I have nibbled at ComfortDelgro as its share price declined.
I hope I am smart enough to buy more if Mr. Market goes into a deeper depression.
On that note, in case you missed my blog on Dividend Machines or if you are thinking about signing up but have yet to do so, please note that application for the class of 2020 closes this weekend.
If you are really interested in learning about investing for income in a structured manner, sign up now or you would have to wait till next year for the next intake.
Find out more or sign up: HERE.
Related posts:
1. CPF and Dividend Machines.
2. Incomplete analysis: ComfortDelgro.
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26 comments:
Hi AK,
Any thoughts on the latest quarter report by QAF? If Primary Production business is sold, QAF may truly be one good dividend machine focused on mainly bakery business.
"Further to the Company’s 3Q2019 results announcement of November 2019, the Company has decided, after consultation with its financial advisor, Rabobank Singapore, to pursue a sale of the Primary Production business. The Company intends to focus on the Bakery and Distribution and Warehousing segments in the core markets of Singapore, Malaysia and the Philippines, within the growing 650 million population of ASEAN countries. The Primary Production business is in the animal protein segment, a very different and separate business, and operating in a different geographical region. Following nearly 20 years of ownership, the Primary Production business has reached the necessary scale and is now an ideal platform for a new owner with a strong focus on the animal protein segment to bring it to its next growth phase and take the business to the next level."
Hi keng,
Well, they did try to do this before via a listing of the said business and if it had happened, it would have been a good thing.
So, this development is a new spin on an old but good idea. :)
Hi AK,
Agree with you that ComfortDelgro is one of divdidend machines. how about Singtel at current price? Thanks
Hi Ak,
how about singtel at current price level? is it still one of your dividend machines? Thanks
Hi AK,
I am totally new to investing, do you think Dividend Machines be too overwhelming for me?
Thanks.
Hi AK,
Have been quietly following your blog for some time and it's really comprehensive. I am full of envy of your dividend stream. Quick question on Dividend Machines, I am totally new to investing, will Dividend Machines be too overwhelming for a newbie like me. Like TOTALLy newbie :-p
What about ComfortDelgro vs SBS and VICOM? any thoughts? :)
Hi SAFE,
I sold most of my investment in SingTel many months ago but I am still invested.
See:
Sell into the rally and stay invested.
and
Largest investments updated (3Q 2019).
If Mr. Market were to offer SingTel to me at around $2.90 a share, I would probably buy some. ;p
Hi Gemini Guppy,
Dividend Machines is a well structured course for anyone interested in investing for income.
I believe that Dividend Machines is not only good for beginners but also good for anyone who might want another perspective on the subject.
I also learned something new from Dividend Machines when I attended the class many years ago.
If AK can do it, so can you. :)
Hi JH,
ComfortDelgro owns most of SBS and VICOM.
I believe that SBS and VICOM will continue to do well.
I won't buy more of VICOM because I feel that it is too expensive now.
I won't buy SBS as I also feel it is expensive.
ComfortDelgro, however, looks cheap to me and it is probably because Mr. Market is giving too much weight to its Taxi business which is under attack.
Reference:
Special dividend from VICOM and financial freedom.
haha.. nimbled on a bit of ComfortDelgro today as i don't have any :)
Hi AK
In times like this, can talk to yourself what should we be doing now ?
ykk
Hi Ak shifu,
Has sats been on your radar? Dividends have been stable and increasing over the decade, tho might be reduced with the outbreak of the virus causing huge impact. Has dropped about 20% from the recent high, to a low of 4.06. However, I still think its a valuable company over the long term with short term headwinds as the virus continues to prolong.
Hi Invest Sg,
Please remember to wash your hands with soap and water before eating. ;p
Hi YKK,
This blog really says it all. ;p
Hi CupcakedCrusader,
Yes, I have SATS. ;)
See:
Win and win again with SRS.
hi, ak 71
How about Guocoland, recently dropped so much. Are you still holding it?
Hi Apple,
I haven't sold anything.
So, yes, I am still invested. :)
Hi Ak,
comfort delgro keep doing down. can u talk to yourself at which price to makan, snap?
Hi Good Old Days,
Nah, I don't tell people what price they should buy at.
However, I will say that there is no sign of the decline stopping and there is definitely no sign of any reversal on the horizon.
Pretty bleak looking right now.
Shortists are probably having a good time now. ;p
A page from history:
Massive short interest...
I will wait and see.
Hi,
My take is that one initates a small stake and see how it goes. Receive a dividend while holding a stake in the counter. If the fundamental is still there, one can initate more stakes when there is a mad sell-off.
WTK
thanks AK, which signals do you use to anticipate sign of reversal?
can teach?
Hi WTK,
Good that you have a plan. ;)
Hi Good Old Days,
This is the blog you want:
Technical analysis of ComfortDelgro.
Older but same same. ;)
Hi AK
May I know what are your thoughts on the latest results from Comfort Delgro? The company is handing out rebates to ease the pain but i suppose income should improve as more people return to work & school.
It is now trading at $1.38, near the low of $1.33. Do you think it is a reasonable price to accumulate this dividend machine (if it is still considered one)?
Hi Elaine,
I decided to blog about this.
See it:
COVID-19, ComfortDelgro and the new normal.
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