ComfortDelgro HUAT and is SingTel next?

Reader says...
Wa!!! Your CDG HUAT AH!!!

Blog more about it lah and we can HUAT more!!!

Many thanks!!!

AK says...
I am sure I do not have any influence over prices.

Have you looked at SingTel's share price, to be fair?

As investors for income, our job is to decide if an equity is right for our purpose and if its price is attractive enough for us buy in.





For examples, in 1Q 2018, I added to my investment in ComfortDelgro at under $2.00 a share and SingTel at under $3.40 a share.

I had no idea how the prices would move.

After buying, most of the time, we simply wait while we get paid.





We only act if Mr. Market decides to continue selling cheap (i.e. at prices we would not sell at) or if Mr. Market decides to buy from us at prices we would not buy at.

Well, if you are right, now that I have mentioned SingTel in this blog, maybe, SingTel will HUAT next week. ;p






Bad AK! Bad AK!

Related post:
AHT and CDG (SBS).

Ascendas H-Trust and ComfortDelgro (SBS).

Reader says...
Thanks for talking to yourself all these times. 

You have really helped the average Singaporeans pick up good financial tips.

I have been invested in AHT and have collected good dividends. 

I noticed that prices have dropped so far and am thinking of picking up more. 





I read through their latest announcements and I don’t see anything that indicates that their fundamentals have changed. 

However, their numbers for 2 AU Pullman hotels are not that good. 

Also the exchange rate is not in their favour. 





They also look like they may be thinking of expanding beyond Asia as per their change in mandate. 


Try as I could, I can’t figure out whether these factors would be good or bad for AHT. 

Am I missing something?







I also noticed that even though you are picking up shares in CDG, you are not doing it for SBS? 

Since CDG taxi biz is at risk, how about just their bus biz?

AK says...
AHT is in hospitality. 

There will be seasonal changes in fortunes. 

Since I am staying invested for income, as long as AHT is well managed, the bumps will smoothen out over time. 

Having more assets in different parts of the world could be a good thing because it reduces concentration risk and reliance on the A$. 

Will have to wait and see.





I find SBS' valuation a bit rich compared to ComfortDelgro. 

SBS is 75% owned by CDG. 

I think SBS will be worth more in future but in the meantime, can we accept its richer valuation and also the much lower dividend yield (~ 2%)?





In years to come, SBS could increase dividend payout to shareholders. 

Of course, then, CDG would be a major beneficiary.





Related posts:
1. Ascendas Hospitality Trust.
2. ComfortDelgro Analysis.