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After getting two comments from readers on ComfortDelgro, I feel that it might be a good idea to publish my second reply as a short blog.
To read the comments as well as my reply to the first comment, please check the comments section of this blog:
This is my reply to the second comment:
For sure, ComfortDelgro is facing headwinds.
To stay invested or not, we will have to ask if the problems they are facing now are temporary or are they here to stay?
I am inclined to believe that the problems will not be permanent.
However, now we have the Omicron variant of COVID-19 that recently popped up.
So, it could take longer before a sustained recovery happens.
In my analysis done a few years ago, I said that even if ComfortDelgro were to shut down its taxi business, it would still be able to pay an attractive dividend.
In my analysis done a few years ago, I said that even if ComfortDelgro were to shut down its taxi business, it would still be able to pay an attractive dividend.
That was partly how I made the decision to invest in ComfortDelgro as an investor for income.
Shutting down a business if it is no longer viable is not a bad thing, generally speaking.
I like to think that we will eventually conquer the COVID-19 virus.
However, the slow rate of vaccination in many parts of the world as well as irresponsible behavior such as vaccine hesitancy is allowing the virus to mutate.
These are some root causes for uneven recovery and a delay in sustained recovery.
Still, I am staying invested in ComfortDelgro and getting paid while I wait for the eventual recovery.
Selling now feels like it could be a mistake.
Of course, I could be mistaken.
Reference:
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