*Official* MasterLeong Thread - Part 2

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MasterLeong

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Noble bonds selling at near 10% yields, they are so desperate.... at such high debt cost they are doomed to fail and go bankrupt
 
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iamveryguailan

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Master Leong,

For FCT, what is a good price to enter?

I'm currently holding 6000 cmt at around 1.943 average, thinking of scooping up more at 1.9, but 1.92 also very tempting.
 
MasterLeong

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iamveryguailan said:
Master Leong,

For FCT, what is a good price to enter?

I'm currently holding 6000 cmt at around 1.943 average, thinking of scooping up more at 1.9, but 1.92 also very tempting.
Click to expand...

FCT below 2.00 ok to go in already

now 1.98 ok to go in

I previously sold 5,000 off at 2.08 but too bad now no more cash.. if now now 1.98 i sure buy FCT again
 
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MasterLeong said:
which house? bear report?
Click to expand...

never say which broker.

07/03/2017, 6 hours ago
Maybank KE Retail Research

A foreign research house believes that ComfortDelGro (CDG) could see its fortunes diminish further, when the Thomson East Coast Line (TEL) starts operating from 2019 onwards.

TEL will be the sixth MRT line in Singapore and will stretch across 31 stations from Woodlands to East Coast.

The LTA has called for bids for TEL to be submitted this quarter, and the line is expected to open in five phases from 2019 onwards. The successful bidder will operate TEL for nine years, with an option to extend for another two. It will be based on a cost-plus model and the winning bid will receive a fixed fee.

While CDG's 75% owned SBS Transit has a stronger profitability and track record reflected in the North East Line (NEL) and Downtown Line (DTL) operations, the house believes that SMRT will have the upper hand this time around due to:

1. Maintain competitive dynamics in the public transport industry
- SBS Transit currently has market leadership in bus (65% vs SMRT's 15%) and taxis (60% vs SMRT's 12%).
- Should SBS Transit win the TEL bid, competitive dynamics in the public transport space could shift substantially to the firm, giving it a 40% market share (current: 24%) based on rail length.

2. SMRT's ability to outbid SBS Transit
- Having been recently privatised, SMRT could turn more aggressive in bidding for TEL.
- SMRT's rail margin is currently estimated at ~5%, lower the SBS's Transit's 10% (NEL) and 7-8% (DTL). A margin in excess of 5% for TEL would be accretive for SMRT but dilutive for SBS.

Ultimately, as Singapore rolls out its ambitious rail infrastructure, the house sees rail ridership cannibalising into the taxi industry and result in fleet reduction, hurting CDG.

To recap, management indicated in its FY16 results that taxi revenue could decline in the following quarters, attributing weakness to 1) market maturity, 2) competition from private-hire companies and the 3) slower economy.

CDG is currently trading at 15.9x forward P/E, below its 5-year mean of 17.1x with the street continuing to be relatively bullish on its prospects. There are 12 Buy, 3 Hold and 1 Sell ratings on the stock and an average TP of $2.96.
Click to expand...
 
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MasterLeong said:
CDG is not a trading stock

this one is for long term de

they have a very good track record over the last 10 years in growing rev and earnings
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That's true.
Now the main issue is to tackle Grab and Uber and remain as profitable so the competition is tougher. Last decade or so there isn't much competition against them. Near term no upside catalyst, downside should also be limited as the other 2 company is bleeding cash.
Wanna hold long term, the price drop from $3.20 height, quite ok. 22% fall is a fair distance.

Also note that it has quite a good overseas exposure to UK+others.
 
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MasterLeong

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i only see this

CDG is currently trading at 15.9x forward P/E, below its 5-year mean of 17.1x with the street continuing to be relatively bullish on its prospects. There are 12 Buy, 3 Hold and 1 Sell ratings on the stock and an average TP of $2.96.

hahaha
 
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Posted by: MasterLeong Action 1
***My Durian Story on Investing***
if you ask me to pick 10 durians, not all 10 durians will be sweet ones
but I can tell you that on average 8 durians will be sweet and 2 will be smelly ones
same for stocks, no matter how good an investor you are.. not all your picks will turn out to be great..
..even the legendary warran buffet makes mistakes once in a while
that's why its always good to have some diversification, its not wise to put all your money into just 2-3 picks
out of my 12 stocks maybe 10 are good 2 are bad... but overall I think I should still be able to achieve my target of 5-10% yearly returns or better
cheers ^_^
 
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