{"id":25813,"date":"2023-05-15T10:35:06","date_gmt":"2023-05-15T02:35:06","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.phillipnova.com.sg\/?post_type=market_trends&p=25813"},"modified":"2023-05-15T11:53:56","modified_gmt":"2023-05-15T03:53:56","slug":"getting-on-the-ride","status":"publish","type":"market_trends","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.phillipnova.com.sg\/market_trends\/getting-on-the-ride\/","title":{"rendered":"Getting on The Ride"},"content":{"rendered":"\r\n

By Eric Lee, Sales Director, Phillip Nova<\/strong><\/em><\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n

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The world had mostly opened up and through its annual report, we can see that Comfort Delgro\u2019s financials had improved and its gradually building its balance sheet with more cash and lower debt. Yet, its share price remained depressed and trading at 60% to pre-CoVid level.<\/p>\r\n

Unlike its competitors, Grab and Gojek, in Singapore. Comfort Delgro is profit making, while the other 2 are still burning cash at a high rate. In current high interest rates environment, the loss-making companies would have pay a higher cost to take on more debt or to raise fund from the market via private or public placement. In comparison, investing in Comfort Delgro will be a much attractive proposition.<\/p>\r\n

Recent price action of Comfort Delgro suggested some signs of market accumulation. Trade analysis had also shown institutional buying interest the past week. Based on various analysts\u2019 projection and technical analysis, the next resistance levels traders can look out for are $1.40 and $1.55. Support is at $1.10.<\/p>\r\n

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Source: MT5<\/figcaption><\/figure>\r\n

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Business Description<\/strong><\/h3>\r\n
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ComfortDelGro Corp Ltd is a passenger transportation company. The company organizes itself into seven segments; Public transport services offer the provision of bus and rail services to commuters traveling on public transport systems, Taxi rents out taxis operates taxi bureau services and ancillary advertisement income, Automotive engineering services offer the provision of vehicular maintenance and repair services and engineering services, Inspection and testing services offer the provision of motor vehicle inspection services, non-vehicle testing, and consultancy services, The driving center operates driving schools, Car rental and leasing comprise renting and leasing of cars, and Bus station generates income through commission income from fare collection.<\/p>\r\n<\/div>\r\n

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Source: Gurufocus.com<\/figcaption><\/figure>\r\n

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Positive Factors of the growth<\/strong><\/h3>\r\n
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  1. Faster-than-expected recovery of its taxi business.\r\n