Just recently, I bought some shares in ComfortDelgro and also shared that in my portfolio updates for July 2017. I have signed up for the Technical Events alerts under my POEMs account. Everyday, they will send a list of stocks that are either “bearish” or “bullish” after going through some form of automated technical analysis called Chartwhiz. Not that I am actually interested in the analysis itself, but because I am still new in the stock market so I get exposed to the different stocks and their names.
It just so happened that ComfortDelgro appeared in the “bearish” section a couple of times. Obviously, it caught my attention and I went to sgx.com to get a glimpse of how bearish it really is.
Turns out its current price of $2.32 is almost at its 52 week low price of $2.23.
Just two years ago in 2015, the highest price of ComfortDelgro climbed to the range of $3.20. That is a decrease of 30% if investors have bought CDG shares during that time.
Comparing the earnings of CDG then and now, it is undeniably more undervalued. With a P/E ratio of 15.5, PTB ratio of 1.92 and dividend yield of 4.42%, I still find it overvalued for the price that I have paid. Despite that, I felt comfortable with paying the current price now because of its strong fundamentals and a wide moat. It is so hard to find value nowadays and a wise old man once said that it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Should the price drops even lower, I have more reason to cheer and buy more.
I’m also looking forward to the earning release on 11th August! Either way it goes, I am sure that my position right now will be nothing but advantageous.
Thanks for reading!
Miss Niao xoxo