I have some good news to share.
Wait for it…
I passed my driving test!!! On the first attempt! How lucky I was to get a nice Traffic Police. Phew. I’m glad that’s over.
Oh wait, okay. I’m sorry. Perhaps this wasn’t something you wanted to hear. :p
Let’s go ahead with the REAL announcement.
While heading back home after my driving test, I opened the “My SGX” app to check on the latest stock prices. That was when I saw a big increase for ComfortDelgro’s stock price.
How much increase did I observe?
On a previous day close from $2.17 to today’s day close at $2.36. That accounts to a final increase of 8.76%.
What the heck? This isn’t right. Something must have happened.
So I went to SGX website to check out for announcements. Well, CDG has announced that they are in discussions with Uber to create some potential strategic alliances.
Is this good news to me? Hmm…
Remember me blogging about how investing in CDG is a mistake? In that post, I actually placed two links for Uber and Grab to show an estimate of how much money they are burning. How much you may be asking? I believe in the articles, the numbers have reached the B.
With this possibility for alliance though, and if both companies do work out some solution to eliminate competition, I think it would benefit both parties and regain the taxi monopoly as a whole. Uber may not be earning money, but its business model is clearly shown to be something that is working, or at least to the likes of taxi consumers. Each company has an advantage for the other to grow their business.
I just find how ironic it is when the share price increases so much despite what is presented in the announcement. I quote as below:
In the meantime, shareholders of the Company are advised to exercise caution when dealing in the shares of the Company and to refrain from taking any action in respect of their shares which may be prejudicial to their interests, and to exercise caution when dealing in the securities of the Company as there is no certainty or assurance as at the date of this announcement that any definitive agreements will be entered into in relation to the Potential Strategic Alliance. Shareholders should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers if they have any doubt about the actions that they should take.
It reminded me of what Mr. Graham said about how crowds behave unpredictably.
That being said, I’m here to sit and wait to see how the market behaves in the coming weeks.
Thanks for reading!
Miss Niao xoxo