I bought 5,000 shares of ComfortDelGro (CDG) today using the proceeds from the sale of FCOT in SRS.
CDG share price plunged to its lowest in the past year and breached the support of 2.13 after they announced their lustre FY2019 results on 14 Feb 2020. After my order at 2.09 was filled, it continue to dip to 2.06.
The main surprise is the cut in dividends from 6.15 cents to 5.29 cents. Factoring in the interim dividend of 4.5 cents, the total dividend for FY2019 is 9.79 cents. At 2.09, this is a 4.68% yield which is not too bad but it is probable that current dividend is not sustainable if the cashflow continues to drop below $600m for >2b outstanding shares.
I decided to take up this short term position trying to catch a possible quick rebound. If the share price plunged further, I will hold to collect FY2020 dividends and average down at below 2.00 when the opportunity arise.
Hopefully the stimulus for the rebound comes from the support package announced by the government in Budget 2020 or from a dead cat bounce.
Thanks for reading.
With Love & Peace,
Qiongster
9 comments:
The storm is already on so why get more drenching with more bad weather
The storm is expected. Be greedy when others are fearful
Most likely scenario is to drop further.Remember almost 4 plus years ago it goes down to around $1.88 when Grab and Ubercompete with CDG head on.
Drop to $1.88 then? Crawl back up to $2.50 so that it can drop again
Good call. It will rise soon as demands are strong
Gotta be patient and hold it out
Don't be so cocky.
Fear no buy. Buy no fear
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