ComfortDelgro: Income Opportunity

In Uncategorized on 21/12/2011 at 6:03 am

There is a story going around that ComfortDelgro’s management sent an e-mail to SMRT’s management saying, “Thanks for the income opportunity.  Christmas came early for us. Merry Christmas and a Happy New Year. Keep on doing what you are doing. Our mgt and shareholders love it.”

Seriously, I hear that analysts are tweaking their numbers for ComfortDelgro upwards to take account of a temporary switch from trains to bus, while commuters await further developments at SMRT.

As reported earlier analysts are lowering lower revenue forecasts for SMRT to take account of the coming fines, severance packages for senior managers, and higher maintenace costs. Compared to other metro train systems, SMRT has lower maintance costs as a % of revenue. But don’t start ranting like Goh Meng Seng. Our MRT system is a baby by int’l standards. London and NY have lines going back to the late 19th century. HK’s system is older. Only Shanghai, among major int’l cities, has a system that is younger than ours.

(To see where SMRT’s incremental profits come from see slides 9, 29, 30. They come from rents and ads not from fares. Fare growth is “peanuts” see slide 8 )

SMRT shares fell 3.6% on Monday, and 1.1% on Tuesday the lowest in three months, following the three breakdowns last week. Looks like the head of communications attempt to show how he and SMRT valued shareholder failed. SVP Goh Chee Kong (retired SAF colonel and MINDEF spokesman) told us publicly that that it is better for commuters to die rather than damage SMRT property if emergency systems fail to work.  (OK, OK. I exaggerate a little, but not that much

Failed twice. He can’t prevent SMRT share price from failing, despite showing us publicly that he is a failure, morally and ethically. Hmm, wonder if his parents, wife and children still respect him?

  1. “Hmm, wonder if his parents, wife and children still respect him?”

    Doesn’t matter. With his million-dollar paycheck, he still has the “dignity” to talk cock!

    • I doubt he in that range. Where’s yr evidence he in that range? SVP not that big shot. First got CEO, then, “Directors”, then SVPs. Maybe he triple failure. Cannot earn million dollar salary, can’t get share price up and moral failure?

  2. Buy SMRT shares for a quick rebound retracement. Get some profits to offset your Xmas and New Yr binges.

    I hear gahmen going to recommend breaking up SMRT coz too-big-too-fail. Break into 2 companies — 1 in-charge of actual train operations, the 2nd one in charge of retail property. Cannot mix the 2. They gonna IPO the SMRT Mall Trust next year.

    Now if only gahmen can break itself up into 2 parts — 1 to run S’pore Inc. and the 2nd part to look after Sinkies. But if they do this, I sell all my Sinkie shares.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: