Comfort Delgro - All The King's Horses And Men Cannot Pull ComfortDelgro Together Again!

All the king's horses and men cannot pull ComfortDelgro together again! Stock rebound from UOB and Maybank Kim Eng upgrade to 2.35 was short lived. Selling resumed after the stock hit a high of 2.10. With the short covering over, and the real selling resuming, this stock is on route to 1.89.

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Comfort Delgro

Taxi revenue continue to be a drag falling to 36m YOY in 2Q17 down 11%. The company expects its bus business to improve while the rest of the business will face challenges. On the charts, the price is poised to break the key support of 2.26. A breach of 2.26 will bring the price down to 2.21 and 2.04 respectively.

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Comfort Delgro

Another victim of technology disruption. It's ripe for a breakdown of its strong support at 2.39. Below this level is heading for 2.20 and 1.98.

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Comfort Delgro

Will CDG cut cab rental to prevent their drivers from hopping to the other taxi company who have already slashed their rates. Although some research houses has argued that CDG is unlikely to cut rental because their taxi idle rates is low, this blog believe that CDG faced a real test this month when taxi drivers will decide to stay with CDG after they receive their quarterly incentives. n the chart, CDG broke its strong support 2.51 to close at 2.49. It should visit its next support at 2.44 and 2.40 shortly with eventually target at 2.18.

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Comfort Delgro

Trans-cab announced rental cut for taxi hirers in the region of 30%. Comfort will not be sitting still and the market will remain nervous about what action they will be taking. Surge in private car rental fleet coupled with new entrants collaborating with Uber and Grab will intensify the competition. This blog believe this forces of disruption has caused long term structural damage to Comfort taxi business and the share price is at an inflexion point of a long term downtrend.

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Comfort Delgro

Institution selling not over yet. Tested 2.4 six times in the last 2 weeks. Selling pressures likely to cause a breakdown below key support at 2.40. A break below 2.40 will see the stock heading for 2.34 abd 2.27 with eventual target at 2.15.

For Illustration Purpose Only

All posts and charts are for educational and illustration purposes only