COMFORTDELGRO: Gets new substantial shareholder

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400taxis ComfortDelGro is one of largest land transport companies in the world with a global workforce, a global shareholder base and a global outlook. NextInsight file photo
Comfort Delgro

Capital Research Management Company - a unit of Capital Group of Companies - declared last night that they increased their stake in locally-listed integrated transport company Comfort Delgro last week.

Their purchase of 1.6475 million shares at $2.94 was transacted in the open market. They now hold 5.04% of Comfort Delgro. By crossing the 5% threshold, they have become a substantial shareholder of the company.

CD pulled back more than 10% after they announced their earnings in the middle of February. At these levels the stock is priced at 22.3 X current PE. Recent news surrounding an increase in local ridership, together with a likely regulatory restructuring of their bus operations, will keep this stock under the spotlight of many traders.

Although the stock pulled back from a high of $3.28 to around the $2.80 level after their results last month, the low of this move was still above their November high of $2.74, which would lend support that the uptrend move that started in January is still on track.

A firm break of the $3.01 level may lead to a retest of the $3.28 high. Conversely, support for the stock remains around the $2.80 level. Failure to hold this may see Comfort pulling back to around the $2.47 level.

Incidentally, this announcement makes it the third stake increase reported this week by significant shareholders on locally-listed blue chips, after Noble and Golden Agri reported insider buying the last two days.

Counter Name	Last	Change
AEM Holdings	2.360	0.010
Best World	2.470	0.010
Boustead Singapore	0.965	0.005
Broadway Ind	0.129	0.001
China Aviation Oil (S)	0.920	0.015
China Sunsine	0.415	0.005
ComfortDelGro	1.500	0.010
Delfi Limited	0.905	0.005
Food Empire	1.270	0.020
Fortress Minerals	0.310	-
Geo Energy Res	0.310	-
Hong Leong Finance	2.490	-0.010
Hongkong Land (USD)	3.070	0.040
InnoTek	0.525	-
ISDN Holdings	0.310	0.005
ISOTeam	0.041	-0.002
IX Biopharma	0.043	-
KSH Holdings	0.250	-
Leader Env	0.051	0.001
Ley Choon	0.046	0.003
Marco Polo Marine	0.066	0.001
Mermaid Maritime	0.141	0.003
Nordic Group	0.340	-
Oxley Holdings	0.089	-
REX International	0.137	0.001
Riverstone	0.820	0.020
Southern Alliance Mining	0.445	0.015
Straco Corp.	0.500	0.010
Sunpower Group	0.210	0.010
The Trendlines	0.069	-
Totm Technologies	0.022	-
Uni-Asia Group	0.825	-0.010
Wilmar Intl	3.480	0.030
Yangzijiang Shipbldg	1.780	0.060

Counter Name

Last

Change

AEM Holdings

2.360

0.010

Best World

2.470

0.010

Boustead Singapore

0.965

0.005