COMFORTDELGRO: Gets new substantial shareholder

Page 1 of 2

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	-0.030
Best World	2.480	0.010
Boustead Singapore	0.945	0.005
Broadway Ind	0.133	0.006
China Aviation Oil (S)	0.920	-
China Sunsine	0.420	-
ComfortDelGro	1.480	-
Delfi Limited	0.885	-
Food Empire	1.170	-0.110
Fortress Minerals	0.310	-
Geo Energy Res	0.290	-0.010
Hong Leong Finance	2.530	-
Hongkong Land (USD)	3.250	0.040
InnoTek	0.540	-0.005
ISDN Holdings	0.300	-
ISOTeam	0.043	-0.001
IX Biopharma	0.047	-
KSH Holdings	0.250	-
Leader Env	0.052	-
Ley Choon	0.049	-
Marco Polo Marine	0.069	-
Mermaid Maritime	0.139	-0.002
Nordic Group	0.315	-
Oxley Holdings	0.088	0.002
REX International	0.125	-0.003
Riverstone	0.775	-0.015
Southern Alliance Mining	0.485	-
Straco Corp.	0.485	-
Sunpower Group	0.215	-
The Trendlines	0.062	-0.003
Totm Technologies	0.022	-
Uni-Asia Group	0.840	-
Wilmar Intl	3.230	0.020
Yangzijiang Shipbldg	1.710	-0.010

Counter Name

Last

Change

AEM Holdings

2.360

-0.030

Best World

2.480

0.010

Boustead Singapore

0.945

0.005