Wednesday, September 20, 2017

Why I Choose ComfortDelGro Over M1

This will be a follow up of my previous post as I talk about the sick Blue Chips in my portfolio.

After my last review of my portfolio, I kept thinking of what to do with my sick Blue Chips. I believe that I should reduce the number sick Blue Chips in my portfolio. Eventually, it was a decision to keep either ComfortDelGro or M1.

By the time you read this, and as the title suggest, I will have already sold off all my M1 shares.

So why did I choose ComfortDelGro over M1?

1. I have Singtel and M1. 

Since I already have 2 telecommunication companies in my portfolio, and this industry will be impacted in the future, I decided to just keep 1 of them in my portfolio.

2. ComfortDelGro is a much bigger company!

Other than market cap, ComfortDelGro is a much bigger firm than M1. ComfortDelGro owns part of VICOM and SBS Transit. But M1 is just M1.

3. ComfortDelGro has been increasing their dividend, while M1 has been reducing their dividend.

4. The Ultimate Scorecard and Full Analysis Scorecard indicate that ComfortDelGro is a better company than M1.

I will only be showing you part of the scorecard (If you are interested, do sign up here!).

ComfortDelGro Full Analysis Scorecard

M1 Full Analysis Scorecard

ComfortDelGro The Ultimate Scorecard

M1 The Ultimate Scorecard


5. M1 future is much more questionable than ComfortDelGro.

M1 is moving into the IoT industry with Nokia. This is a new industry for M1 and I am unsure of how this will impact the company's financials. 

As for ComfortDelGro, although its financials are impacted by Uber and Grab, but their business direction will still be revolving around the transport industry.

In Short

Firstly I must say I was a staunch investor of M1. Even at this point, I am still wondering if I did the right thing. However, based on my argument above, I believe I have to follow my head rather than my heart. Only time will tell if I made the right decision.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now!

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6 comments:

  1. current price $1.99 can buy?

    ReplyDelete
    Replies
    1. Hi Anonymous,

      It's a very hard question to answer. Just be prepared to average down if you buy.

      Regards,
      TUB

      Delete
  2. You have finally come out of M1 :)

    ReplyDelete
    Replies
    1. Hi Blanc Fable,

      Should have left earlier.

      Regards,
      TUB.

      Delete
  3. Anyway, I feel with Grab having billions of funding, the war is on and is very painful for Comfortdelgro shareholders.

    ReplyDelete
    Replies
    1. Hi Blanc Fable,

      Yup. Totally understand. Hopefully Comfort comes up with something extraordinary.

      Regards,
      TUB

      Delete