if tp is 30c....the present price already over n above the targeted price....add to that the fund managers already quit buying at 26.5-32c....even at this price they are still making handsome profits!
The Edge weekly reported that the recent rally in Jobstreet's share price is attributable to expectations of a possible venture in a new core business, given its management's successful track record in founding tech start-ups. We are not surprised by the news given the decent value in Jobstreet's remaining assets. Nevertheless, we see the recent surge in share price as unsustainable due to the near-term overhang from business transition activities with SEEK Asia. Despite Jobstreet's net cash balance of over RM44m, we think it would need to seek funding to grow its remaining assets or invest in a new core business. Hence, we cut our rating from Hold to Reduce, with an unchanged target price still based on 16.8x CY16 P/E, a 30% discount to the IT services sector P/E of 24x. Switch to GHL Systems for tech sector exposure.
What Happened The Edge weekly reported that the recent surge in Jobstreet's share price is attributable to expectations of a potential venture in a new core business, given its management's successful track record in founding tech start-ups. Nevertheless, Jobstreet's CEO and founder Mark Chang was reported as saying the company is not planning any immediate announcements related to its future growth. Meanwhile, Jobstreet has a one-year commitment to help SEEK Asia Investment (SEEK) manage the transition of Jobstreet's employment portal.
What We Think We are not surprised by the news given the compelling value in Jobstreet's remaining assets. However, we see a potential near-term overhang from the business transition activities with SEEK, given that management still needs to assist in managing the portal. Apart from that, Jobstreet needs to find a new core business aside from the employment segment given that it already agreed with SEEK not to compete in the recruiting business in the coming two years and marketing and selling of vocational training and education courses through online channels in Malaysia, Singapore, Philippines, Thailand, Indonesia and Vietnam for one year. Separately, Jobstreet could grow its remaining assets by raising its associate stake in the Taiwan-listed employment service provider, 104 Corp (3130 TT, Not Rated), but it may need to raise more than RM460m to buy the remaining stake in 104 Corp. Overall, Jobstreet will need to raise funds to finance its next core business or grow its remaining assets at a faster rate.
What You Should Do We see the recent surge in share prices as not sustainable. Hence, this provides a good opportunity for investors to trim positions. Switch to GHL Systems.
Source: CIMB Daybreak - 05 January 2015, Full PDF Report
this feller long term sure can go above 0.70 cts, temporary many ppl wan to grab cheap , that is why coming out with all kind ot bad news, anyway id u dont buy big , there is nothing to worry, jes buy 5 to 10 lots , then u can sleep well.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
minloaf
4 posts
Posted by minloaf > 2015-01-04 23:58 | Report Abuse
buy this counter 2morrow morning