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Monday, 2 February 2015

Prudent Management in Price Speculation - Jobstreet

Received a question on Jobstreet. It is in the KLSE Trading Platform First Page and as well as a penny stock (after ex-dividend 10/12/2014). After the 1st day closing post ex dividend @ 29 cents, it has been GORENG up till 0.48 @ 30/1/2015. Generally Jobstreet is a good company with great management team. 

After that much GORENG ACTIVITIES, announcement came out on 5 to 1 consolidation. Look at how the management announce it:

1st : Proactive Capital Management 
2nd: Institutional Investors tend to consider penny shares as too volatile.
3rd: Higher share price will result in a reduction of speculative activities.

In a nutshell, management would not like to see their company acts like a CASINO for trading basis. Jobstreet is a company without business, only assets worth NTA 0.37. Again, who are the people GORENG this counters from 0.29 till 0.48? Once the management step in to control the speculation, what do you think of the share price on Jobstreet? 

BTW, who again trading the shares and holding shares @ 0.48? 

Note: A company gets listed is due to their underlying business. Money you paid during IPO/accumulate post IPO is buying a fraction of the business at AN AGREED MARKET PRICE.
When you start to trade Penny Stocks without looking at their Financial Health Report, that is where you open up all the risks to yourself.

Please refer ARTICLE ON: 

KLSE Boom/Bust Market Cycle, How to Use Value Investing Approach In An Effective Way!

   

"When market do not talk about the value of their business and keeps on blowing the trumpet for ‘WANG AKAN DATANG’, and Bank Negara started to be cautious, personally you should take note on this. Value Oriented Fund Managers already left the market."

Left the retailers.

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