Jobst's bottomline slipped

Jobst has announced its results for 2Q2008 ended 30/6/2008, where its net profit dropped 13.4% q-o-q to RM9.1 million from RM10.5 million, while turnover had increased by 8% from RM25 million to RM27 million, for the same periods. When compared to the same quarter last year, net profit increased by 25% while turnover has grown by 35%. The drop in the net profit on a q-o-q basis was attributable to a loss of RM1.3 million on disposal of associate & lower pre-tax profit margin. Pre-tax profit before exceptional items (such as losses on disposal of associate) dropped from 48.7% in 1Q2008 to 44.5% in 2Q2008.



From Chart 1 below, we can see that Jobst's MACD indicator has hooked down & its share price may drift lower to test its medium-term uptrend line support at RM1.50. I believe the uptrend line support is likely to hold. In the unlikely event that this medium-term uptrend line is violated, the share price may drop to test its next uptrend line support of RM1.10. This may happen only in the event of a very sharp selldown in the market.


Chart 1: Jobst's weekly chart as at August 22nd (source: Quickcharts)


Chart 2: Jobst's monthly chart as at August 22nd (source: Quickcharts)

Based on the above, I believe Jobst is still a good medium to long-term investment. Those interested in this stock should aim to accumulate at the RM1.50 level.