Jobst reported sharply lower net profit for 4Q2008

Jobst has just announced its results for 4Q2008 ended 31/12/2008. Its net profit dropped 85.3% q-o-q or 74.5% y-o-y to RM1.7 million while its turnover declined by 19.4% q-o-q or 4.0% y-o-y to RM22.2 million. The poorer results was due to lower sales from JOBSTREET SELECT as well as higher provision for impairment on investment in quoted securities (of RM5.4 million). Going forward, the company expects its performance to be negatively impact by the economic slowdown.



From the weekly chart below, we can see Jobst is barely holding above its long-term uptrend line, where the support is at RM1.27-30. At the close of the morning session today, Jobst is below this uptrend line (albeit on thin trading volume).


Chart: Jobst's weekly chart as at Feb 23, 2009 [12.30 noon] (source: Quickcharts)

Based on the poor financial results & deteriorating technical outlook, we should avoid Jobst for now. If the long-term uptrend line is convincingly broken, Jobst could even be a SELL, despite its promising business model.