Jobst broke about its strong horizontal resistance at RM1.80 earlier this month (see Chart 1). The share price, which was slowly inching higher, has now broken into a galloping run (see Chart 2). However, it should be noted that this breakout occurred after a sharp run-up at the end of February, where the stock soared from RM1.45 to RM1.80.
Chart 1: Jobst's weekly chart as at Mar 15, 2010 (Source: Tradesignum)
Chart 2: Jobst's 60-min chart as at Mar 17, 2010_9.30am (Source: Quickcharts)
Recent Corporate Development
Two recent developments could be the catalyst for the current upleg. Firstly, SEEK Ltd, the market leader amongst employment websites in Australia & New Zealand lifted its shareholding in Jobst to 21.35%. Secondly, Jobst (via its wholly-owned Singapore subsidiary, Jobstreet Singapore) bought out its JV partner, TV18's 50%-stake in the India JV, Jobstreet India.
Recent Financial Results
From the table below, we can see that Jobst's net profit fro QE31/12/2009 soared to RM6.3 million from RM1.7 million last year. The sharply lower net profit recorded in QE31/12/2008 was due to provision for diminution of value of investment of RM5.4 million. However, Jobst's net profit dropped 17.7% q-o-q on the back of a 5.6%-drop in turnover.
Table: Jobst's last 8 quarterly results
Chart 3: Jobst's last 15 quarterly results
Valuation
Jobst (at RM2.00 as at 10.45 am) is trading at a PER of 23 times (based on FY2009 EPS of 8.6 sen). At this PER multiple, Jobst is deemed fully valued.
Conclusion
Based on recent financial performance & valuation, Jobst's upside is deemed limited. However, the stock could be a trading BUY based on technical consideration.
4 comments:
Any review on MEASAT?
Thanks.
Hi Alex,
any comment about KKB and HAIO ,which prefer to buy ?
Hi Kenny,
Measat has broken above its medium-term downtrend line at about RM2.20-25 this morning. I saw the upside breakout but I did not post on it because Measat seems to rally every time Astro was suspended. After the false upside move, the stock would enter into a correction. Hopefully, this time it is really different. Its overhead resistance is at the psychological RM2.50 and thereafter at RM2.60-65 & then at RM2.90-95.
Hi phkoay,
What can one say about KKB & Haio? KKB shot up from RM3.80 to RM6.00 in just 2 weeks, i.e. from Feb 28 to Mar 11. KKB (at RM5.68 now) has a PER of 12.6 times (based on the last 4 quarters' EPS of 45 sen). at this multiple, it is fully valued. While not discounting the possibility of further upside, one would be better served by taking some profit on this stock.
Haio has gone ex the 1-for-5 bonus & 2-for-1 share split. If you have 500 shares on the last cum date on Mar 15, then you will be owning 1200 shares on Mar 18. Based on the closing price of RM10.40 on the last cum date, the theoretical price for this share is RM4.33. It has since risen another 13% to RM4.90 now. Based on this price & the adjusted EPS for the 4 quarters (QE31/1/09-QE30/10/09) of 32.8 sen, Haio is now trading at a PER of 15 times. At this multiple, I think Haio's upside is limited (say, another 10%).
My posts on these two stocks are:
http://nexttrade.blogspot.com/2010/02/kkbs-top-line-bottom-line-soared.html
http://nexttrade.blogspot.com/2009/12/haio-chalked-up-mixed-q-o-q-performance.html
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