I have monitored Jobstreet.com since 2 years back, but there's no good entry point for me. As this stock is actively monitored by most fund managers. When opportunity arise, the price is quickly taken. I can say its P/E has all the while be around 20.
But recently SEEK's offering of takeover Jobstreet Pte Ltd, which includes most of Jobstreet.com sites in Asean countries offer us an opportunity to relook.
First, the offering is around RM1,740mil, company offer around RM1,700mil payback to shareholders via dividend. According to proforma IV , it will become around 707,953,000 share outstanding after some share offering to gain back Jobstreet filipino's minority, and also some ESOS shares.
Thus, by calculation, it is near RM2.40 on this dividend paying back to shareholders after the deal goes through. Recently, it has announced another dividend of 0.5sens.
Well, the question lies in where is the golden goose? Look at what are assets left over after takeover offering by SEEK.
Do some studies, refer to pg100.
Actually, Wisma Jobstreet bring my attention most, because it is around prime area, and it is physical object I can see and touch. Wisma Jobstreet in Sultan Ismail valued RM14mil during 2011. So by dividing RM14mil/707.95mil(proforma IV S/O)=RM0.02/share
Building alone worth us the cost of investing now @ RM2.42. Look at listed companies shares they own:-
I have done some background check on their prices and also earning quality of these companies.Out of all, 104 Corporation in Taiwan provide stable profit, same to 1010 printing Group. A quick study on prices, I've valued all these companies near RM129mil. Dividing this to Proforma IV, RM0.18 is my valuation on assets. Also, 1 thing to note is Cinderella Media is undergoing some corporate action of dividend in species to distribute their 1010 printing shareholding. Also, Cinderella Media's recent profit is deteriorating as well, thus I would rather not give it any value moving forward.
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One important thing to note is company is not allowed to be involved in the same industry of Jobstreet.com-which is recruitment and some related businesses once the deal went through for 2 years. Thus the minor Jobstreet.com I think either will have to cease operation or be sold soon.
And company will fall into PN17 for sure without any core businesses while they have sometimes to find a new core businesses for the company. The name "Jobstreet" cannot be used also in future as SEEK bought the copyright of Jobstreet also.
But looking back at the founders' profile, I have confident this management can create more value to shareholders in future. And to be honest, I think there will be nothing to lose even buying at current price. If deal does not go through, we still keep a growing company, expanding into the regional almost covering whole Asia except in China which is no present yet, with some minor efforts in Japan, Thailand etc.
If deals goes through, you have the building as the back-up. If management fails to seek any core business(which I think impossible), they will sell all things and return the funds to shareholders. Building alone worth RM0.02. So it is almost risk free now.
Most encouraging part came on below announcement:-
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1673365
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1665889
"Subject to an agreement on any adjusted terms of the JobStreet SSA with SEEK Asia Investments Pte Ltd and fulfilment of all conditions precedent under the JobStreet SSA, the Proposed Disposals are expected to be completed in the third quarter of 2014."
"The
Board had on 12 May 2014 announced that the CCS is further investigating
the competitive impact of the Proposed Disposals in Singapore and
entering into a Phase 2 review.
The
CCS has on its media release dated 14 May 2014 announced that a Phase 2
review can take up to 24 weeks to complete and at the end of the Phase 2
review will decide whether to issue a favourable or unfavourable
decision.
As
at the date of this announcement, the Phase 2 review is still ongoing
and is not anticipated to be completed by 1 July 2014. Accordingly,
without prejudice to JobStreet's rights under the JobStreet SSA,
JobStreet and SEEK Asia Investments Pte Ltd are in discussions to agree
on an extension to the Long Stop Date under the JobStreet SSA and an
adjustment to the consideration given the improved operational
performance of JobStreet since a valuation of MYR1,730 million was
agreed.
Subject to agreement on any adjusted terms of the JobStreet SSA with
SEEK Asia Investments Pte Ltd and fulfillment of all conditions
precedent under the JobStreet SSA, the Proposed Disposals are now
expected to be completed in the third quarter of 2014. Further
developments on the above matter will be announced to Bursa Malaysia
Securities Berhad in due course."
