Jardine Cycle & Carriage

1H FY20 Result as at 30 Jun 2020
Rev USD6.5b (vs 9.1b)
Operating Profit USD0.9b (vs 1b)
Net Profit USD301m (vs 427m)
Div USD9cents (vs 18)
XD 3 Sept 2020
The interim dividend will be paid on Friday, 2nd October 2020. The Company will cease to offer payment of the interim dividend in Singapore dollars as a currency conversion service is now being offered directly by The Central Depository (Pte) Limited.
The pandemic is expected to continue to adversely impact performance for at least the rest of 2020. The Group has been focused on reducing operational and capital expenditure, managing working capital and ensuring liquidity. 

https://links.sgx.com/FileOpen/JCC_Jun%2...eID=625961
(ppt)

Wear mask and keep your social distance, everyone

The same failures are probably replicated in other developing countries like Brazil and India

Endless first wave: how Indonesia failed to control coronavirus

“We must know that our infrastructure is not ready for a pandemic like this,” said Pujo. “Other countries have heard of second waves. We’re always on the first wave.”

https://www.reuters.com/article/us-healt...SKCN25G02J

This is a substantial stimulus.

Indonesia to give tax incentives for sales of some cars

Indonesia will temporarily remove a luxury tax on sales of some cars to bolster its automotive industry, which has been badly hit by mobility restrictions to contain the coronavirus epidemic, its economic ministry said.

From March to May, the government will remove a luxury tax for sales of sedans and two-wheel drive cars with engine power below 1,500 cc, according to a statement from the coordinating ministry of economic affairs late on Thursday. The current luxury tax rates for such sales range between 10 per cent to 30 per cent.

https://www.businesstimes.com.sg/transpo...-some-cars

Understandable that OPMIs are jittery to the uncertainty of the rights issue's timing (the rights issue itself is a certainty). There are pros and cons for the OPMI if a rights issue had happened during Covid-19 but the bear market itself was too brief. On hindsight, the parent was busy with trying to restructure itself. The rights issue will probably come once JMH has comfortable cash on its balance sheet.

ANNUAL GENERAL MEETING TO BE HELD ON 27 APRIL 2021- RESPONSES TO SUBSTANTIAL AND RELEVANT QUESTIONS RECEIVED TODATE

https://links.sgx.com/FileOpen/20210421-...eID=661815

(22-04-2021, 08:31 AM)weijian Wrote: Understandable that OPMIs are jittery to the uncertainty of the rights issue's timing (the rights issue itself is a certainty). There are pros and cons for the OPMI if a rights issue had happened during Covid-19 but the bear market itself was too brief. On hindsight, the parent was busy with trying to restructure itself. The rights issue will probably come once JMH has comfortable cash on its balance sheet.

ANNUAL GENERAL MEETING TO BE HELD ON 27 APRIL 2021- RESPONSES TO SUBSTANTIAL AND RELEVANT QUESTIONS RECEIVED TODATE

https://links.sgx.com/FileOpen/20210421-...eID=661815

Indeed. Investors do not like uncertainty. I hv to cut my stakes in JCC by half and transfer to other stocks becos of the impending rights issue. I cant allocate idle capital and wait for them to announce the rights issue. On hindsight, I shld hv cut entirely and transfer to other stocks which had done much better than JCC. This rights uncertainty is weighing on its share price.

I think as OPMIs, we need to learn to be comfortable with uncertainty. Investing is making decisions under uncertainty isn't it?

Of course, most of us don't have this temperament to start with. Most OPMIs are employees and are used to certainty of a pay check at fixed intervals. However, that is not with employers or entrepreneurs, who have to get used to uncertainty (of when the next money is coming in). As a regular employee myself, I have (and still) found this transition of temperament hard. But I know what I have to achieve.

I also learned that patience is the key to everything. As others get jittery due to uncertainty and short term underperformance, maybe the alternative is to stay patient as the Taipans have done all these years. As I do not have superior stock selection capability, then I better try to lean more on patience to maximize my payout odds/ratio.

Completely true on the part of uncertainty and temperament . Even the very best run companies in the best businesses do falter from time to time. Switching in and out is akin to speculating or gambling. There is good money to be made from speculating/trading as well but that is not investment. Investment is like growing a tree. Trading is about finding trees to chop down.

Most people do have the ability to pick the right companies to invest in, the difference is patience and the ability to stomach uncertainty or even increase stakes during times of short term shocks. It takes time for a company to execute its strategies, it takes time for its balance sheet to grow,.... As the world moves faster. many investors expect results quickly, 1-2 years of under performance and they are out.

It is unlike working 9-5 where you will get paid and is a win, all the time. In investing or starting a business, it is different from working 9-5 job, losses are inevitable. In fact there is higher chance of losing from starting a business now than investing in a reputable company. I.e. you cant start a Mercedes dealership and expect to compete well against C&C, similarly you cant start a supermarket and expect to be on par with NTUC/Sheng Shiong even with ample funds.

Just to share, I dabbled in Face Mask and other items during the covid period. I spent a few K SGD on this micro project. There is some advantage in my case as I could use existing sourcing/logistics/distribution channel that are already in place so it is not a lot of effort. Also face mask are not technical and is easy. So it turned out that everyone is doing the same and doing it more aggressively. In the end prices started dropping drastically and i probably lost money on it but it is what it is. At that point of time, it was quite critical to have it, even if there is no surge in demand, the masks would be needed in the place I was working anyway. So even with some advantage on my end, money is lost. This is a small lesson learnt, never dabble into easy, common items. The harder it is to do, the better and usually more successful.

There r some uncertainty which we are not sure whether it will happen. But this uncertainty (the rights issue) is known to happen. Just dont know when. I always ask myself will I buy more of it as it gets cheaper? In this case, I wont cos each time I pump money into this stock I have to cater additonal fraction of money for its impending rights issue. It just doesnt make sense to me. I have stuck with some companies for many years. And average down whenever its price drops. One of it is Boustead and I have not sold a single share to date despite its price under performance for many years.

Indeed there is uncertainty in when the rights will happen, but certainty that it will happen. But that is beside the point.

The reasons why some are willing to buy (more) JC&C stock, and while others are not, is most probably a function of their level of certainty of JC&C's future prosperity.

I think that's how most money is made from investments; a very strong certainty of what is going to happen in the future, and betting on it. Of course, conviction is useless if your assessment of the future turns out to be wrong.

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Patience is indeed very important when playing the long game. Big money can be made if you sat on the correct stock for a long time. But it can also be(come) an impediment against decisive action.

There will be times when you will do good to cut loss and move on. And there will be times when you will do good to pay a higher price to own your desired stock.

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I have not looked closely or considered seriously JC&C. But I think if one were to buy at about current prices, it is not likely that this investor will do very badly, over the long-term.

Conviction is just as important as being right about the longer term future earnings. And chances are if you hold on to a couple of solid companies, conviction will see the investments through. It is also inevitable a few which was deemed to be great will eventually fail and enter into a permanent decline and never recover. Think SPH, once thought to be one of the best for its almost monopoly on print but it had a great run prior to the decline. Most people did see it coming and had ample time to exit.

Jardine C&C was on my watch list but I do not hold any shares of it. It would not be possible in my lifetime to accumulate a significant stake in it due to its size. Small fry = buy Small companies. But most of its business is far away from a permanent decline.