Jardine Cycle & Carriage

[Bulleye168]

Insiders (CFO & Chairman) purchases in March 2021 is sending a strong signal to market.
Insiders have 100% full control when they want rights issue (unlike SIA), so market should not be overly-worried about rights issue & miss the ASEAN (in particular Indonesia) recovery long term.

https://www.jcclgroup.com/sites/jccl-gro...21-spg.pdf

https://www.jcclgroup.com/sites/jccl-gro...21-bhb.pdf

[Bulleye168]

Please bear in mind that rights issue has 2 situations, one is beyond control & very urgent cash call else insolvent, second type is management has 100% control when they want to do right issues, no urgency no insolvent risk.

If JCCL insiders are buying at $22.77 & $22.79, its obvious signal definitely no right issue at this level. No brainer, only JCCL shortsellers will keep harping on rights issue.

[Bibi]

Please bear in mind that rights issue has 2 situations, one is beyond control & very urgent cash call else insolvent, second type is management has 100% control when they want to do right issues, no urgency no insolvent risk.

If JCCL insiders are buying at $22.77 & $22.79, its obvious signal definitely no right issue at this level. No brainer, only JCCL shortsellers will keep harping on rights issue.

What is $500k to directors in JCC? At one time, JCC represented 40% of my portfolio. Only those who invested minimal amount of JCC in their portfolio are putting rights issue as a non issue. To each his own.  

And I believe there are not many short sellers in this forum. U hv come to the wrong forum.

[weijian]

At this point of time, some of us probably have to realize a few things:

(1) The same stock with the same price, can have different utility to different people, based on differences in asset allocation, purpose and stage of life.

(2) Due to (1), there isn't a correct answer or action to take.

(3) There is no need to ask for social proof. I mean, we should try to resist it as much.

(4) Don't personalize rebuts. We are all here with an open mind to learn from each other.

@bibi, thanks for your clarification. I will personally do the same if I were you. But then again, to start with I probably wouldn't let any single stock (maybe except indexes/ETF) have the chance to occupy close to 40% of my equity portfolio. (whether is it I was averaging down OR a 10x bagger)

[Bibi]

@bibi, thanks for your clarification. I will personally do the same if I were you. But then again, to start with I probably wouldn't let any single stock (maybe except indexes/ETF) have the chance to occupy close to 40% of my equity portfolio.   (whether is it I was averaging down OR a 10x bagger)

I had done the same during the last recession 2009 to concentrate my firepower on 2 stocks.

Yes Weijian u r right. The next recession i shld focus on 3-4 stocks instead of just 2.

[weijian]

hi bibi,
I am not sure if I am right per say, as I had earlier mentioned that all of us have different motivations/background and as a result, our actions can be different but yet rational when seen in those lenses. One has to understand themselves thoroughly - the easiest person to dupe, is yourself - and really learn through practice evolution. Personally, that is the OPMI path I am taking. It suits me but I wouldn't be arrogant enough to believe it will suit others too (for example, I dont think Spore Forbes Top10 richest actually does diversify...)

Back to JCC, I have been following them since their last rights issue (which was a result of their investment in SCC) and on hindsight, that capital allocation has been value destructive. Their pending right issue is a result of their investment in Vinamilk + further investment in THACO, and things seem to be better than the 2015 experience.

Covid-19 gave me the chance to finally allocate a portion of my portfolio to JCC. But in view of the "certainly going to happen but dont know when" rights issue, I probably under allocated by ~30%. Based on their 2billion SGD debt at company level, it was ~25% of their market cap (8bil). At a ~30% discount to the 8bil market cap, we are talking about raising ~35% of market cap and that would imply either a "3 for 1" or "8 for 3" right share kind of issue.

AR2020 had the new MD (appointed in Oct 2019) talking about identifying "number of higher growth sectors in which JCC will seek opportunities to deploy capital". Well, our new MD, whom put a quarter of a million of his own money into JCC stock just last month, does know that the company is in net debt right? Would we be seeing a potential divestment in the slow growing (aka wrong investments) OR a potentially bigger rights issue than i had described earlier?

[Bulleye168]

I cannot understand, if u are so afraid of rights issue, just sell out & stop being a shareholder. As simple as that.

No need to come to forums to spread fear about rights issue.

[Bulleye168]

Only shortsellers will go to forums to spread fears about rights issue.

[Bulleye168]

Siam City Cement and Astra share price on strong recovery, insiders (CFO & CEO) buying, strong signal. Bode well for JCCL.

[weijian]

hi Bulleye168,

This is a forum for discussion on the topics as the name suggests. The discussion does not spread fear nor certain assumptions you have, actually hold. We do not condone challenges like "if are XXX, just XXX and XXX".

Please read and follow the forum rules below if you hope to continue to have a fruitful discussion on VB.com
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