Jobstreet to decide on future direction after market study

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KUALA LUMPUR (April 20): Pioneer local employment portal company Jobstreet Corp Bhd (JCB) which is now without a core business after completing the disposal of its online job portal late last year, is open to investing in any business sector but is particularly keen on acquiring new companies.

However, its chief executive officer (CEO) Mark Chang told reporters today that the company was adopting a conservative approach and focus on spending the next two years studying the market, before it decides its future direction.

He said the company, while not in a rush to invest in any business sector, is keen on acquisitions. It is also open to the idea of starting up a new job portal, he noted.

“We are not restricting ourselves to any sector. We want to look at as many sectors as possible and decide what makes the most sense to us in the future.

"Right now, we have the luxury, because we have some cash... We want to keep it and not be foolish and spend it unwisely. That is not who we are and this is hard-earned money. We want to invest it properly in the future.

“We told our shareholders [that] we have cash and we want to wait for the right time before we invest. The current market is relatively expensive. We want to be more conservative and be patient to acquire or partner with any company in due time,” he said after an extraordinary general meeting (EGM) today.

After completing the disposal of its online job portal to Seek Asia Investments Pte Ltd for RM1.89 billion on Nov 20 last year, JobStreet (fundamental: 1.95; valuation: 2.4)  had distributed almost all proceeds of the disposal as a special cash dividend to shareholders at RM2.65 per share.

According to its unaudited fourth quarter report for the financial year ended Dec 31, 2014, its total current assets stood at RM139.5 million, with zero borrowings.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)