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All investing involves uncertainty. Even if you have superior insights, events may still not turn out as you have expected. So the risk you expose yourself to when you buy any stock is either very high or very low, but never zero.
Because this risk cannot be eliminated, the textbook advice concerning portfolio construction will always tell you to diversify. If a single event can severely impair your portfolio -- the kind of 'go big or home' thinking -- I will consider it to be gambling. Instinctively, most investors avoid concentration, even if they do not realise/consider it to be 'gambling.'
That said, there are a lot of way to make money. And different folks have different objectives. Some treat the market like a toto/4d where they seek to make 1x big one (GME, TSLA, BTC, etc) and walk away. Some want to make long-term above-average returns, 10% p.a., something like that. Whichever it is, both are very difficult to execute. Picking the correct 'rocket ship' is difficult, and so is generating long-term returns by picking 'value' stocks. So do not be misled into thinking that it can be done because you have seen some 'guru' achieve it. There are many many who have failed for every success story. Think WB's coin flipping competition.
Coming back to JCC, I wouldn't bet that it will do badly in the long-term, and I think there's a good chance that it will do reasonably well.
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30-07-2021, 08:28 AM
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Why I like and own Jardine Cycle & Carriage
-It is a long term investment holding: They buy into stakes like Astra and now Traco in vietnam and really patiently hold while the country grows. It worked well with Astra.
-Exposure to rising middle class, as car and financial service equipment ratio grows.
-Exposure to natural resources with the Mining equipment segment
-If I understand right, the Car and Moto segment is very profitable because they just manufacture and do not have expensive R&D costs as opposed to the main car companies. They are also low cost.
-Pre covid the company was making >800m USD a year in profit, Market cap in USD is about 7B, it is still too cheap.
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(22-04-2021, 07:33 PM)Bibi Wrote: (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.
One year ago, somebody asked about the rights issue. One year later, it is no surprise that the same question pops up. But this time around, Mgt revealed more information and numbers, and of course, the Market likes such certainty...
For the time being, this level remains comfortable for us and the debt has been refinanced to 2- and 3-year bank loans
ANNUAL GENERAL MEETING TO BE HELD ON 27 APRIL 2022 - RESPONSES TO SUBSTANTIAL AND RELEVANT QUESTIONS RECEIVED TO DATE
https://links.sgx.com/FileOpen/20220420_...eID=712783
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At JC&C holding level, it has way more cash flow for servicing the loan interest. Cashflow is mainly use for 1) interest payment, 2) dividend payment & 3) investment( usually adding on to current investees). #2 & #3 are adjustable, and JC&C has been adjusting over the years. Next while JCC holding level cashflow(dividend received) is not sustainable at certain level, it is in my view sustainable because the underlying investees are all quality businesses. Ie cash will keep flowing in. So, while there is some restriction in the allocation of capital, their hands are not tied. Forget about JC&C being forced to do a right.
As Jardine SE Asia investing arm, JC&C main job is to buy a sizable interest in promising companies. Eg, their current holdings (1 Thai, 2 Indo and 3 Vie) so in my view, JC&C need to raise capital because it does not have extra capital for sizeable investment. It is a question of not if but when, and this question will be partly answered by JMH(JMH must be capital ready) since it owns 75% of JC&C. The other part is unknown, what are JC&C targets.
As for the debt being refinanced, you can actually see it in the company level B/S and notes.
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27-08-2022, 11:13 AM
(This post was last modified: 27-08-2022, 11:14 AM by weijian.)
The Taipans increase their stake in JCC with a rare 100 lots purchase on the market. The last time they did such a purchase was back in 2016.
NOTIFICATION FORM FOR SUBSTANTIAL SHAREHOLDER(S)/ UNITHOLDER(S) IN RESPECT OF INTERESTS
https://links.sgx.com/FileOpen/_2022%20A...eID=729811
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Lim & Tan weekly provides Daily Review - Fund Flow Data. Under definition, there seems to be 3 market flows - Institutional, Retail and MMAT flows.
I noted that in the week of 28 Nov (ie last week), Jardine C&C is Institution Top no 1 Net Buy of S$104.6m and Retail Top no 4 Net Buy of S$7.9m Since both Institution and Retail are net buyers, that leave MMAT as the net seller.
Who is MMAT? Anybody in the know, please advise. Thanks. Vested
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06-12-2022, 08:16 PM
(This post was last modified: 06-12-2022, 08:16 PM by weijian.)
(06-12-2022, 06:54 PM)Yoyo Wrote: Lim & Tan weekly provides Daily Review - Fund Flow Data. Under definition, there seems to be 3 market flows - Institutional, Retail and MMAT flows.
I noted that in the week of 28 Nov (ie last week), Jardine C&C is Institution Top no 1 Net Buy of S$104.6m and Retail Top no 4 Net Buy of S$7.9m Since both Institution and Retail are net buyers, that leave MMAT as the net seller.
Who is MMAT? Anybody in the know, please advise. Thanks. Vested
Did some hardcore google search before finding it...It should be pretty self explanatory from the title.
Market Maker and Active Trader
The aim of the Market Maker and Active Trader Programmes is to improve liquidity and facilitate trading at competitive bid and offer price. SGX will offer rebates or waivers on certain exchange fees such as clearing fees based on the performance of the market maker or active trader.
https://www.sgx.com/securities/trading
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06-12-2022, 09:10 PM
(This post was last modified: 06-12-2022, 09:20 PM by Yoyo.)
Hi weijian
Loud and clear. Thanks for the enlightenment. Much appreciated.
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23-01-2023, 10:52 AM
(This post was last modified: 23-01-2023, 10:52 AM by weijian.)
An increasing affluent Spore is a good tailwind to JCC's direct motor interests in S'pore.
Mercedes-Benz is best-selling car in S’pore, Tesla makes it to top 10 list in 2022
National University of Singapore Business School adjunct professor Zafar Momin said: “A luxury brand like Mercedes jumping to the No. 1 spot is testament to the growing affluence in Singapore.
“In fact, premium brands comprise the majority of the volume of the top 10 brands sold in 2022 and this percentage has been creeping up over the years.”
https://www.straitstimes.com/singapore/t...st-in-2022
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