• Still exploring new core business after assets disposal. Following completion of the disposal of assets to Seek Asia in Nov 14 for RM1.89bn and special dividend payment of RM2.65 in Dec 14, JOBST is still exploring new core business with its outstanding netcash of RM136m at end Dec 14.
• The group had also announced a 5-to-1 share consolidation exercise as part of its active capital management plan to have better control of its shares and to reduce speculative activities on its shares. Management expects the consolidation exercise to be completed in 2Q15. At present, the company is in the midst of transferring its business activities to Seek Asia, which it expects to be completed in Nov 2015. Overall, JOBST’s earnings in 2015 will be dependent upon the performance of its associated companies in Taiwan and Malaysia, quoted investments in Hong Kong, and the advertising services of Autoworld.
• Consolidate upward. JOBST’s s hare prices corrected 28% from a high of RM0.595 (29 Dec) to a low of RM0.37 (12 Jan) before ending at RM0.46 yesterday. As the stock had staged a breakout above the downtrend line resistance in early April and has continued to stay above key 10-d/-20-d/30- d/50-d/100-d/200-d SMAs, we expect prices to rise further from here.
• A decisive breakout above 0.475 (18 Mar high) will spur prices to retest RM0.505 (61.8% FR) to RM0.54 (76.4% FR) zones, before reaching our LT price target at RM0.595.
• Critical supports are located at RM0.44 (30-d & 50-d SMAs) and 0.43 (lower Bollinger band). Cut loss at RM0.42.

Source: Hong Leong Investment Bank Research - 16 Apr 2015