Jobstreet is a good choice?

  As a beginner I know there are a lot of thing I need to learn especially when it comes to the real practical, I may not able to follow the target or rules that I have set.

  Being independent in thinking becomes the most necessary element in investing. I admit that I can't even ignore others' opinion when I say I want to invest in Jobstreet. It might be due to the characteristics of the company that is sensitive to worldwide economy---highly depends on the economy up-and-down. World economy deeply influences Jobstreet performance.

  Ok, I am not going to invest for now and observe it for some time to make decision. Good choice?

   This is what I have done. The main point is that ROE is  keep on decreasing every year. ROE means return on shareholders' equity---How much of the return for each dollar shareholder invests in its shares. Profit increasing and the peak time shall be from 2004 until 2007. Never forget that the company intends to pay dividends out of 50% of net profit start from 2011.

  Now I am not going to talk about the figure information (your can look at it by yourselves). Let's have SWOT analysis apply in this company.

  Strength : No doubt Jobstreet is the leader of employment website in Malaysia. Malaysia continues to be the major revenue contributor to the company. Also it is expanding the business across the region in India,Japan, Hong Kong, Philippine, Singapore, Indonesia, Taiwan and Thailand. Diversification has indicated that the Management has the ambitious to become the region champion in this business.
Beside that, the brand of "Jobstreet" has been the famous name among the jobseekers who always seek for the jobs through Internet.
Branding decides a company profit sometimes, the best instance : Coca-cola has the best ever brand among its competitors, even an american is given coke and pepsi, he or she would choose coke although those drinks have not much different from taste.

  Weakness: Obviously Jobstreet is a employment website that depends heavily on technology which comes out some uncertainties in its future. Perhaps by strong branding, Jobstreet continues to be the biggest player but never forget that the company invests heavily on its technology year by year in order to maintain or improve its service. Providing services by technology is risky due to rapidly changes in technology which could impact the company investment. Since it is still in growing stage, somehow cash flow needs to be retained for technology.
Those who expect high dividend payment from Jobstreet should reconsider and think twice before you really put money into this company. Since they less borrow from the banks, the best way to raise fund is through share market.

 There is another weakness which the company could not get into the region market easily especially in Hong Kong and Taiwan, Jobstreet formed partnership with local big players by buying shares. It means that Jobstreet faces some problem of presence in those areas, it may due to their very competitive market. Also they have founded new services which is the autoworld.com where has yet to make any profit (could be dragging cash flows)

  Opportunities: Southeast Asia is one of the most fastest growing economy region among the others. Jobstreet expands its business into Southeast Asia could be the insight of the CEO. Indonesia has over 200 million population and it is still increasing, online users too. Since the young people are getting into job market, more and more demand on jobs could spur the presence of jobsteet. Also, more and more western companies are shifting their focus to Asia especially Southeast Asia. Investment in those company is keep on increasing and more branches are established, jobs are created.

Threats: No sector has little competition. In employment website sector, the services providers are increasing. This has created highly competitive market. Threaten by the increasing number of competitors, Jobstreet could be affected by "war of price" which services providers compete each other by price cutting. Profit would be affected most.
Also, the company is very sensitive to world economy as its profits showed that it is highly depending on world economy up-and-down. Please beware that this company has its own cycle which follows the trend of world economy.

In fact, no company is perfect. Indeed Jobstreet is good company but still needs times to prove its own strength whether it delivers value to shareholders and clients or not.

Talk about Jobstreet

  Almost 1 year I have studied things about the share investment in fundamental way and I tried to learn how to analyse those information that stated on the annual reports in order to find out the company's strength and weakness before I really start putting my money into the company.

    What is so special about Jobstreet? Like what Buffett's method states that we must invest in a company which has :

1.  the power to monopoly the market in long term (at least the biggest or best player in the related field) and able to survive although there were financial crisis or high market competition.
2.  the strong brand that can deeply influence the people when they make consumption decision. 
3.  the demands for the products or services consistently increase year by year or remain steady growth until the end of the world *
   *:(This is what Warren Buffett says, perhaps the he believes that those companies would not fall down as long as the people do not change their demand on it.)

   From the Buffett way, we know that there are some companies fulfill those requirements in Malaysia. As an  investor I cannot merely follow what others exactly did or do, bear in mind that we should keep our mind independence to avoid overflow information that would affect our decision making.

   Jobstreet is the best player ever among the employment website companies, in Malaysia and whole region---Southeast Asia.  Mark Chang who graduated from MIU, USA, and found MOL in 1995. Two years later, Mark sold MOL to another prominent entrepreneur Vincent Tan while at the same time Jobstreet was founded. Now Jobstreet has expanded to Singapore, Philippines, India, Bangladesh, Japan ,Thailand, and Indonesia 


   As you can see Jostreet isn't only in Malaysia but also across to the region market to make it bigger. 

    I would say that Jobstreet has changed the job-finding way in Malaysia as there are getting more and more people rely on Internet to find information, therefore finding a job through online isn't impossible. Early in 1992-1995, the age of establishments of Internet , there were other countries companies had done so before Jobstreet had so. But since Jobstreet did well, many people started involving into this business and compete each other with "war of price" strategy.

   Jobstreet still faces the challenge from the competitors in the region, but it doesn't affect much to its profitable business in Malaysia. There was one research saying there were almost 70% of the Labour force find jobs through Internet and most of them preferred Jobstreet.com. My opinion is that Jobstreet provides various type of jobs and classified it. In other words, Jobstreet is more use-friendly compared with other employment websites in Malaysia.

   Now we know that Jobstreet has established a strong brand which deeply plants into people hearts and created demand to the never-ending desire of jobseekers who always seek for the best employers or suitable positions.

   I have done some homework about Jobstreet. Continue next time.