Saturday 5 May 2012

Review my choice

  About a month ago, I was determined to choose some good and undervalued companies which I thought some of them might be good enough for me to put my money in.

  As a human kind, I knew I might make mistake due to near-zero experience in choosing and investing companies. "Fortunately", it happened. I found out that Jobstreet is a good company, indeed. There is something I don't buy is that the management of the company seems like has no idea in utilising the company's cash.
 
  When I read the year 2011 annual report, it makes me disappointed that Jobstreet has invested nearly RM 11 million in Singapore listed Reits companies shares. As a growing and expanding company, every spending single sen should be looked like a big planet. I wondered if there is no other good choice for jobstreet to invest in which the REITs has neither direct nor indirect interest to the company business.

  Maybe, just maybe, from the view point of Mark Chang (Founder and CEO of Jobstreet) investing in REITs could bring infinite value to the shareholders and increase the side income of the company (an employment website company gets side income from property rental?). Or the action is just to avoid tax?

  Jobstreet has no further explanation against its investing act. This is the thing for sure he (Mark Chang) doesn't want to talk so much to avoid controversial. I doubt on his action that choosing unrelated business field to invest while the company still needs cash to maintain operations and improve technology over year-to-year.

  In case, he explains in details or otherwise this company should not be considered as my choice.

  Now I should focus on other companies.