Buying Jobstreet

This is a stock I have liked for a long while and have written extensively about. In fact, I have held the stocks via different accounts. Surprisingly, many years ago when I was introduced to this stock during the early listing days, the name of a dotcom company getting listed provides no appetite.

Surprise, surprise. Now I like the Board. I like the way the company is run. I like the management and I like the brand especially in the countries where it is especially strong in. And I like the way it conducts its listed status, fair remuneration, buyback, dividends etc. The only think I do not like is that it is highly illiquid. This is a problem which it can't do much as I see it, many investors are not very familiar with businesses like this and Jobstreet is not one company which is particularly interested to make its stock highly tradeable. In fact, the more it repurchases its stock, the lesser the number of shareholders may end up holding its stocks. I would say, it has done the right thing, hence nothing much can be done.

Jobstreet is particularly strong in Malaysia, Philippines and Singapore although it is the second largest in the latter country. For your information, below is the scenario of competitive strength of online jobs recruitment companies as presented by SEEK.com, the leader in Australia.

Ironically, SEEK.com controls a strategic 22% shareholding in Jobstreet since few years ago. Another investor in the online job recruitment which believes in companies in this space is Fidelity, whom has invested in both SEEK and Jobstreet. To add to the twist, SEEK bought a controlling stake in JobsDB in 2010. Hence, SEEK is the largest player by far in this region.

Although this space is highly fragmented, it is not an easy market to secure with the respective companies having dominated in each of its own space.

One company which could potentially disrupt the dominance of the incumbents is LinkedIN. Obviously, SEEK and Jobstreet are very much aware of it to describe LinkedIN's potential market share grab in their Annual Report. Below, is what Jobstreet has to say about LinkedIN, calling it a company with a social media twist.

As for SEEK, it is doing something to get involve in Social Media itself. See below.

Whatever it is, this is something where Jobstreet has to be really aware of as technology acceptance is something it has thrived from, and technology is something which can replace its dominance. I would not be able to comprehend the dominance of facebook until it is what it is today. Google did not see the importance of social media as well.

Anyway, I have still liked Jobstreet as it continues to grow its business especially in Philippines and it is a market where it can seriously grow in having the No 1 position. So is Indonesia. With its good sense of corporate responsibility, dominance in the market it has presence and its continuing attractiveness, I have bought 4,300 units of Jobstreet at average price of RM2.277.