The wheels came off the wagon for Jumbo share price as Temasek Holdings, along with several other major shareholders, sold off their stakes in Jumbo Group between 2017 and 2018. The flurry of selling activities saw Jumbo share price collapsing from a high of $0.72 in early 2017 to the current $0.40. Will Jumbo share price ever see daylight?
Listed in SGX Catalist only in 2015, Jumbo share price enjoyed a spell of bullish run between 2015 to 2017. For Jumbo share price, it seemed like the sky was the limit as the counter reached an euphoric high of $0.72. 2017 was supposed to be a milestone year for Jumbo as it celebrated its 30th anniversary. But in a twist of fate, Jumbo share price spiralled out of control after Temasek Holdings reduced its shareholdings and sold its majority stake to Ron Sim (founder of OSIM) in 2017.
As there are big boys involved in this counter, Jumbo share price is expected to be quite volatile. This is especially so given that the free float is only 22.9%. This means that any movements made by the major shareholders would have significant influence on Jumbo share price.
Jumbo share price in turmoil
As a venture capitalist, Temasek Holdings’ strategy is to invest in high growth companies and exit after a few years. Of course, Temasek Holdings do have long-term stakes in companies such as DBS, Singtel, CapitaLand, Tencent, Alibaba, etc. But these are strategic investments with enormous market scales and tremendous growth potential. While Jumbo Group do have growth potential, its revenue and profit seemed to have stalled in recent years. Thus, part of the reason for the decline in Jumbo share price could be attributed to the declining business fundamentals.
The turmoil of Jumbo share price certainly left a bitter taste among investors, who must be wondering if Ron Sim would be the next to sell down his 10% stake. This predicament of Jumbo share price is nothing new among newly listed companies. That is why I have often avoided investing in IPOs within the first five years.
Jumbo share price could have suffered a worse fate if the management had not intervened and launched a series of share buy-back in 2018. As at 31 December 2018, 741,700 shares had been held as treasury shares. The share buy-back helped to provide support for Jumbo share price.
Notwithstanding the upheaval in Jumbo share price, this counter is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
In a bid to raise financial literacy and reward SG Wealth Builder members, I am pleased to launch the Best SGX stock research campaign. Winner of this contest gets to receive cash prize of $1000!
The rationale for launching this activity is to level the playing field for retail investors, who often lack access to quality SGX stock research, especially homegrown SME stocks. Through this SGX stock research campaign, I hope to raise interest in SGX stocks among local investors, and at the same time, encourage members to share ideas and showcase their analytic skills. The winning entry will be published in this blog for learning purposes.
The winning SGX stock research article must cover a stock that is listed in Singapore Exchange (SGX) and should be engaging and interesting to read. From a story-telling perspective, you can share your best or worst SGX stock investments and what valuable lessons that can be gleaned. Ideally, the article should also contain data to back up the thesis and provides insightful analysis.
Winning prize: $1000
- This campaign is open to existing SG Wealth Builder Members only. If you are not a member, please sign up here. Email subscribers are not eligible.
- Each SG Wealth Builder member is entitled to submit one article only.
- Each article must be at least 1000 words in Microsoft Word document. Must not be published at any platform before. Any article found plagiarism would be automatically disqualified. You do not need to provide infographic or images but if you do, they must carry the applicable licenses.
- Email your submission to sgwea[email protected] from 1 April 2019 to 31 May 2019. Late submission will not be entertained.
- In your document submission, you must provide your member userid or email address.
- The winning entry will be announced on 7 June 2019 and the winner will be notified through email. He/she must give the consent for the article to be published in this blog in order to receive the cash prize.
- In the event of a lack of quality submissions, there may be no winner. However, under such circumstances, consolation prizes may be given for entries that do not meet the evaluation criteria.
Not a member yet? You may sign up to become a member of SG Wealth Builder. The full benefits and privileges of SG Wealth Builder Membership:
- Access to the latest premium articles of SG Wealth Builder
- Email notifications of latest blog articles
- Participate in SG Wealth Builder campaigns
- Request for coverage on stocks, insurance and other personal financial topics
- Comment in articles and Wealth Forum
SG Wealth Builder Membership
You may sign up for the SG Wealth Builder Membership for only $15 per month. As a member, you can access all the articles, including the premium ones.
Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.