Jardine Group ......... Dark force raising

To make an investment, you need to make 2 very important decisions. What to invest and when to invest? If you invest in the right stock but wrong timing or right timing but a wrong counter, the outcome can be disaster. But the former is much better as you can wait out the storm. I always think the best stock to invest are those with right market trend, positive cash flow and market leader with strong moat. The best time to invest is when the company hit the speed bumps or in crisis mode.

What to invest?
1. Company with right market trend
2. Positive cash flow (not only profit/loss statement)
3. Market leader with strong moat

When to invest?
company in crisis mode

Recently, the companies in Jardine Group caught my attention. Most of the Jardine components are in hitting year low as the Hong Kong protest gaining momentum. Their business exposure to Hong Kong is quite significant especially HongKong Land with 80% asset located in Hong Kong. The Jardine Group are quite complex and most of its subsidiaries as part of the 30 companies that formed STI index components. Here is the chart that show the complex companies web in Jardine Group.

Listed companies of Jardine Group in Singapore:
1. Jardine Matheson
2. Jardine Strategic
3. Jardine C&C
4. HongKong Land
5. Dairy Farm
6. Mandarin Oriental

The focus will be the top 4 companies above. 52 weeks charts below showing all 4 companies hitting rock bottoms.

Remember, it is hard to get a good companies reasonable price due to supply and demand equations. You can only find valuation at reasonable level when the crisis hit. The opportunity is rare but it can present potential in huge capital gains when the dark cloud finally lifted. I viewed the situation in Hong Kong just a temporally setback, it will be resolved soon with time.  I have said enough and it up to you to make the best out of the opportunity out there. Good luck!

- WILLIAM CHENG

Disclaimer: All investment come with great risk and should proceed with cautious. This is not an advice to buy or sell any stock. It is important to do your own research and analysis before making any investments.