Jardine C&C on its slide down

Just wanted to highlight to you that Jardine Cycle & Carriage is continuing its slide down, reaching below $30 per share today. Though this is still a quite expensive stock (min $3000 investment is not something all of us can just make), but as it falls it seems to keep on getting more attractive.

(Image source: http://sgforums.com/forums/4148/topics/448537)

More detailed info on my view of Jardine Cycle & Carriage can be seen here: Jardine C&C: Possible Opportunity for Dividends (written when it was at around $33)

Not sure why the share keeps to continue its plunge (maybe some one more knowlegeble can add some info here) but the only short-term catalyst seems to be the rights issue, but currently, the price of the share is approaching that of the rights and has continued to fall at a quick pace even after the ex-rights date. So this reason alone doesn't seem to suffice as an explanation for the sudden decrease in the price of the share.

Another more long-term reason for the price decline may be the weakening Indonesian Rupiah against the Sing Dollar. The SGD/IDR seems to have increased by a fair bit in recent months and since most of Cycle & Carriage's business is done through its subsidiary, Astra which in turn in an Indonesia-based company, the weakening rupiah is not good for the company's shareholders back in Singapore. This may be a reason, but the increase in the rupiah does not seem great enough to cause the price of the share to fall to its lowest in 4 years (a far more significant weakening of the rupiah against the sing dollar occurred in 2013, but the price still traded around $35 and came back up)

The last reason that I can possibly imagine is just simply the downward trend continuing as people (especially speculators) try to cut their losses and quickly sell their shares, which creates a large supply which reduces the price unless there is going to be a surge in demand as well. If this is one of the main reasons, it would be a good indication for the value investor to start accumulating shares. But then, that'll take some of our own judgement of the situation (something I like to think comes with experience in investing), but still worthwhile looking for long-term / dividend investors who are able to hold out through short periods of storm.

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