JYC

0.74%

$4.10 joyce corporation ltd

Well not a bad crystal ball you were looking through by the...

First 6 Last

Share
Profile

Follow
Nick_btw1

220 Posts.

19

03/03/20

08:53

Post #: 43271699
Share

Originally posted by madamswer: ↑

Whenever I come across a company where the group financials are significantly understated because one particular business unit is haemorrhaging badly, I am always willing to cobble together a spreadsheet model that looks at a few "what-if" scenarios.

In this case it's a question of what if the Lloyds auction business can be turned around, experience a cyclical recovery, be merged with a competitor, shut-down (worst-case scenario) or sold (best case scenario).

Because in the most recent half Lloyds made a Pre-Tax Loss of $1.3m.
Which represented a very material hit to the actual Pre-Tax Profit of the group, which was $3.5m.

So, if you solve the Lloyds problem, you've got a 37% instant profit uplift.

(And because Lloyds is 56%-owned by JYC, it's results are consolidated in JYC's accounts, meaning that at the level of Profit Attributable to JYC Shareholders, the percentage uplift will be even greater, probably closer to 50% by my crude estimates.)

My experience is that, for these sorts of small companies that are not well-researched, investors don't incur the effort to look much further than just the headline numbers.

But if one does, it appears that - if the logical course of action is followed in relation to the problem business in this portfolio - then the company would be trading on a P/E multiple not much above 10x.

Which is not at all bad for a company that generates ROE in the high-teens, which has very modest levels of debt and whose other businesses represent well-known, respected brands and are growing at a decent clip.

(It's a bit of a beast to buy the stock, however. Three-quarters of the issued stock is in the hands of just a few individuals and small investment entities.)

Expand

Well not a bad crystal ball you were looking through by the looks of todays sale of 10% of LLoyds . Do you by chance know what JYC paid for LLoyds and Maquarie ?

JYC Price at posting: $1.20 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

SVL

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

ARD

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

IMD

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

M2R

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

EQR

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

Bitcoin: Current State of Play & Where to Next | Swyftx

WNX

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

VTM

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Emerald & Azure score Digger & Dealer awards

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

There are more pages in this discussion • 2 more messages in this thread...

First 6 Last

Add JYC (ASX) to my watchlist

(20min delay)
Last $4.10		Change 0.030(0.74%)		Mkt cap ! $120.9M

Open	High	Low	Value	Volume
$4.07	$4.10	$4.07	$12.37K	3.023K

Buyers (Bids)

No.	Vol.	Price($)
2	1229	$4.03

Sellers (Offers)

Price($)	Vol.	No.
$4.06	1	1

View Market Depth

No.	Vol.	Price($)
1	988	3.960
1	759	3.950
1	55	3.900
1	1000	3.780
1	6437	3.750

Price($)	Vol.	No.
4.060	1	1
4.100	11647	1
4.330	1644	1
0.000	0	0
0.000	0	0

Last trade - 13.11pm 16/08/2024 (20 minute delay)

JYC (ASX) Chart

Well not a bad crystal ball you were looking through by the...

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

Bitcoin: Current State of Play & Where to Next | Swyftx

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Emerald & Azure score Digger & Dealer awards

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Well not a bad crystal ball you were looking through by the...

Top Stories

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

Bitcoin: Current State of Play & Where to Next | Swyftx

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Emerald & Azure score Digger & Dealer awards

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News