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STI breaks out as investors baulk at JustCo&rsquo s high PE ratio
https://www.theedgesingapore.com/capital/right-timing/sti-breaks-out-investors-baulk-justcos-high-pe-ratio?utm_source=email& utm_medium=WeekendEDM& utm_campaign=singaporemarketreport& utm_source=ActiveCampaign& utm_medium=email& utm_content=Must%20Read%2018%20-%2024%20May%20%7C%20STI%20breaks%20out%20as%20investors%20baulk%20at%20JustCo%20s%20high%20PE%20ratio& utm_campaign=Weekend%20EDM%20-%2023%20May%202026
This is 60% of their allocated volume for stabilisation. Wonder the direction of travel from next week onwards...
JurongW ( Date: 22-May-2026 22:21) Posted:
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JustCo dropped sharply today because of heavy short selling pressure and weak post IPO sentiment. The stock fell below its IPO price of S$0.94, closing around S$0.78, as investors questioned its fundamentals and compared it unfavorably to WeWork&rsquo s failed model. SG investors.io Simply Wall St
📉 Key Reasons for Today&rsquo s Drop
- Short selling activity: SGX data shows JustCo was among the top counters by short‑ sell volume today, with more than 30&ndash 50% of traded volume attributed to shorts. This amplified downward pressure. SG investors.io
- IPO hangover: Despite raising S$100 million at S$0.94 per share, the debut was weak. Shares opened nearly 10% below IPO price and have struggled to recover, signaling limited institutional support. Simply Wall St
- Valuation concerns: Analysts peg JustCo at ~11x FY2025 EV / EBITDA, which many see as stretched given the flexible workspace industry&rsquo s risks. Investors remain wary of comparisons to WeWork.
- Illiquidity: Trading volumes are thin, making the stock more volatile. Simply Wall St notes JustCo shares are highly illiquid, which magnifies swings. Simply Wall St
- Lack of global coverage: No major international brokerages (e.g., JPMorgan, Goldman Sachs) have initiated coverage yet. Without foreign fund flows, local sentiment dominates.
⚠ ️ Risks & Investor Sentiment
- Industry stigma: Flexible workspace operators face skepticism after WeWork collapse.
- Execution risk: JustCo plans to expand to 78 centres in 2026, requiring strong cash flow discipline.
- Retaildriven trading: With limited institutional support, price action is vulnerable to retail sentiment and contra trades.
cut loss and move on
Close at 77.5 cents versus IPO Price of 94 cents - 18% drop on its debut!
stabilising managers all MIA.
These early investors their investment cost is much lower pre listing.
huattuatua ( Date: 22-May-2026 08:46) Posted:
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It seems this will chiong later before lunch and after, or next few days. Getting the IPO buyers to pay a higher price (IPO), and then selling back to them at a lower price (Market)...
Once time is ripe, they push up the price and unload before going back to what the market thinks the price will be.
Stock keeps topping up @ 0.855.
DYODD
Once time is ripe, they push up the price and unload before going back to what the market thinks the price will be.
Stock keeps topping up @ 0.855.
DYODD
from market ... not too promising
can break $1
looks like opening below water
blackrock one of the cornerstone invstors leh.
think too pricey for that kind of earnings,
dyodd
blackrock one of the cornerstone invstors leh.
think too pricey for that kind of earnings,
dyodd