# JDO - Judo Capital Holdings



## Dona Ferentes (1 November 2021)

*Judo Bank Ltd (JDO) *has risen on debut after completing its $657 million initial public offering, one of the largest floats this year.

The company, trading as Judo Capital Holdings, listed at $2.10 a share , opened at $2.20 and traded as high as $2.26 where it closed for Day One.

The company began trading with a market capitalisation of $2.3 billion, meaning it could be eligible for inclusion in the benchmark S&P/ASX 200 Index in six months time if it maintains that valuation.



> _Since day one, the Judo Bank purpose has been clear, to be Australia's most trusted SME business bank by bringing back the craft of SME relationship banking. Banking as it used to be, banking as it should be, _ said Judo Bank chief executive and co-founder Joseph Healy.





> _Australian SMEs have been unable to secure the lending they need and the service they deserve to support and grow their businesses. They have been forced into a model that required them to contact their bank via a call centre; use their homes as collateral for business loans; and contend with a _*Computer Say No *_approach to lending._


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## dyna (1 November 2021)

Forget WBC, folks. The time to get set in that thing is long gone.
I'll be keeping a beady eye on this one, though. It could be a keeper, too.


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## Dona Ferentes (1 November 2021)

_the first float in 25 years of a licensed banking institution since Macquarie listed on the ASX in 1996._

Judo chief executive Joseph Healy, whose shareholding is now worth about $73 million, said the IPO and post-float reception from investors was an endorsement of his strategy to chart a course between digital-only challengers and the old-school big four.



> “_This is a unique banking business model, there’s nothing in the market that is comparable to it,_” Mr Healy told _The Australian Financial Review _when asked to echo his IPO pitch to institutional investors.





> “_We don’t call ourselves a fintech. We’re not defined by technology. But we are undoubtedly enabled by technology._”




Judo employs more than 300 people, all of whom have equity in the company. Mr Healy said his top priority after listing was to maintain the “_founder-led_” mentality of the business as it grows.

It was founded after the Scottish-born former National Australia Bank and Citi executive came to the conclusion that most bankers had “de-skilled” and lost the ability to scrutinise small business balance sheets and apply “judgment, not formula”.

Mr Healy described the big banks’ alleged abandonment of the SME market as “market failure”. Research commissioned by Judo ....  found 48 per cent of SMEs applied for credit in the past six months but around one quarter were knocked back.

The major banks focused too much on real-estate-backed collateral and not enough on cash flow, balance sheet capital or the character of prospective borrowers, Mr Healy said.


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## dyna (3 November 2021)

Bought  ten grand worth at $2.41.
Dithering for two days, so now the wiseguy has to pay top dollar.
Jeeeebus, gimme strength. Shoulda followed the mob......into Westpac.


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## Dona Ferentes (3 November 2021)

dyna said:


> Bought  ten grand worth at $2.41.
> Dithering for two days, so now the wiseguy has to pay top dollar.
> Jeeeebus, gimme strength. Shoulda followed the mob......into Westpac.



Know what you mean.


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## KevinBB (3 November 2021)

The AFR wrote about JDO yesterday. The big line in this article for me was:
_That makes Judo the 162nd-largest public company in Australia and a likely candidate for admission to the S&P/ASX 200 index after proving its eligibility over the next two quarters._

Now, don't all go and jump in just yet. Wait until I get mine first. Once those early investors who want to get out, get out, it might prove to be a reasonable long term investment.

KH
_(don't hold any JDO, but probably will)_


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## dyna (9 November 2021)

S P down to $2 .23 today.
Back in for a second bite at $ 2.25 . So that'll be another ten grand on this horse.  That will have to do me, for now.
There were about 40 buyers lined up at $2.25 but a lot of those orders this morning, were interrupted by the 1/2 a cent ferkels.
Buggered if I know what that's supposed to achieve. You could have just waited for $ 2.23 in the afternoon.


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## UMike (12 January 2022)

Done nothing much for the last 3 months.
Almost 4-1 sellers to buyers.

I like turn around stories but it is hard to get good info on it.
Thoughts?


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## dyna (24 January 2022)

Bought ten grand worth at $2.01
Couldn't resist.
Definitely no more after this ,though.
(No more banks ,anyway)


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## UMike (24 January 2022)

Had a buy order in Friday but pulled it.
Might wait for the turn around.


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## dyna (22 April 2022)

CEO and co founder , Joseph Healy ,bought over 1/2 a million JDO shares yesterday, at $ 1.72  He holds about 35 miilion shares, now.( 3% + of issued capital )
S.P. currently $ 1.64 .


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## UMike (24 April 2022)

And I think I am Brave planning to purchase 8,000 shares.


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## divs4ever (24 April 2022)

UMike said:


> And I think I am Brave planning to purchase 8,000 shares.



that would depend  on how much  of that was your existing cash reserves  ( 2% not so bold , 80% much braver than me )

 PS i do not hold JDO

 good luck


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## UMike (3 May 2022)

UMike said:


> And I think I am Brave planning to purchase 8,000 shares.



Finally got there. Took all day for the first nibble to the last of the parcel. Must of been 20 trades in that 8g parcel.


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## divs4ever (3 May 2022)

good luck  !


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## So_Cynical (3 May 2022)

Added Judo to a watchlist today - $1.64 looking cheap.

They are offering high interest personal TD's now.


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## Dona Ferentes (11 May 2022)

So_Cynical said:


> Added Judo to a watchlist today - $1.64 looking cheap.



Maybe time to revisit.... it's been a downhill slide, a mogul slope p'raps, since listing for JDO.

Investor Day update saw JDO shares tick up a few cents, to $1.63. Key points include:
• _Judo is on-track to achieve or exceed all its prospectus FY22 metrics  
• Judo remains confident in achieving the key business metrics at-scale   
• Judo has significant positive leverage to rising interest rates   
• Current funding markets are highly favourable_

CEO Joseph Healy said  that _his small and medium enterprise customers had remained resilient throughout the pandemic, allowing Judo to meet ambitious targets, but *confidence in the longer term outlook was now waning*_*.*



> _The level of concern is growing almost week by week. The vast majority of businesses and the vast majority of consumers haven’t had to deal with an environment like the one that we are in for 30 years,”_ Mr Healy said.




Mr Healy said local businesses were bracing for a pullback in discretionary spending in Australia.


> “_As household budgets come under pressure, I anticipate [cancelling of discretionary spending] will happen here, and some sectors and businesses will be impacted by people really tightening up their spending given rising interest rates and rising inflation_,” Mr Healy said.




Mr Healy said Judo was confident its risk management processes and 2 per cent extra buffers in place to assess customers’ debt repayment capacity would stand the bank in good stead. He said Judo has “_been selective in the industries that we’ve gone into_” and had purposely avoided the construction sector.


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## SyBoo (2 June 2022)

One would think that a company like Judo would be able to eat some of the Big 4's lunch.
Although if the predicted economic headwinds turn into gale force winds, 
said lunch maybe a cheese toasty on the run, instead of a all-you-can-eat wagyu and shiraz sit down dinner ( I hear bankers like those things).

Anyways here's a chart. It's looking a bit better lately.






My nearby lawyer friend says I should include a disclaimer at the bottom, so [insert disclaimer here].


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## Telamelo (2 June 2022)

SyBoo said:


> One would think that a company like Judo would be able to eat some of the Big 4's lunch.
> Although if the predicted economic headwinds turn into gale force winds,
> said lunch maybe a cheese toasty on the run, instead of a all-you-can-eat wagyu and shiraz sit down dinner ( I hear bankers like those things).
> 
> ...



but Judo doesn't pay any dividends.. so I'd rather get any of the big 4 banks (preferably at a good discount) instead imo


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## UMike (2 June 2022)

Telamelo said:


> but Judo doesn't pay any dividends.. so I'd rather get any of the big 4 banks (preferably at a good discount) instead imo



Yet.

They are only newly listed.


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## UMike (25 August 2022)

So they beat Prospectus forecasts .... Why aren't they then close to Prospectus Share Price?

(Edit: Sorry not expecting a conclusive answer. More statement like)


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## InsvestoBoy (25 August 2022)

UMike said:


> So they beat Prospectus forecasts .... Why aren't they then close to Prospectus Share Price?
> 
> (Edit: Sorry not expecting a conclusive answer. More statement like)




Looks like they raised IPO money at ~1.7 x book value...currently trading just a tad under book value now. 

Seems right for a bank that went from 3.9c EPS to -0.8c EPS YoY.

Premium to book is reserved for banks that the market believes can get a positive ROE/ROA.


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## UMike (Friday at 10:47 AM)

Half Year Results Announcement: Tuesday 21 February 2023
Not quite sure how it has been for SME's over this past half year.
Yet they are up 14% YTD (ASX up 4.5%)

Looking at lightening my exposure to them. But (rating Agencies) consensus seems positive with them.


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