STTCOMP JAT TA LONG
S.P - 5.5 cents
Extensive research has been done here.
Per their most recent quarterly report, 53.9 mill gross revenue has been received as at 31 March 2019.
If you add all the cash flow reports for the 2019 FY (Sep, Dec, Mar) the total income is 49.317 mill.
There is a variance of 4.58 mill (which is trade receivables yet to be received 30-60 days)
This in fact puts JAT in a profitable position for the quarter.
If you then look at half yearly report (December 2018) - revenue recorded in the P&L was 30.47 million, totaling a gross profit of 1.8 mill for the half year.
However by adding up the cash flow statements for Sep and Dec Qtr its 28.73 mill income
The variance is receivables. See cash flow report is just a record of the cash going in and out.
The true report is the P&L which represents the total revenue/gross profit actually derived.
The company is in fact trading at a profit at the moment. It has been most of this year!
I bet you the June quarter cash flow report they release will be similar to this cash report, being cash in cash out equal the same kind of thing, however come EOFY accounts, we will see the true gross profit margin in the P&L which should be in the 4-5 mill mark at a minimum, which makes sense. And thats even after the first quarter where they made an 8 mill loss.
Next year they should easily make around the 12-20 mill profit alone!
JAT is expected to make a total of
73 million income for the 2019 Financial Year.If you look at peers, being BUB for example, BUB's quarterly for December resulted in less sales (more than 50%), 4 million in losses, JAT made a profit that quarter (not taking into account receivables). I get that BUB has more cash on hand but they are burining through it like there is no tomorrow.
BUB's MC is currently 350 million, JAT's MC is 46 mill. Thats more than 7 x greater valuation.
Now if you look at the chart of JAT
JAT is nearing the bottom of its accumulation phase, should see a bounce from here.
Bollinger bands decreasing.
JAT's is growing exponentially, especially with continuous deals being signed. They are currently looking for a manufacturing plant to manufacture there own goods. This will cut product margin even lower which will essentially equal to more profit.
Current cash on hand is 5.3 million and barely moved this quarter, meaning that JAT is continually reinvesting the money back into the business for growth!
this is all IMO, and not financial advice. It could be more of a long term play, but at these levels definately worth a buy.
Thanks
(20min delay)