Ann: Annual Report to shareholders, page-22

Few takeaways from today's announcements:

1. I think the company is starting to recognize the importance of presentation to the ASX (in particular IF stocks). The report is cleaner in presentation and reminds me of the way BUBs presents things - a lot of images of its products. It's a start in the right direction from an optics point of view.

2. No new material information from the report which was provided close to two months ago. Will need to wait for the 4C for this quarter - which should be released in the next week before there is new info to consider.

3. I'm a big fan of the consolidation of shares. The size of the register has been an issue for quite some time now, we have seen the SP jump around a few pips with almost negligent daily volume - it's frustrating to say the least. Increasing the SP will make holders (including traders) think twice before whimsically selling shares as their holdings are smaller and worth more per unit. It wont fully negate any issues with the SP but it does at least give the SP some sort of backbone and reduces the plethora of issues surrounding an over inflated register.

4. In respect of the consolidation, clearly management thinks that the SP is undervalued - there is absolutely no reason to consolidate unless this is the case, they are trying to shift perception with clearer messaging (photos etc) and by gibing validity to a SP that has suffered from being way oversold in the past.

My parting thought:


This is the section of the report which really captures my attention.

Look at the revenue and expenses ratio relating to China.

If JAT can reduce its expenses in Australia (e.g. manufacturing costs reduced by ANMA acquisition and realizing further efficiencies) then this company has enormous potential. Forget the one-off impairment cost, once expenses are managed and reduced - hopefully in parity with Australia revenues, then China sales can become pure profit for the company....now that is both an achievable and exciting prospect.

Let's see what the 4c has in store.

IMO no reason whatsoever to sell on any of today's announcements.