JTL was traded/valued at 3c range for quite longtime, SP dropped to below 1c mainly because of its debt and profitability issues. However there have been some positive changes coming one by one recently, interesting and JTL SP now looks still dirty cheap.
1 new CEO Mr Hadley just appointed, he is an expert in the industry.
2, all of existing debt been cleared ( subject to SHs approval) via the debtor accepted to convert all of $3m debt into ordinary shares at 1.5c, so short term trading target should be 1.5c (fair value, and 25% profit from today’s close price 1.2c.)
3, operation review just been done, $2.3m costs saving per year and substantial actions sounds reasonable like outsourcing the hardware part to reduce costs, overhead,office expenses and so all. Considering JTL made 142k net profit in last quarter, the huge operating cost savings could indicate that JTL could make $2.5m-3m profit per year.
4 , After all of debt converted into shares at 1.5c, JTL will have total 500m shares on issue. Given $2.5m profits per year now looks like achievable, at EPS 10, MC should be around $25 million or 5c per share, circa 4 baggers from 1.2c.
5, as new CEO can quickly work out the solution to significantly reduce operations costs, as now 3000 UK GP clinics already using JTL’s products, I deeply trust Mr Harley’s ability to further expand JTL’s business in UK & Australia as his next target.
6 I suggest JTL to issue performance shares to Mr Hadley after his cost saving plan achieved and number in this announcement is correct.
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