jum was pick of the week Maybe this is why JUM picked up recently - Invest4profit.com on 22nd Feb gave it as their pick in their free weekly email - details from this is below:
Featured today: Jumbo Corporation - JUM
Dear Investor,
Back in 1999 it was a common perception that the internet and e-commerce were taking over the world.
Following the crash of the so called 'tech boom', most investors were led to abandon the sector for good.
It was 'just a bubble' the press said, a bubble that ended forever early in 2000.
If you had given up on new sectors like e-commerce, it's important you know, the e-commerce boom is NOT over ! All the reasons for believing e-commerce would trigger profound rewards for investors are still valid.
E-commerce, or online shopping, is easier, cheaper, and offers more choices. In that light explosive growth is inevitable. Up to 80% of all business will one day take place online, and that day is coming much sooner than you probably think.
In fact, for many companies, exponential growth is already unfolding !!!
Have no doubt, this is invaluable knowledge. In the history of BOOMs, this will be one of the biggest.
So why is Invest4Profit so bullish on e-commerce ?
Of the Australian listed e-commerce stocks identified by I4P, the average 2005 growth rate will be well in excess of 100% !!!
More to the point, the said stocks are trading on a 2005 P/E of just 16 !!!
For companies posting exponential growth, a P/E of 16 represents amazing value for investors.
Put that into perspective by looking at Telstra. It's growing at just 2%, and on a forward P/E of 16.3.
It's exponential growth versus single digit growth. It's leverage to the future versus leverage to the past.
Why anyone would invest in a stock like Telstra when there are so many fantastic opportunities in e-commerce related investments is beyond comprehension.
One example of a great e-commerce stock identified by Invest4profit is Jumbo Corporation (JUM).
Jumbo Corp JUM
Investment View
In online shopping Jumbo Corporation is a first mover.
Based on a quality in-house platform, and a strategy of selling internet friendly products, in all likelihood, they can remain firmly entrenched in this niche position well into the future.
Online shopping is already a $120 billion a year global market, yet that's only about 7% of total retail sales.
Moving forward, continuing rapid growth is inevitable because online shopping is easier, cheaper and offers more choices.
Invest4Profit.com expects the e-commerce sector to grow by more than 50% per annum, and in the least until 2008.
In other words, JUM is set for exponential revenue and profit growth as e-commerce climbs the remainder of the S-curve, and JUM's revenues have already been growing at 143% a year !!
Drawing on their experience in online security and marketing, JUM is also setting up an online betting exchange.
In addition, JUM holds a 16% stake in Global Approach Limited (GLO), an online casino operator.
In other words, JUM is also well positioned in the high growth online gaming sector.
Conclusion
For the long term, JUM is a fantastic prospect for Australian investors. Exponential profit growth is unfolding now, and in all likelihood, that will continue for years.
For pure leverage to growth in e-commerce via a niche market player, Jumbo is a very sound and impressive choice.
Recommendation
It’s clear that Jumbo is on a high growth path, and the train is well and truly on track. The only question that remains is how much to pay for the stock. Keep in mind, where you buy is all important.
For the full Jumbo report and recommendation, and for other e-commerce stocks set to post explosive growth, we invite you to join Invest4profit.com.
JUM
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