JAT 11.9% 66.0¢ jatcorp limited

The questions regarding how much profit will be made are of...

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    The questions regarding how much profit will be made are of course of interest as it's something holders and potential holders want to know, but surely we are all capable of realising that can't be included in this type of announcement. The pure and simple reason being the next entity to negotiate with JAT for a new agreement will know exactly how much leverage they have. Competitors will be notified of exactly how much margin JAT are charging and will know exactly how much to undercut them. This doesn't require any experience in business, it just requires a modicum of common sense.

    As for whether the share price moves of stays around 5c? Again I think we can all look at this realistically and say that a $2m+ 2-year Vmeat agreement isn't going to re-rate the company either. So yeah, the share price probably will still bounce around this mark.

    As for payment before shipment, whether it improves cash flow, de-risks the payment, retains title to the product in case of issue or whatever, it's better than being paid later for any or all of these reasons.
 
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