I'm pretty sure this is not there first JV - Futura Oppenheimer SE Asian partnership, with Ecolex is one already up and running. Shah is more than capable and more than likely securing partnerships in other areas.
The JAT Limited JV should be quite intriguing to the astute investor as Shah has the experience, product, manufacturing base and qualifications to go it alone, but lacks the pivotal business requirement that is to capture the vast Chinese market that JAT is already heavily growing and networked in. Business is about sales.
This is a brilliant move by both parties. JAT can enter new relationships that would previously have been unavailable with the ability to offer their growing line up. They can also protect themselves from specific segment competition like a down turn in dairy for instance.
Some male rosters on HC think that the Chinese only eat meat. Not true its estimated 5% are vegetarians. Others say there are too many things going on. Again not true.
These partnerships leverage existing supply while JAT has the sales and marketing arm already in place and experiencing explosive growth without the requirement for further resources. It's another product to give to the sales team.
The investment is in IP to protect JAT for a future takeover or if either party wants to go it alone. The investment at this time is peanuts, no capital equipment expense associated with manufacturing, no staff, no offices. Shah will do the heavy lifting JAT will write the contracts. Oppenheimer will ship the goods.
Here are some call out quotes regarding other partnerships:
"As we celebrate our 6th Birthday, we mark our short history with another milestone, the creation of Futura Oppenheimer Pte Ltd."
"leveraging our mutual capabilities, based on our shared vision of being focused on our customers, engineering individual solutions, built on great science as we share our knowledge. And doing it as quickly as we can!"
This move should embarrass both BUBS and ATM.
ATM for instance is hovering around the 10B MC and is forecast to be holding 700m in cash by July 2020 The US growth will be a tough one and yet they have stuck to their knitting essentially failing to protect themselves from the BAL takeover or diversified leveraging existing relationships. They have neglected to build a broader base outside of dairy and will hit a glass ceiling at some point. The market will respond sharply as the whole premise is built on growth and bubble.
BUBS is not even in the same league, we invest from time to time but have our concerns on this one.
JAT is doing this the other way around they are broadening the platform off the back of existing relationships, this business in many ways resembles those earlier players. Only this time around they are in the biggest markets first and growing their base offering outside of dairy.
If you paid 30cents for this share a while back you may have some regrets but in time I'm positive you will wish you had bought a lot more.
Share split cap, credit raising, shorts, impatience whatever the reason for the current price they are Chinese and have the philosophy of the bamboo tree, for five years the tree builds a massive base across an enormous area, that base is pretty much unseen below the ground. Then on day five the growth of the base is unstoppable.
The base at year two is intense and the good news is that you can already see it, if you are above the ground you can't comprehend what is going on, but you definitely will.....
Plant based meat Cosmetics Dairy products Supplements
If you don't own stock you have no reason to be here. Your comments are not welcome and have damaging effects to the weak and the timid. More often than not they are clueless unsubstantiated rants. We refuse to respond to anybody that has an opinion about something but is too fearful to buy a stock and ride it up and down.
The CR is for equipment and stock which is where all companies need to be. JAT is growing so rapidly that they are left with little other option than to raise funding this way. It's Not A Problem.
In 5 years this will morph beyond ATM or be bought by them, and to all those that dragged it to its current level I hope you failed to enter due to your lack of courage.
Anticipating Feb to be outstanding, to all you holders - congratulations.
Strategic Fund Pty Ltd
JAT Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
(20min delay)