[BCOLOR=rgba(255, 255, 255, 0)]My position? I don’t hold. I just don’t like weak yet arrogant posting from people clearly wanting to buy in.[/BCOLOR]
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[BCOLOR=rgba(255, 255, 255, 0)]Ok, I’ll work through your comments.[/BCOLOR]
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[BCOLOR=rgba(255, 255, 255, 0)]Re the go profit.... I’m not sure I understand your point? They aren’t buying gk’s past profit... they are Cleary buying to put a good product through existing proven distribution channels that will almost certainly result in increased sales.[/BCOLOR]
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“JAT have been selling milk products into China for at least 12-24months”[/BCOLOR]
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[BCOLOR=rgba(255, 255, 255, 0)]And? Is this a good or bad thing? It’s said as if it’s a negative statement but it holds no content at all?
“JAT have not been able to turn a profit over past two years despite $10 million in revenue”
And? Uber didn’t turn a profit on about $5b of revenue. Your posts is simplistic. They didn’t turn a profit as they clearly weren’t focused on profit. They were proving distribution channels and creating the relationships that would allow them to push high margin products down the line (ie infant formula). This has been a tactical play for sure. But even the act of going from $1m to $10m exceptional and shows they can build the channels they need. Your comment shows little understanding of what the intent of the company most likely was. Not to post a small profit on small turnover I highly doubt.
“JAT and Golden Koala set minmum sales goal of 500,000 tins of infant formula into china in first year for approx $10-12 million revenue. Lets say $4 million profit of which Golden Koala get 49%? = $2 million profit.[/BCOLOR]
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[BCOLOR=rgba(255, 255, 255, 0)]Not a goal. They set a hurdle for payment of a bonus to the current owner. For all we know it could be an incredibly low hurdle. But even if you are right... what’s your point? If they do 500k in year 1 (compared with 600k in 3 years prior) wont that prove they are improving the business and it was a smart alignment of product and capability? Then what, 1m the next year? 3m the year after? You quote as if people run businesses to maximise profit in year 1 and then close it down. There’s a reason why businesses in growth mode trade at multiples.
“JAT will part with $7 million dollars to Golden Koala if all targets are met”[/BCOLOR]
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[BCOLOR=rgba(255, 255, 255, 0)]Erroneous. They will part with $3.5m. Are you aware of the difference between parting with cash and allocating shares?
“Where are the significant profits going to come from to justify the predictions of a 20 cents”[/BCOLOR]
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Ok... so to justify 20c (which is a market cap of about $70m as you can’t count the milestone issues) then they probably need $2.5 to $3m at most of profit. Between the cost focus, the sales growth of existing products, the new milk formula, the new baby formula and gk... I think they might have this covered don’t you?
JAT Price at posting:
7.0¢ Sentiment: Hold Disclosure: Not Held
(20min delay)