Is JAT creating a MONSTER, page-305

I haven’t seen a case putting the risks for JAT becoming a monster success. The risks are real but IMO not as great as some other companies.

First there is the risk that all company’s exporting to china have. Changes in regulation by Chinese officials effecting Australian companies. This can be Chinese self-interest to protect their own company’s or simply a political measure to show disapproval of a particular Australian Government approach to an issue. We have seen this before and it can cause devastation across export industries.

Risks specific to dairy and other food companies in general is the potential for a factory to be banned by Chinese authorities for breaches of health regulations such as bacteria being found in products exported etc.

The risk of Chinese consumers rejecting a particular brand or product in a big way suspecting it may be a counterfeit copy produced in China. Counterfeiters target many popular products imported by China.

This is the reason I was so pleased about JAT’s move to have an agreement for certification with CCIC Australia Pty ltd. To have the ability to track product from manufacture to customer as well as assistance with certification issues is paramount to risk minimisation.

This sounds like a list of topics for down rampers to use on any company exporting to China.

All companies that we invest in on the ASX have risks associated with them. Nothing is a sure thing.

Examples of particularly high risk companies IMO are those that rely on finding a particular resource in a mining tenement. IMO agricultural pursuits that rely on good seasons and weather are the most risky. I note CLI as an example.

There also appears to be a lot of incompetent management, criminals and thieves involved in some companies and in the investment community.

If I have influenced anyone to buy shares in JAT, or any company by my postings, this has not been my intention. Do your own research and be aware of these risks and many more not mentioned here. IMO risk only what you are prepared to lose in any company on the ASX.

Sorry for this downer post and good luck to all JAT holders. I don't think I will get many likes on this one.

IMO at this stage I still think we are on a winner providing JAT keeps going in this direction without major issues.

GLTAH DYOR