So it’s fair to say that there probably hasn’t been too many...

So it’s fair to say that there probably hasn’t been too many stocks that have divided opinion as much recently as JAT. and it’s understandable, as these types of acquisitions can be tricky to research and difficult to understand.

So I thought I might join the chorus and add my 2c worth.

To start with I will disclose that I am long with average 7c and I am bullish. Short term it could be choppy and traders will do their thing, but long term I am very confident of success here.

But let’s address some of the naysayers.

First the BIG/ GSW crowd claiming it’s all a scam?? I just don’t understand how you could come to that conclusion other than you missed the trade and your FOMO is willing the stock lower. Evidence please?? The company hasn’t issued any wildly optimistic sales forecasts so isn’t GSW and isn’t creating revenue out of thin air via a shady related party finance co so not BIG. they purchased 51% of an operating company for a set price. Sure the company may end up being no good, but that’s not the same as a scam.

Second point the Swami Scam brigade will focus on (once it’s pointed out that their acquisition is actually pretty straight forward), is that, well if they paid $7mil for it and it’s now capped at $50 mil, then it must be a pump/ scam whatever other word they try to use to weasel some cheap shares.

Sorry this doesn’t stack up at all. If you buy something well and the market rerates you then kudos to you. Mining companies sometimes pay $500k for a project and 1 drill hole means its value can be 1000 times higher overnight. That’s the market my friends. The market will now value this thing and trust me it will do so efficiently and better than the Swami brigade. It’s true value is unrelated to its purchase price. Good business by JAT to get so cheap, creating shareholder value.

Next, people have looked at the number of Chinese shareholders who have come on board. Sorry, why is this an issue? Most don’t even have Australian share accounts open so can’t even sell and think about it logically, of course they want to get key players in China set in the stock, this ensures that their interests are aligned with the company. If u recall Bellamy’s initially struggled with its go to market strategy in China. They were strangers and had no one championing them. Their brand was strong but their local partners poor. JAT won’t have that issue, hence the door to the JD team has already been opened.

I could go on. This is by no means a Monty my friends but just make sure that if you are exiting (which of course is your right), you are not doing so because you’ve been convinced to for one of the above reasons.

Technically the stock may need more sideways action, and is still highly speculative so I could accept those reasons, but the ones above don’t stack up.

Look at the boss on Twitter, has been down ramping continuously since deal was announced. Yet we know he is a professional trader, who loves volume and volatility. Why is he down ramping?? Because he missed the trade and desperately wants in. But he wants in at 13c. Granted he may just get that, but his opinion should not be listened to as he missed the trade and hasn’t provided evidence of why it will fall.

In a nutshell my view on JAT is that it ticks all the boxes to be the next BUBS. if someone can provide evidence that it isn’t well fine. But everything is in place for a big 12 months.

Don’t miss out because some professional traders are trying to weasel your shares off you as cheap as possible.

Ps I feel technically a final flush out of nervous nellies will be needed before pushing higher!!