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39.5¢ jatcorp limited

Ann: Half Yearly Report and Accounts, page-44

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54 Posts.

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01/03/19

16:31

Post #: 37623789
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Originally posted by BkrDzn ↑

Originally posted by Abs006
Seeing you are an accounting guru can you explain what the results would look like if they didn't have the goodwill for GK?
Could it have been done this way for a tax benefit?
So if the next 6 months they have revenue of $30M, although I think it will be substantially more, and they don't have $20M to write-off, what would the results on the bottom line be?
The write-off means they wasted investor money to buy a business that won't perform to expectations when they bought it. It means the assumptions of revenue and/or profit growth won't eventuate as expected. Its a dud overall business, that us just mashing revenues together from other dud businesses and hyping up shareholders in the meantime to get capital out of them. To ignore the relevance of this and think the acquired revenue growth is great still is an exercise in denial.

They can generate another $30 mill of revenue again, even $40m in the next half but it doesn't change the fact management bought dud businesses as its clear in the accounts there's no scale and the growth that does come sucks cash out of the business. A working capital hole that shareholders will have to keep filling.

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Great explanation. Do you know how much they spent on the acquisition of GK?

JAT Price at posting: 5.9¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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(20min delay)
Last 39.5¢		Change -0.010(2.47%)		Mkt cap ! $58.28M

Open	High	Low	Value	Volume
40.0¢	40.0¢	39.0¢	$11.40K	28.87K

Buyers (Bids)

No.	Vol.	Price($)
2	418	39.0¢

Sellers (Offers)

Price($)	Vol.	No.
39.5¢	8296	1

View Market Depth

No.	Vol.	Price($)
10	1801171	0.056
17	2403917	0.055
3	190000	0.054
2	220000	0.053
1	50000	0.052

Price($)	Vol.	No.
0.057	95645	1
0.058	109100	2
0.059	626122	3
0.060	600000	3
0.061	371000	4

Last trade - 15.02pm 26/11/2024 (20 minute delay)

JAT (ASX) Chart