Instead of reading the garbage in the other thread I thought I would have a think about why the brakes are being put on this company everytime it looks like exploding.
Next to its peers BUB, WHA, BAL, KTD etc(who are not making much if any money at all) the share price is incredibly undervalued.Fundamentally the company looks solid, increasing revenue, now profitable (quickly) and lots of future avenues of growth.
Technically everytime since October '18 the share has looked like exploding, the sellers move in and quickly cap off any runs. This is evident by the number of candles with large, long upper wicks. See below:
Daytraders getting in and out could be one reason but I thought I would have a deeper look into another reason it might be being held down.
Looking at the recent acquisitions that JAT have made being Sunnya and Green Forest of which they own 51% and 50% respectfully, I noticed something which I don't think has had much attention in this forum. Earnout Payments.
Earnout Payment for Sunnya:
Earnout Payment for GFI:
Both are due EOFY. (3 months time)
Could this be the motivation behind the suppression of the shareprice? By keeping the price low (70% of VWAP price within the 6c area) the Sunnya and GFI owners get to gobble up even more shares at a significant discount to true value.
Anyone else think this is a possibility for why the price is low? I understand that management trust is a bit of an issue right now as well, but I don't think it is a huge concern as the past 12 months of announcements have been very solid.It also means that potentially another ~10m shares will be issued to management this FY. Not such a bad thing I don't think as it isn't going to loose hands.
Thoughts?
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Instead of reading the garbage in the other thread I thought I...
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Last
34.5¢ |
Change
-0.015(4.17%) |
Mkt cap ! $58.28M |
Open | High | Low | Value | Volume |
36.5¢ | 36.5¢ | 34.5¢ | $13.27K | 36.83K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 8948 | 34.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
35.0¢ | 9426 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
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 - 14.36pm 29/11/2024 (20 minute delay) ? |
JAT (ASX) Chart |