For Part 1, Please refer to the following link, this is a continuation of the additional points I did not cover previously.
https://klse.i3investor.com/blogs/BabyAceStockAnalysis/2020-08-06-story-h1511558504-JAG_0024_Trading_Idea_for_Precious_Metal_By_No_1_Analyst_in_i3investor_.jsp
Inventories
I'll talk about the inventory this Company is holding, sometimes the annual report can give you more detailed information. Since my background come from an auditor is natural that I will look into it. I want to bring to your attention the key audit matters (KAM).
First of all need to understand what is inside the inventory, as you see copper, gold, silver and aluminium. Read the whole thing and finally you get the inventories are just these are nothing else. So in case these commodities price increase, naturally profit will increase.
Based on how the Company managed it's inventory they will somehow maintain close to RM40 - 50mil worth of inventories in every quarter. I've checked the past 2 years quarter results for the trend. So meaning they won't one time sell too much or too little. Just a balance.
Recent commentaries by the Management
My comments: Usually when you tell people about your Company's performance very rarely people use the word "bullish" unless it is really spectalular. Usually we will use optimistic, cautiously optimistic. But rarely I encounter when people use the word "bullish", because if your performance is dissapointing, then people will point their fingers to you for inacurate information. The art of using words.
The industry the Company is operating in
Based on the below 80% electronic waste and 20% industrial waste. 80% electronic waste are mainly from semi conductor industry, I think most of you are very familiar with those in technology sector, so basically those are their client's. Generally if semi conductor industry are booming or doing well, they would also do well. If you eat a lot naturally you will shit a lot, as an illustration. For industrial waste side, I'm quite familiar due to auditing experience, the margin is quite high actually. How they have control to see if the waste is fully turn into non hazardous element is they will flow it in a pond within the premise, and if no fish dies, means everything is fine. If fish dies, then means something is wrong.
Diversification into Renewable Energy
For me it's good, you won't want to rely entirely on your trading of commodities, because prices fluctuate quite frequently.
Current Outlook in Our Bursa Malaysia
Current theme play is peny stocks. Gloves still there are people inside but right now hot pick is still penny. You see penny stocks went up so much like crazy and smaller caps limit up like everyday got a few. In this scenario, either you're winning a lot of losing a lot. There is just few that falls in the middle. In counters where winner wins a lot, the opposite is loser loss a lot due to the fact the huge price fluctuation and people will usually chase when it's high. Once the stock does not have any movement they will panic and sell. Next one or two days it went back up. Really dramatic, because once they sell it went back up to their cost price. In these environment, this will always happen. Those who have patience and confidence into what they're buying naturally they will make it big. Many stocks that have been sleeping suddenly wake up and moved. I'm sure you guys saw it recently all making massive gains. Recently some of the articles I wrote have a surge in readers for example Marco which hit RM0.14 which is my TP for my client's for their retirement funds. I put RM0.125 because if I put low it will naturally hit. Soemtimes, a gauge in the number of reads of my article give me an impression what are people looking at and also the mentality of the crowd.
JAG commentaries
Recently the price have been moving around 0.075 and 0.08 and I foresee not much fluctuation will the consolidation is complete. Selldown by people who lack patience and not steady enough I've observed. Majority of players in this stock easily have 500,000 lots. I have seen movement of 10mil shares as well. I myself am generally bullish on this having 5mil shares myself, just need to be patient till consolidation complete and ready to fly. Today Poh Kong and Tomei fly again. Same goes to NICE. NICE is a loss making Company with terrible balance sheet and P&L if you check it. Still all these have been flying. It's been a very good year, I'm sure many of you agree this year have been fantastic. Penny stocks is very bullish in terms of % wise but also need to manage the downside. Quarter results coming together with share consolidation and hope that these two things can bring JAG to the moon.
Disclaimer
The research, information and financial opinions expressed in this article are purely for information and educational purpose only. We do not make any recommendation for the intention of trading purposes nor is it an advice to trade. Although best efforts are made to ensure that all information is accurate and up to date, occasionally errors and misprints may occur which are unintentional. It would help if you did not rely upon the material and information in this article. We will not be liable for any false, inaccurate, incomplete information and losses or damages suffered from your action. It would be best if you did your own research to make your personal investment decisions wisely or consult your investment advisor.
https://klse.i3investor.com/blogs/BabyAceStockAnalysis/2020-08-07-story-h1511589347-JAG_0024_Part_2_The_Rebirth_of_a_Dragon_By_Top_1_Analyst_in_i3investor_.jsp
