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. Reason being the operator may not have so much bullets and the only way is to consolidate and push it. If others operate within the same industry have had their share push up and your Company have not move, it is normal for you to do it so. Because it's our nature to be jealous of others achievement. In share market sometimes I've seen over the years, how skillful or godly you are whether you wrote a bestseller book or whatever awards you received also useless if you don't know how to manage your emotions. For experience players, they are well aware that making bad decisions one trade will wipe you out. Sir Isaac Newton Newton lost his fortune in the stock market do you know that? He might be a genius well....but broke.

While waiting for my food to come, I update a bit on the flow of share purchased by the substantial shareholder, because people want to limit up but lazy to do homeowork. 

The following is Dato Ng Aik Kee's purchased of shares during 2020. I assume the price he bought is the lowest (assumption)

19 March 2020 - 3,600,000 shares (Average price movement is 0.025 - 0.03) RM90,000

24 March 2020 - 16,500,000 shares (Average price movement is 0.025 - 0.035) RM412,500

12 June 2020 - 5,000,000 shares (Average price movement is 0.08 - 0.09) RM400,000

16 June 2020 - 5,500,000 shares (Average price movement is 0.06 - 0.065) RM330,000

3 August 2020 - 35,000,000 shares (Average price movement is 0.065 - 0.07) RM2,275,000

So total shares bought in 2020 is 65,600,000 with average costs of RM3,507,500 assuming the lowest price he bought.

Another thing to share is the Company have 29,300,000 shares in the balance sheet. March 31 2020, the shares last closed is 3 sens.

In their Q1 report their other investement which comprises of these are RM6mil (3 sen) in which 15% is own shares, and to date they have not sold. So Q2 meaning last day is 30 June 2020, the closing price is 6 sen. From 3 sen to 6 sen, I assume your fair value gain of ivnestment is close to another RM879k gain? This is exclude your operations profit. 

Own shares: 29,300,000 @ 3 sen AT 31 March 2020 is RM879,000. So when price increased to 6 sen @ 30 June 2020 meaning it is double. So the difference is your additonal fair value gain in investment of RM879,000. 

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