Icon8888 Gossips About Stocks
(Icon) Jaks Resources (8) - Uncle Koon's Information Inaccurate
In his 10 December 2018 article, Uncle Koon mentioned the following :-
"As you know the company has a lot of unsold properties and under the current depressed market condition, it will not be able to sell its properties."
His concern is that this will drag the Group into losses for many years to come.
This is different from what the Company has been disclosing in its previous documents. For example, in FY2017 annual report, the Company said the following :
As shown above, Pacific Star has already been 83% sold as at April 2018 (when the FY2017 annual report was released). And it was the LAST property project undertaken by the Company.
17% unsold properties equals RM187 mil. As Jaks owns 50% of its property division, the net unsold amount is hence RM93.5 mil. I think it is a bit of an exaggeration to say that the Group has " a lot of " unsold properties until it will drag the Group into losses over next few years.
The Company disclosed similar information in its Rights Issue Prospectus dated 21 November 2018.
Based on the above information, my understanding is that the Group no longer has much exposure to the depressed local property industry, apart from losses related to operation of Evolve Concept Mall at approximately RM30 mil per annum and Pacific Star LADs, which should end by mid 2019 following completion of the project. Jaks has 50% exposure to these two items.
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Discussions
2 people like this. Showing 38 of 38 comments
I will buy all in if jaks stop constructions works.
Yahooooo.
Wait first,,, can believe kah jaks words???
2018-12-13 06:47
SarifahSelinder Even if 50% subscribed maknanya ada mastermind
Nyata Andy ada apply excess a lot
Harga mother kan recover immediately
Sebab this show Andy thinks Jaks the best very bright future
Andy jz crazy abt IPP tu
Andy nak control Jaks even more
13/12/2018 07:36
2018-12-13 07:38
yawn!
of course you are right coz you are so smart.
please proceed to takeover the company.
sell everything you own to buy, its a once in a lifetime opportunity.
This will multiply your wealth by 100 times or more.
2018-12-13 07:54
any project 83% sold should be viable...ok....$ 300 million unbilled sales will also create cashflows.
$ 50 million property development cost in the Balance Sheet....this represents the 17% unsold unit , and the balance in the development account from the 83% sold. LAD will expire when they are delivered.
unbilled sales/total sales , 329/915 or 65% completed as at 2017.
PDC balance of $ 50 million vs $ 300 million unbilled sales should not create a problem....may even give u positive surprise.
2018-12-13 08:52
investment in JV $ 120 million...what is that? probably have to take into account when the whole thing is finalised.
2018-12-13 08:58
the bleeding from LAD stops...only Evolve Mall is left.....Accounting losses but minus depreciation, cashflow impact should be minimum.
2018-12-13 09:00
starting next year...what u have is what u really wanted, a Company with EPCC profits from Vietnam and then 30% of an IPP.
patient la...Patience is a virtue.
stock market....they call it greater fool theory.....u either buy a share thinking they are greater fools out there.....or u sell a share thinking there are greater fools out there who couldn't see a gem and fear of the unknown., together with recency bias.
bear market, what to do? everybody fears some thing.
2018-12-13 09:07
y ks55 > Dec 13, 2018 09:12 AM | Report Abuse
To me Jaks worth only 40 sen
==========
for traders, that is a huge difference....but for genuine investors, and for those caught high...it really doesn't make any difference any more
2018-12-13 09:18
in the two years, the company successfully raised $ 250 milion.....
and another $ 70 million from the warrants ?
2018-12-13 09:48
supersaiyan was the one that gave me a long lecture when I called Airasia buy at RM1.60
he said I was stupid and naive
2018-12-13 09:54
Payables $ 800 million..what is that?
a portion is Vietnam related. no cash flow implications. It will be off set against other accounts later.
2018-12-13 10:10
Will continue to lose money until 2020 before completion of Vietnam Power plant.
No cash flow for next 2 years.
Can Vietnam Power Plant complete in time ?
Do you think it is better to wait until Vietnam Power Plant is completed before you invest ?
Invest in stock market, there is no if but must be sure.
Please note that all old projects in Malaysia secured by Jaks, if I am not mistaken all lost money.
Do not know on the new project on the highway.
2018-12-13 12:25
you can see example in the movies, 2 enemies just for show to generate business, actually best friends since childhood. Meet at nite to split profits
============================================================
billionn Maybe they two try to put up an act together? Sigh! Who knows?
13/12/2018 14:41
2018-12-13 17:25
Zhuge_Liang > Dec 13, 2018 12:25 PM | Report Abuse
No cash flow for next 2 years.
==============
woah...bear market people so creative in being negative....
that is what Wallen the Bufalo teaches u?
no cashflow until 2020 so must sell......
no cashfow maybe, but tonnes of EPCC earnings from Vietnam...its called investments......
$ 300 m in net current assets....no cash flow also can full stomach.
$ 300 million in unbilled sales...that is cashflow.....
bear markets makes people stupid
bull markets also make people stupid, just a different kind of stupidity.
2018-12-13 19:47
charles...when things are at bear market prices, there is nothing to fear except bankruptcies......
2018-12-13 19:57
As Long as you keep your exposure small, how bad can it be ?
I am not exiting
2018-12-14 07:02
After all Ang and friends got huge chunk of warrants . Don't tell me they wouldn't want to prosper through capital gain
2018-12-14 07:03
Maintain Buy call for Jaks WA
At this depressed level, risk vs reward is favourable
No risk no gain
Just remember to keep exposure small he he
2018-12-14 07:05
a Buy Call for Jaks at 45.5 sen is not too brain damaged. I can accept that based on sum of parts valuation and risked assessed future PE.
a Buy call for Jaks-Wa when 25 sen when mother is trading at 45.5 sen is too way deviant to be acceptable to society. A buy call for Jaks-Wa at 5 sen is more reasonable.
You should meditate more.
2018-12-14 07:20
Having said so. I think the downside risk of mother is rather limited now. Even the most bullish man in JAKS also scare oredi
2018-12-14 08:37
thanks brother CharlesT
good to know that you and I are friends despite occasional disagreement
2018-12-14 08:39
it is just my way of managing absolute risk
you don't need to agree with me
i3lurker a Buy Call for Jaks at 45.5 sen is not too brain damaged. I can accept that based on sum of parts valuation and risked assessed future PE.
a Buy call for Jaks-Wa when 25 sen when mother is trading at 45.5 sen is too way deviant to be acceptable to society. A buy call for Jaks-Wa at 5 sen is more reasonable.
You should meditate more.
2018-12-14 08:45
AA is not too disappointed warrants under subscribed....Jaks will not live or die because of the $ 50 million short fall.
People forget, this is not a ACE counter...this is a company with shareholder funds of $ 800 million.
2018-12-14 09:21
the only thing I don't like is that Uncle Koon is out
I mentioned before that I feel more comfortable if he is in there as he can help to monitor the 10% shareholding CEO (LOL)
I always feel uncomfortable with the Boss holding so little as they might not treat the PLC well.
but one thing positive is that through this latest rights issue, Ang and friends subscribed for more than 150 mil warrants. If they manage well and push up Jaks price, they can be handsomely rewarded also
hope this helps to mitigate the issue a bit
2018-12-14 10:08
Brilliant article icon888 I like the analysis. May I ask a small question, I have trouble adding a label of the stock to my blog. May I learn from you how to do it?
2019-01-29 20:55
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Icon888, can believe kah jaks management words, after so many putar alam from management.
2018-12-13 06:44