If im not mistake... 0.24 is important resistance... Jag just break this level n now become support now... Anything above 0.24 is OK to hold for the next resistance... Follow yr trading plan ..
It's window dressing. Volume suddenly up few time last week means some of the sharks choose this stock. This stock has good has good growth for this year.
JAG still extremely undervalue and price still have plenty room to spike due to the followings:
1) Comparison among same industry counters : JAG(0024) earning per sen 1.6cents and PE 16.9 however its competitor with same industry TEXCYCL(0089) earning per sen 0.63 cents with PE 66.24. Obviously JAG is undervalue and the most cheaper counter in the recycle industry.
2) JAG director said in June 2020 company have invested capex RM3.6mil to upgrade the carbonation treatment system and this have been started operate in June 2020 as well the system and the output of the capacity will increase more 100%. This recycle business contributed 97% of JAG revenue currently. So ,if I take 2019 revenue RM139mil and the revenue will become RM276mil. Let take net profit margin of 2020 first 3 months was 5.3% ,The FY2021 annual revenue RM276 and annual net profit RM13.8mil with EPS 2.5cents. This is the minimum calculation base on recycle business only. JAG still intend to launch properties development in KOTA KEMUNING this year plus it also bidding the LSS4 solar farm project.
3) Solar farm business. JAG have rented 21years manjung land for bidding the LSS4 solar project. I believe that JAG have confident to get the award since I have check other LSS4 tenderers never have this action ( buying or renting land before award). The LSS4 award will announce by January 2021 according to the schedule. The solar business will generate future recurring income for company.
Conclusion : JAG was extremely undervalue fundamental GEMS and if ask me to give target, I will give RM0.75 based on my minimum expectation on FY21 EPS 2.5 cents with PE 30 after taking consideration of competitor Texcycle PE 66.24, the PE30 is extremely conservative and lowest among the industry player. Thus , there are huge room for the stock price to increase , don't miss the gems just buy and keep. JAG might be your wealthy god giving you big Chinese new year angpow.
JAG to double maximum carbonation treatment capacity by June 2020 -A+A KUALA LUMPUR (June 1): Total waste management outfit JAG Bhd posted a net profit of RM1.54 million for the first quarter ended March 31, 2020 (1QFY20) versus a net loss of RM6.19 million a year earlier, on higher revenue recorded by the manufacturing division and the sales of high purity precious metals.
Revenue for the quarter rose 46.3% to RM37.39 million from RM25.55 million previously. Earnings per share was 0.08 sen versus loss per share 0.41 sen earlier.
In a statement, JAG executive director Datuk Ng Meow Giak said while it has been leveraging strong commodity prices, the group has also continued its efforts to optimse efficiency of its production process.
“To this end, we have invested RM3.6 million in capital expenditure, which is expected to double our maximum carbonation treatment capacity when it is fully operational in June 2020.
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“With this, we foresee an increase in capacity, which will drive up revenue for our e-waste management division,” said Ng.
Ng said JAG kicked off the 2020 financial year on a positive note, with a marked improvement in its financial results.
“This was despite the implementation of the movement control order (MCO) on March 18 which halted our operations at the tail-end of the quarter under review."
Ng said the group has formed a crisis task-force responsible for monitoring and implementing strict safety work procedures that fully complies with the regulations set by the National Security Council (NSC) as it allows the group to operate safely and be prepared for similar situations in future.
He said JAG also remains cautiously optimistic of its outlook for the year as the Malaysian government has identified the electrical and electronics (E&E) industry as an essential sector during the MCO, reaffirming its importance to the economic eco-system.
“On the whole, the outlook for the (E&E) industry in Malaysia is encouraging on the back of the acceleration in technology.
“In fact, we believe the E&E industry, which we are dependent on for raw materials, will play a critical role in terms of structural reforms to reduce vulnerabilities in the country due to the immense opportunities in areas such as remote working, virtual learning and e-commerce.
“Although the year will be challenging, we believe we will be able to turn in a positive year, as the supply from current contracts are still being honoured by suppliers,” said Ng.
He added that JAG has a sufficient cash level of RM46 million as of March 31, which can be realised gradually to improve cash position.
Bought JAG today since JAG is expected growth in short term due to : 1) Lower PE among same industry . JAG-PE17 ,Texcycle -PE67. Very obvious JAG share price will increase to close up Texcycle PE gap.
2) Company full run on their new machine and generate more 100% capacity will definitely boost the revenue and profit in coming quarters.
3) Share NTA RM0.35 per piece . Just tell me now where can you see ACE market counter with more than 35cents NTA and it share price below 30cents? Nowadays , all the profitable ACE market counter with NTA>30 cents , price at least 50 cents above. JAG now only 26 cents , definitely cannot find in market.
4) JAG financial quarter result profit continuing increase 3 quarters consecutively.
5) based on latest quarter 0.6 cents x 4 quarters =2.4 cents EPS , JAG expected minimum target 2.4 x30PE = RM0.72. target price. PE 30 still 2 times plus lower than TEXCYCLE PE.
6) International commodity price increase currently also a booster for increasing profit margin of JAG and expected international commodity price will gradually up since so many countries in the world unlimited printing money.
This JAG extremely undervalue and expected can boom anytime in short term.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Superb99
6,603 posts
Posted by Superb99 > 2020-12-23 10:03 | Report Abuse
I will buy again if it drop below 0.25, hard to go up, selling pressure at 0.26