Another one n half mths for wa to expire. So what happens convert to mother share or burn at 0.005 sen. Why jadi mgmt silent. Where yr responsibility to shareholder
Companies that use crude oil-related derivatives as major raw material?
There is a company which derives 98% of its revenue from export sales, ALL in USD, and also has crude-oil derived resins as its main raw material which makes up about 50% of its product selling price.
This company is super penny stock Jadi Imaging.
Jadi's shares are currently traded at around 5-6 sen level. It makes me think of Frontken and even Hevea which were traded at this level some time ago.
Jadi is an independent toner manufacturer who develops, formulates and manufactures toners for laser printers, photocopiers & multi-function printers.
Being independent means that its products are not original, they are non-genuine but are ciplak or pirated.
Jadi makes dry powder toner and sell them in bulk in aftermerket to be used in all sorts of laser printers and photocopiers such as HP, Canon, Samsung, Kyocera, Brother etc.
Is this ciplak toner against the law?
I understand that there are court cases on-going between independent & original toner & equipment manufacturers.
However, I opine that original manufacturers are not easy to win the case.
First, independent toner manufacturing is considered an environmental-friendly industry as it encourages reuse and recycle of toner cartridges.
Second, independent toner manufacturers need to formulate their own toners to make it compatible to different kinds of OEM products. They are not exactly the same quality as the original one.
Jadi enjoyed its best years in the first 5 years after listing as capacity, sales and profit increased.
Its revenue and net profit reached the peak in 2010 and went tumbling down thereafter.
This rather rapid negative turn in fortune is due to multiple factors: · Lower printing/toner demand due to sluggish global economy after 2008 crisis · Lower printing/toner demand due to proliferation of smart mobile devices · Strengthening of MYR against USD lowered its revenue as >96% sales are in USD · Strengthening of JPY against MYR increased its cost as major raw material resin was imported from Japan · Lower average selling price of toner due to oversupply in the market · Higher depreciation charge after new facilities in Klang completed in 2011
Before you want to put your money into Jadi, first you need to decide whether laser printing, photocopying and toner manufacturing is a sunset industry or not.
Everyone knows the trend now is paperless, which directly means less printing and photocopying.
More and more people are sending and sharing information online, through smartphones, tablets, PC etc. This also means less printing.
Can we come to a day when students use tablets to take exam and everyone just holds a tablet during a meeting?
Or when we buy a property and sign sales and purchase agreement, is it possible that there is no paper at all?
Nevertheless, the basic need for printing is still there especially in the business environment.
As world population grows, printing demand is also expected to increase.
In my opinion, toner manufacturing is still not yet a sunset industry now, but surely it is not going to grow by leaps and bounds.
Ink-based printing is the one that should face more challenges, which I think will be likely replaced by laser printing in the future.
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....
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Posted by Share It > 2015-07-27 16:52 | Report Abuse
DaitoRyu..may i know ur TP? :)