Jade Art Group Inc (JADA)

[atco1982]

Let's see what we have -

- CHFI no longer a shareholder - GOOD
- A solid owner now with 41 of the shares - GOOD
- Cash ~ $11M cash flow with $8.8M in an acqusition deposit - GOOD
- Dropping customers that don't pay - GOOD
- Long term strategy has always been vertical integration to produce final products for even higher margins. Now looking for an acqusition and they have prior experience in carving - GOOD
- Quarterly revenues were reduced over the last quarter but if you can't find new customers now is the time to pursue your long term goals - GOOD
- Reports say Burma jade will be exhausted before China jade - GOOD
- 10Q due soon - ????

I expect Q1 to be a 0.05 quarter but with the move toward vertical integration I'll be happy. This is a $2.00 stock in a few quarters or sooner. After all, they have a $16B mountain. If they only bought jade at their price of $285/ton, sold the government limit of 40,000 tons/yr., and sold it at ~ $2000/ton which is the current rate, and had margins of `60%, they can make $50M/yr. or 0.60/share (if they can find customers). But vertical integration will be better without selling all of that jade to others for the higher margin products.