Wednesday, September 13, 2006

JackGreen Limited (JGL)

JackGreen Limited (ASX:JGL) released their prelimi9nary results today.

They had an increase in revenue of 20% but their loss almost doubled to 7 Million dollars. Also their NTA backing fell to 2c.

This is a very poor results for the company and it will be interesting to see where it goes from here. Recently it has fallen from highs of 42c to be sitting at 22c today.

Investors should be dissapointed with the result and should be steering clear of this company until they start to make a profit.

My advice is to not buy companies which proimise to make a profit in the future as they can and do fail a lot of the time. Buy companies which are making money... Its opne of the most basic rules of investing.

JGL Recommendation : AVOID and SELL if you already own it.

Good Luck.

1 comment:

Anonymous said...

Hi Paul,

Jackgreen has done similar things before. Gone up strongly and then tanked.

When it was running up it did catch my attention. They are very ambitous and plan to expand nationwide but like you said, until they start making some money it would be prudent to stay way from them.

By the way have you had a look at Cudeco (CDU). It will have a very strong run tomorrow.

Kind Regards