JWI - Just Living Group (Just Water International)

[Dr_Who]

Rights issue @ 40 cents.

Anyone got shares in this pup?

I think the rights start trading on 12 nov. Anyone have a view on JWI?

[Kiwi]

I have just taken some interest in this company as the Directors have been buying up more shares.
What does this mean?

[bung5]

Been looking into this company and its ticked all the boxes but one. 10 million market cap profit of 1.7million last year. Is very tempting but the last few years revenue has been dropping. Anyone holding or has done looked deeper into the business?

[modandm]

ticked what boxes. The company is a micro-cap with no coverage. It is uninvestable imho

[Balance]

ticked what boxes. The company is a micro-cap with no coverage. It is uninvestable imho

Best time to buy if you think it is going to turn around.

That's where you get your multiple baggers like Diligent, ATM and PEB.

[bung5]

Best time to buy if you think it is going to turn around.

That's where you get your multiple baggers like Diligent, ATM and PEB.

That is the bit I guess most are waiting for before they buy

[Chaowee88]

Hello, everyone my first post. This company lacks coverage but has cut costs, improved profitability, surprised to see the share price still languishing. P/E of 4.1 currently with the share price at 10C. New CEO now with Tony now director, Ian at the helm and fair bit of restructuring, sounds like a fresh new start with a fairly new balance sheet, debt down to 12.9 million. Next year could be defining with potentially a dividend comin for the first time in 5 years (Management stated equity ratio of 40 - 60 before restarting dividenda and they a close to that).

[tim23]

You might be right but patience needed?

[Chaowee88]

The lack of coverage and no returns (dividend) to shareholders is the killer. The business itself is still solid. Last 3 years, JWI free cash flow has been around 3 million and with reduced depreciation and amortization plus interest, exchange rate (NZD appreciating now versus AUD) next year should see further NPAT growth. Should just be minor growth, but 2.5 million should be enough for resumption of small dividend. When I look at this company compared to the likes of 'Pumpkin patch', 'Teamtalk', 'Cavalier', I wonder how this is priced so low. All the other 3 are under so much pressure in terms of debt not sure why the market is paying so much for the risk. I guess it really is the coverage which is hurting this company.

[noodles]

The lack of coverage and no returns (dividend) to shareholders is the killer. The business itself is still solid. Last 3 years, JWI free cash flow has been around 3 million and with reduced depreciation and amortization plus interest, exchange rate (NZD appreciating now versus AUD) next year should see further NPAT growth. Should just be minor growth, but 2.5 million should be enough for resumption of small dividend. When I look at this company compared to the likes of 'Pumpkin patch', 'Teamtalk', 'Cavalier', I wonder how this is priced so low. All the other 3 are under so much pressure in terms of debt not sure why the market is paying so much for the risk. I guess it really is the coverage which is hurting this company.

Thanks for highlighting the company and welcome to the forum.

I would like to temper your enthusiasm with a couple of points:
1. In FY14, they paid very little tax. I think you should normalise the NPAT result to include a 28% tax rate. This will see your quoted pe rise.
2. Revenue actually dropped in FY14
3. NTA is negative
4. Debt, while not excessive and being paid off, is still preventing dividends from being paid.

I'm not sure what the catalyst is for a re-rating. Perhaps a dividend and revenue growth.

Best of luck.
noodles