JAKS-From Pupa to Butterfly

I was just looking at the history of JAKS after it took over the listing status of Wing Tiek. Very colourful development and plenty of promises afoot. A player in is own league manufacturing large diameter pipes, it is poised to play a very prominent role in the supply of pipes for the 9^th Malaysia Plan billion dollar water projects. This augurs well for its bottom line.

There is a big free float of JAKS shares; thus ensuring no “cornering’’ of the stock. The company is doing well at the company level. At the group level, it should be profitable with the tendering of the Pahang Water Transfer Project and the tendering of the Langat 2 project soon. JAKS is also an experienced water sector sub-contractor. Another plus point for the group. JAKS's potential joint ventures with the various state governments, both in new water projects and pipe replacement will ring in the mother lode of profits for JAKS.

Besides producing and marketing steel pipes, JAKS is now in the oil and gas industry, supplying 100% for export pipes and pipe fittings for the oil and gas industry of Canada and the U.S. JAK's jewel in the crown would be the world-class seamless steel pipe fittings it maufactures! Great promise here as an oil and gas player. Also it allows JAKS to increase its range of multi-sectoral pipe products as it ventures overseas.

I believe 2008 will be a bountiful year for JAKS and its shares should go up in tandem with its potential performance. Once big boys like Goldman Sachs and Templeton Funds comes in, you will surely see JAKS coming out of its box springing wildly into action. A diamond in the raw, I think the worse is behind JAKS.

JAKS is certainly moving in the right direction!

As such, I am revising my earlier view. Start buying some JAKS shares at the 80 sen price band. You can average down if the market falls.

Prospect as you pun. All the best.

Heartsong