Yesterday, the closing price of JADA was the same as the one from Wednesday, $0.42 for a share. What is interesting, however, is that JADA has been stably accumulating value over the past two weeks, rising by 40% in that time without any considerable volume bursts and on no news, investor alerts or stock promotions.
That rise of the share price without much of buying interest could suggest that only the most informed investors are accumulating undervalued shares, or that some speculators have decided that it is high time for an optimistic press release to make the large jump.
Although long-term there doesn’t seem to be much reason for optimism, now it looks like JADA could short-term gain back some value after the frustration on the last quarter report. JADA remains in a relatively good financial condition and is still free of long-term debt, but a second look at the financials suggests that the stock is probably not undervalued.
The company has apparently not shown the expected by traders and investors progress this year. Sales and profits have been shrinking with considerable rates over the past four quarters. Further on, JADA has assets worth $86 million and almost $74 million of them consist of an acquisition deposit and some distribution rights, whose reported value may appear doubtful to investors right now.
Considering only the tangible assets of JADA and not taking into account any future improvement in the sales, the stock looks fairly priced at the moment.
