**JTAN**
I've done good before on this newsletter's picks...just got their newest one in my mailbox so took a little nibble...upticks on 5k volume....float of 1.3 million with annual revs of over $60million and trading at a dime...yeeehaw
Boob
here's the writeup:
The staff of RTP proudly presents you with our third pick. This company is on target to show sales of $68 million in 1998 and has an extremely small float of only 1.3 million, which should send the price soaring on any buying. This company experienced significant losses in 1997 due to one-time write down due to an acquisition which they made. A new management team has been brought on board to bring this company back to its profitable state, and investors and insiders are believing this turnaround will happen quickly, and be successful. This company is fully reporting and recently released their second quarter financials, which showed revenue of over $17 million for the quarter. Just last week, 12 company insiders purchased preffered stock and warrants with exercise prices of over 10 times the current market value. This was our first hunch that something was up. After further researching, we are very happy with what we have uncovered and with that, are pleased to present to you our third pick: JOTAN INC (OTC:BB - JTAN). Below, you will find a summary of the past, present, and future of JTAN.
Company Name: Jotan, Inc.
Ticker: JTAN (OTC:BB)
Address: 118 West Adams Street, Jacksonville, FL 32202
Phone: (904) 355-2592
Fax: (904) 353-0075
Industry: Containers & Packaging
Employees: 240
Shares Outstanding: 21.4 million
Float: 1.3 million
Fully Reporting: YES
52-week High: $1.00
52-week Low: $0.04
Current Price: $0.07 x 0.085
Avg. Volume: 1k
Jotan is a distributor of packaging and shipping supplies with twenty distribution centers and two production facilities located throughout the United States. The Company sells to a broad customer base including industrial, moving and storage, air freight, and perishable food market segments. Prior to March providing "Just On Time As Needed" (JOTAN) delivery service for its industrial customers. For the three months ended 3/98, revenues rose from $6.8 million to $15.9 million. Net loss applicable to Common totaled $1.8 million, up from $584 thousand. Results reflect acquisitions, offset by costs associated with the Southland acquisition.
JTAN's revenues have increased over 500% since 1996. In 1996, they had sales of just over $10 million and for the first SIX MONTHS of 1998 have already surpassed the $33 million mark (on pace for $68 million this year).
New management have recently taken over with the plan of turning this company into a profitable corporation. This is a long term stock and if they are successful with their plan, we feel this could be a 100bagger in the long term. Under the old management, JTAN has lost money since 1996, and suffered a huge loss in 1997 from One-time write downs due to their Southland acquisition. The new management has already started to make changes to completely turn around this company; revenues this year should exceed $3.00 per share, and as soon as JTAN shows even the slightest profits, the stock will absolutely explode.
There is a large investor group in Texas who is a major investor in JTAN, and spoke with us telling us that he believes the company will turnaround under this new management. With revenues of over $60 million and the direction the company is going, this stock should not be anywhere near as low as it is right now (approx. $0.10) in our opinions. During the past week, JTAN insiders have been buying the rights to JTAN warrants with exercise prices over $1.00. We feel they know what's going on or else why would they buy rights to buy the stock at 10 times its current market value? We feel it's only a matter of time before JTAN turns around, and it's stock price will be the next to follow.
Below is excerpts from an article printed in a Florida newspaper dealing with the turnaround in progress of JTAN:
Wednesday, July 22, 1998
'Holes' are being fixed at Jotan
''The holes in the hull are slowly being repaired,'' Minor told shareholders at the company's annual meeting yesterday.
Minor, a self-described turnaround consultant and crisis manager, was brought in to run the Jacksonville-based distributor of packaging and shipping supplies in January. ''It is my opinion that the turnaround has begun,'' he said.
Jotan was a relatively small company with sales of $11.7 million in 1996, but it grew significantly with the March, 1997 acquisition of Southland Holding Co., which had produced $62 million in revenue in 1996.
Thank you and good luck to everyone,
Staff of RTP
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