JB&ZJMY HLDG CO IN (OTCMKTS:JBZY) On To New Markets and Highs

Any market player must have seen the price rally that happened last week pertaining to shares of JB&ZJMY HLDG CO IN (OTCMKTS:JBZY).Over this period, the company’s shares rose from trading just shy of $0.03 to highs of $0.16, an over 500% increase. The increase was coupled with a surge in the trading volumes which spiked to over 50 million shares being traded as seen in the chart below: JBZY Daily ChartSuch a rally would generally be exhibited in a company that is doing something right, be it that the market has received news that would affect their value positively or that they have joined with another entity that brings with it a solid financial or operational base.The latter is true for JBZY.In April this year, JBZY was acquired by a Chinese based battery manufacturer, Ji Ming Yang Amperex Technology Limited (Ji Ming Yang). However, it wasn’t until October that they changed their name and ticker symbol for trading in the market with the market being quite silent about their view towards the move given that trading volumes dropped to significantly over this period as share prices fell.The recent increase in volumes and prices presents the first time the market has made a significant move since then.This piece will review the company and try to assess how the new move as well as the change in the strategy of the company, caused by the merger, will affect the future of JBZY. Finally, we will assess how their financial position has been in the past and use it as a base in assessing the expected path the company will take.JBZY: Past to PresentDolat Ventures, Inc was incorporated in Nevada on April 13, 2006 with the intent to engage in the business of mineral property exploration. It since then made several acquisitions within the industry which enabled it engage in several projects.On December 2015, the board of directors, agreed to acquire Patriot Development Corporation in a venture meant to get it into the real estate market. The venture led to JBZY having 18 properties located throughout Massachusetts and Connecticut, which were valued at over $2.6 million. However, these operations ceased in December of the following year.Finally, the directors of the company opted to engage in a space that they believed would have the best prospects for them given its industry. To do this, they made one final move.On December 2, 2016, the Company merged with a Chinese company, Ji Ming Yang Amperex Technology Limited, that produces electric batteries to be used for electric passenger vehicles. This move resulted in the name change as well as a change in their ticker symbol from DOLV to JBZY.Given the nature of this move, it is important to have a look at the second corporation to learn how they have engaged in the past as we forge a way forward for themJi Ming Yang Amperex Technology LimitedFounded in March of 2015, Ji Ming Yang focuses on the development of batteries for "New Energy Vehicles". They possess a number of patents seeking to enhance and extend battery life while also reduce operating costs.The Company seeks to commercialize solutions to the problems faced by all vehicle battery manufactures, such as shortage of battery life, expensive materials, and charging station issues.Our ViewThe venture into the battery sector is a first for JBZY and may present them with huge opportunities for growth both in the US and worldwide.In our view, the merger presents a great opportunity for JBZY to work in conjunction with their partners to venture into the US space through such low cost and efficient batteries. Such a move, given the proliferation of the electric car industry in the US and globally, would open them up to great opportunity while linking them to a firm demand side. Growth would therefore be imminent for such a company.The QuidJZBY has had a strong financial position in the recent past with the company making profits over the second quarter of 2017.First, revenues short up from nil in 1Q2017 to $156,000 in 2Q2017.They made $155,000 in profits this quarter as compared to the previous where they made a loss of $78,000. This came in the wake of a reduction in their sales, general and administrative expenses from $79,000 to $1,000, a significant cost cut during the period.Over the same period, their working capital improved from $761,000 to over $2.8 million while the total shareholder equity rose to close just shy of $3 million.Such numbers tell a story of a healthy company trying to grow itself. The restructuring will have some implications on these numbers but their growth, if the trend continues, is imminent for them.ConclusionJBZY is now a player in the electronics space with the backing of a partner with some strong investments in it. It won’t be long before they begin to venture into the American market after which the value created will be beneficial both to them and to shareholders.We will be updating our subscribers as soon as we know more. For the latest updates on JBZY, sign up below!For the full story, check out our complete coverage on DOLV.Disclosure: We have no position in JBZY and have not been compensated for this article.