Serious questions are being asked as to why shares in TTA Holdings, the distributor of TEAC branded products in Australia have suddenly spiked to as high as $0.78 and then dropped back to a low of $0.40 cents.
Back in mid-February the shares climbed to $0.58 after trading at $0.15 for several months, then in mid-March after dropping back to $0.22 the shares then spiked again to $0.78.
The Company claims that they are not aware of any information concerning the Company that has not been announced to the market that will the cause erratic trading, the emphasis being on ‘announced to the market’.
The Company who describes themselves a distributor of TEAC-branded audio and visual consumer electronics products in Australia.
The two main retailers selling TEAC products appear to be online stores Amazon Kogan and Wesfarmers owned Catch they are also being sold at the Harvey Norman owned Domayne stores.
The Company who has a questionable parent Company in Singapore has told the ASX that the business enjoyed a strong uplift in sales, and “this positive sales growth and market sentiment has been seen with other consumer electronics distributors and retailers during the ongoing COVID-19 pandemic”.
The Melbourne based distributor who reported a 6-month loss of $77K as at December 2020 on revenues of $6.8M generated the bulk of their revenue $4M in the last three months of the year selling TEAC TV’s.
Management claim that strong sales growth has continued in the current quarter, and the Company is cautiously optimistic it remains on track to generate positive cashflows from operations in coming quarters.
The business also pocketed $4.05M from the sale of a property at 75 Northgate Drive, Thomastown Victoria 3074.
In the past questions have been raised as to whether the Australian Securities and Investment Commission should question directors of the Australian operation, (TTA) about inter Company loans with parent Company TT International.
This is a Company that in the past has struggled because major cash generating assets owned by the business were placed into liquidation.
In the last three months of 2020 the TEAC distributor transferred $144,000 to their parent Company TT Interna claiming it consisted of payments for shipment inspection fees, restructure fees and Directors fees.
The parent Company reported a loss of $12M loss during the pas nine months to December 2020.
The last time ChannelNews spoke with management they claimed that they were major partner of Harvey Norman, JB Hi-Fi and The Good Guys, Radio Rentals, Leading Edge Group and Betta Electrical stores. This appears not to be the case anymore with the main retailers being Amazon, Domayne, Kogan and Catch.
Clive Chia Yang Hong a Director of the Australian distributor reported in January 2021 that the business had secured large orders from major customers which were fulfilled in the quarter despite freight and component shortages.
Orders for TEAC LED Smart TVs (40”, 58”, 65”,75”, 82”) were worth $4m for the December quarter Vs $292K for the September quarter according to Hong.
