ben graham buy, page-2

Yes - KSC has been good value in recent months, and today one sees far more serious would-be buyers than would-be sellers. I have not topped up because I simply do not have the spare money to do that, and because I already hold 30732 KSC shares in my SMSF portfolio (recently sold my personally held KSC shares to my SMSF).

The recently announced record iron-ore tonnages shipped from WA suggest to me that established miners will attempt to compensate for lower prices via more volume, which is a normal response when the marginal cost of a ton is still manifestly less than the price achieved. This means earth-moving equipment, parts and fuel, plus whatever an iron-ore miner uses in the ore extraction process, will need to be transported, so KSC's WA operation should do well. As for the eastern states - KSC should by now have adjusted its cost structures to deal with the diminished business it gets there these days.

The small amount of director buying some six months ago is a minor endorsement.