Hoping long term

I have held KSC for many years, but I do not pay much attention to it. I bought it when I first ventured into investing, and I bought in for the wrong reason. Not surprisingly, I have lost money on KSC. I hold 40,732 KSC shares.

When I reviewed my portfolio about six months ago, I decided to hold KSC until the affects of acquiring Scott Corporation Limited, and to a lesser extent, Northern Territory Freight Service (NTFS), wash through in the results. The benefits should be seen in FY2016. Also, the impact from the change of management should then be more visible.

Apart from mining-expansion-related transport, there is no reason to believe that a transport and logistics company should not be doing OK in the current environment, and so I look forward to see what the next Annual Report has to report. I take comfort from the fact that the CEO acquired shares over the last 6 months at prices (circa $1.50), which is above the current SP.

My punt is that KSC will generate an EPS of about 13c in FY2015, and 16c in FY2016. This should help the SP along. Market capitalisation is $154m, and the equity less intangibles is about $200m, so that too bodes well for an SP uplift. DPS is typically a relatively high percentage of EPS, so I'll plumb for 8c for FY2015, and 9.5c for FY2016.