Looks like you have made a good call on this one Niclou.Loved your graph!! Very solid financial result in the toughest market in living memory--and the movement seems to be all value based at the moment without any of the benefits that may derived from internal business combination within the Scott Group as postulated in a recent report from my Broker, as below.
"Investment Thesis – Upgrade to Outperform - KSC’s management has proven its ability to adapt to the changing economic landscape, maintaining stable to improving profit margins over the past ten years, despite varied economic conditions. We believe FY10 will represent bottom of the cycle earnings, with KSC well positioned to generate significant earnings growth in the medium term. We are also attracted to the potential for consolidation opportunities, noting the estate of the late Allan Scott holds approximately 65% of KSC’s register. We estimate Scotts Transport is approximately double the size of KSC (by turnover), with significant opportunities for revenue and cost synergies if a business combination were to be negotiated. Recommendation upgraded to Outperform."
Plus , I read only this morning in the Fin Rev. and the Australian that TOLL is cashed up and looking for acquisitions -- could be very interesting times!! Only my thoughts. regards Q
KSC Price at posting:
$2.43 Sentiment: LT Buy Disclosure: Held
