I think there is still an overhang effecting this stock after the cap raise - no real negative outlook for their industry that I can see. Maybe some damaged roads etc that will reduce short term profits.
However the big factor with this co is that the founder and former major shareholder has unfortunately passed away. AA Scott PL did not take up their full 1 for 6. They have allowed themselves to be diluted (at a bargain price), which is very unusual (and illogical) for a major shareholder (If the discount was marginal that would be different - but TERP was $2.39 - so 10% disc to TERP). No matter what they say, I think this entities managers is not interested in staying long term, and will sell out when a good offer comes.
And it is great exposure to mining and agriculture - two hot areas.
I'm happily watching my low ball offers get taken out every now and then, but happy to have a takeover offer tomorrow or ASAP.
MM
KSC Price at posting:
$1.98 Sentiment: LT Buy Disclosure: Held
