Hi Just_a_guy I liked your posts, nice synopsis. "what's my...

Hi Just_a_guy
I liked your posts, nice synopsis.

"what's my take?". I haven't done my own estimates of KOV's near term earnings or cash flows - I'm not capable of doing so accurately, to be frank. Really hard for an outsider to forecast KOV work volumes, IMHO.

My small position in KOV was simply due to its low share price (hopefully near its cyclical low) relative to its demonstrated ability to earn much higher profits when conditions are in its favour. I am content to ride this position until that eventuates.

A lot of things to like in this announcement but what I really liked was the very confident tone of mgmt. So many upbeat statement littered thru the various announcements. It does suggest the headwind may be turning (or has turned) to a supportive one. A couple of good quotes from the presso:

from the headlines:
•Significantly improved market conditions
•Growth in all businesses
•Strong operating cashflows
•Positive outlook

and from the outlook:
•Infrastructure investment forecasts remain strong over the short to medium term
•Increased major project work expected in FY19 based on already secured orders
•Day-to-day and small project markets expected to remain buoyant
•Product cost reduction from supply chain and process improvements

That's all sufficiently encouraging for me to keep holding.

PS. Off-topic. I have previously highlighted VEE for consideration ... very nice announcement today.