Most of this recapitulated numbers we already had, except for:
Which is looking good. I'm confident enough about management that I'm happy for them to invest in improvements, and confident enough that Konekt is currently undervalued to think the share buyback is better value for money than a divdend payment would be.
There's a lot of uncertaintly, obviously, and they're not giving guidance, but if 2014-15 revenue is up 6%, that would be revenue over $35m, so, even with the $750k reinvestment and without further cost-cutting, profit after tax could exceed $2m. Which would surely - with consistent earnings and growth - justify a market cap more like $20m or even $30m, rather than the current $8.5m.
Like the directors, though, I'm in this for the long-term.
KKT Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
