I think their main competitive advantage is the Konektiva database (extensive database of return to work case files). Basically KKT is leveraging big data from here to drive performance and decision making for customers in the industry.
They are basically the leader in their field but only control 10% of a very fragmented market. There is heaps of scope to just gobble up other players. The beauty too is that, management is obviously very careful about the multiples they pay for any businesses, and when nothing is available they just buy back shares (another 700k odd purchased yesterday at 21c) and we get more and more EPS accretion. I feel it is inevitable that they will make a decent purchase down the track, and that is probably when they will get a fund on the register through a placement, coverage will commence, and the share price will spike.
In the meant time though its nice enjoying a methodical share price rise as revenue slowly ticks up and EPS ticks up faster. I am looking forward to the commencement of dividends as franking credits start to kick in.
KKT Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
