denensive and undervalued, page-32

one just have to love the markets.
There is alot of spattered eggs on the faces on the funds management community that bought into this IPO.

i predict some very difficult explaining to do in the quarterly performance reviews.

But this provides opportunities for those with a longer time frame and can seperate share price movement from underlying company value.

How does a funds manager remove that egg????
they sell down the holdings so its not noticeable.

Look at the daily volume over the last few days post the profit downgrade, we are approaching 10% of the companies shares on issue being traded on the last few days.

Volatility will remain high for a while whilst the churn continues, but i am as happy as Larry. Some good opportunities here for those with a long term view (5yrs).

One new word of warning for the short term players:
note the downturn in sales for FY2010. When the downturn happened the downturn lasted for several quarters.

There is a risk that CKF will experience further profit warnings over the next 6 months if the downturn in sales persist.

But for me this will represent more buying opportunities if the share price is trashed further.

KCF has been around for upteen years, and it will be here for upteen years into the future. These are just short term profit movements, over the longer picture.