ksc valuation?, page-14

I bought KSC many years ago for the wrong reason, and I am still behind (bought at an average of some $2.65). For many months during 2012 KSC was trading below NTA ($1.72), and as directors were buying in early 2012 at prices circa $1.20, it seemed worth holding, plus the dividend yield at those low SPs was above average. The SP nadir was $1.06 at COB 27/03/2012. I still hold 30,723 shares, but with little conviction at the current SP, which has had a nice run up in recent months.

The 13/11/2012 announcement at:

. . . http://www.ksgroup.com.au/data/news/2012/1168657.pdf

suggests that things are plodding along nicely, but management should have better visibility by February, which is now. Under the circumstances, which includes the fact that I am struggling to find a home for some cash that my SMSF has, I'll wait for further information.

If a stock appears to be turning around for the better, and it is a reasonable dividend payer relative to SP, then I do not mind hanging onto it while I wait for it to turn good. At recent lower SPs, KSC fell into that category. At the current SP, the case for holding is not as strong, but as I wrote, I do not know of obvious candidates in which I can invest cash at hand, so I am in no hurry to realise KSC to get more cash, but this could change abruptly.