The shares I hold are mostly executive share options that were...

The shares I hold are mostly executive share options that were vested at a price somewhere around $6.00 just prior to my termination, so money is still owed against these (payable from dividends on an interest free basis), and hence not worth selling.

Regarding the share price, its only being propped up by some ‘die hard’ long term investors desperate to keep a floor under the sinking price, based on the business performance over recent years, it should be trading somewhere in the $1.00 range, and may well do so in the not too distant future.

Net Tangible Asset value is only worth full value when they can be used productivity to achieve a decent return, clearly Korvest has continued to fail on this front and therefore eventually the assets will trade at a larger discount.

To be clear about one very important point, the current business performance of Korvest is not intrinsically linked to a ‘wider construction downturn’, in spite of what they would like you to believe. Whilst the mining boom has ended, non residential construction expenditure is certainly higher than where it was in 2007 when the MD commenced and this is the core driver of most revenue growth for Korvest.

Can the business be turned around, absolutely, however. . .

1. It would seem highly unlikely (if not impossible) under the current leadership

2. The ineffective management of Korvest has allowed many of its competitors to become stronger, careful strategic management (and cost) is required to regain strength across these territories.

3. It will take some reasonable time. Management were left with a finely tuned race car and they have been screwing around with the settings for several years, the physical assets haven’t changed, just the tuning.

It’s a pretty tough commodity business and that’s what makes it so challenging, its more a sport or an adventure running this business, every area needs to be constantly tweaked to achieve decent results, you just can’t sit in a corner and watch the world go by!

The MD is 60 something, he along with the other executives are clearly earning excellent remuneration which is in no way effectively linked to performance, therefore there is no real neccessity for them to push themselves to achieve better results for shareholders.

I could write all day about what is wrong with this business and how it needs to be managed, but that will achieve little.

My objective is to continue to alert investors to the ‘real Korvest’, so as not to be misled by the rubbish being presented by those with a vested interest, clearly history is revealing the real MD in any case!!!!