The market depth is building and the volumes were up for a while, but this seems to have settled into a 13c to 15c trading range and may stay there till we get more news - maybe the next 4C in April.
At 13c Konekt's EV is under $10m, which still seems low given a forecast EBIT around $2.5m, even if we ignore the growth potential.
The fundamental downside seems relatively limited, given the diversity of services and clients. It's notable that Konekt's big turnaround - and first profit - came in FY08/09, which saw the worst of the financial crisis. My feeling - admittedly not based on any substantial analysis - is that if China stumbles or further financial crises eventuate then companies like Konekt may prove robust.
KKT Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
