Gem of a stock, page-11

Yes, it all looks pretty good, but this is a very high risk sector. An event such as terrorism in Australia would see this stock plummet. Pandemics such as SARS, Bird Flu, Swine Flu, etc, will also have a big impact. Don't forget the impact of currency fluctuations too.

The market is highly fragmented, but most successful companies in the industry have deep long-term relationships with suppliers in place. And I mean person to person, not necessarily company to company. Any acquisitions must maintain these relationships to protect their barriers to entry.

Although it is high risk, SKB do have the potential to create an iconic Australian company. It will all come down to Management's skill in acquisition analysis, protecting barriers to entry, and making sure they can ride out any long-term shocks that WILL occur from time to time.

Good luck to those who own this.