Questions for Management, page-187

Thanks for responding Islandmurray.

I completely agree with rebranding the organisation away from dairy as they seem to be increasingly diversifying; it would also help develop a better reputation and fresh new image. I haven’t thought about that before, now that you mention it, I think it would be a wise strategy.

Yes I would be a fool not to acknowledge that sectors move together at least to some degree a lot of the time. Although I think with small caps looking at the sector/industry is not as important a consideration? Particularly a small cap with very depressed prices such as KTD, that has the issues I described.

I haven’t done in depth research so I could be wrong, but The handful of Australian dairy companies on the asx have mostly been affected by the specific geopolitical and logistical issues I described and this is possibly being conflated with broader trends in the dairy industry?

The data may be mixed but a lot of it is potentially coincidental. The question that needs to be asked he is to what extent the sector/industry is influencing the share price of a specific company ?

As you say it is generally an important consideration and the ‘average punter’ may be deterred by the trends in dairy companies; although my point is that I think the sector consideration is minuscule in explaining or predicting the share price trends for KTD compared to the factors I listed. Almost negligible insofar as predicting a substantial turn around in share price from here.