Road block again at 97c 97.5c, page-60

This is a fantastically simple graphic which shows a lot about what KMD is currently going through. Cheers for putting that together Chips.

A number of posters on the forum are expecting this to burst from $1 range to $1.2 to $1.5 in the near term. In the medium to long-term I can definitely see that playing out and getting a great return on your investment. KMD is a reputable retailer of high quality goods owning stakes in a number of brands and market segments. Realistically though, valuing KMD at $1.20 to $1.50, puts KMD at a valuation anywhere from $850m to $1b.

As you can see from Chips's graphic, KMD's recent highs come in at around $750m pre-COVID.

The recent cap raise was one of the largest most diluted cap-raises I have ever seen in a company of this size. Now, comparing the current share price to what it was pre-COVID is not at all an accurate comparison because there are more than twice as many shares on offer.

Additionally, comparisons to other retailers in a similar position to KMD are perhaps not the best way to look at the business either. For example TRS, this is for two reasons.

1. KMD has already seen a ~60% increase from the lows of $0.60 prices, this is already way, way above the market performance, keeping in mind that KMD is a retailer, which has been one of the hardest hit industries.
2. The cap raise from TRS was $25m and was announced in February, prior to a lot of the current day COVID related drops. Given it has a current market cap of $225m, this has hardly diluted the market cap of the company, which is very dissimilar to KMD. Additionally, TRS primarily sells cheap retail goods and essential items. KMD sells luxury items at high costs which are now unattainable for a significant portion of the population. The recent run-up of TRS has been phenomenal and I would've loved to have been a holder at the start of that rally, but it's apples and oranges at this stage.

I bought into KMD a couple weeks before the cap raise announcement and am very bullish and can see myself holding for the medium term, but for some of the posters on the forum, please don't let the day-to-day SP movements rattle you, and be sure to look at KMD in a perspective that frames its current market capitalisation/valuation.