I think the market must finally be realising the value of the company. It was trading at a P/E below 10 at one point despite Brett the CEO reiterating that NPAT is expected to double by 2024! If we looked at the forward P/E it would have been below 5!!! For a stock that also pays a good dividend yield clearly this company was just missed by the market!
Even now at $2.16 the P/E is ~25x but if NPAT is still on track to double by 2024 then the forward P/E is ~12.5x which is still great!
I doubt we will be seeing more buybacks anytime soon but the stock is fairly illiquid so if something bad were to happen it would take too many sellers to see a decent fall in the price. Definitely one to watch and now makes up about 16% of my portfolio having bought for $0.99
KPG Price at posting:
$2.13 Sentiment: Buy Disclosure: Held
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