It surprises me that KGN has to deal with 'inventory problems'....

It surprises me that KGN has to deal with 'inventory problems'. Some time ago, I read RK boasting about their internal controls due to their sophisticated IT algorithms. He contended to have a close feels for the pulse of the market, i.e. consumer desires, like right down to detail, such as consumers would prefer chrome toasters over matte black, or pale green for example. (I am not sure about the exact detail) Thus, it would be possible by observing search words, clicks on certain colours, staying time on a product, staying time on a product and resulting in buying, etc. It was indicated that KGN can 'feel' which way the fickle consumer will swing; and consequently be prepared to order in advance and be more ready than competitors in exploiting trends especially and optimising delivery to the consumer in general. - I found this a compelling argument. ... but is reality really so?

I was surprised that KGN hired a "celebrity director" of (Shark tank, Australian Survivor et.al.) tv fame to the board. JA has little skin (4,761 shares) in the game.

... and there is the past of 'surprising' sales of shares by RK. Currently, he owns 15,853,321 shares out of 106,600,000 issued shares. All according to Commsec website.

Towards the end of January KGN blamed the SP fall on COVID-supply chain problems globally, ... and at the time this sounded really plausible, although it appears that the Managment Information System (MIS) did not cope well.

With KGN, I am never quite sure what the story really is - until afterwards.


For me, as an investor, it is also the 'untangible' qualities of a company that make me hesitant. ... Not to mention the adage of "never catch a falling knife".

All in my unqualified opinion.

GLTAH

Only the ones who know how to buy low and sell high will be and would have been happy with this stock. My sentiment is ambivalent - no choice here, so I will state none.