Hi J_A_G
I've never had a look at KOV in any depth at all (albeit i'm aware of its existence) so i can't really add much to the conversation here insofar as it relates to a discussion specifically on KOV.
That said, in a market where any business of quality is generally richly valued, most of the stuff i'm spending time on at the moment is at the KOV-type end of the quality spectrum and based on a similar basic thesis, i.e. buying ordinary businesses on cyclically low earnings which are capped at cyclically low valuations (typically mid-to-low single digit EBITDA multiples). These sorts of situations obviously provide attractive returns when they work - a shift from say 4x to 6x EBITDA multiple combined with a 50% cyclical bounce in EBITDA is a 125% unlevered return, which if earned over three years is a >30% p.a. unlevered pre-tax return - but, of course, they almost never work out as per underwriting.
The biggest issue i am wrestling internally with at the moment is: how many of these deep value/low quality situations do i really want to own, and how big a part of the portfolio should they be? Does it make more sense to take a portfolio approach (i.e. buy half a dozen of them knowing that at least 1 or 2 will probably not work out), or buy just a few with higher conviction/weighting? I already own two businesses i'd unequivocally put in this bucket (GCS & MCE), and i'm looking at another that's very similar to KOV in terms of valuation and quality. In a perfect world i'd prefer to buy really good businesses at reasonable prices and hold them for a long time, but that's not easy at the moment as quality is generally very richly priced.
- Forums
- ASX - By Stock
- KOV
- Ann: Chairman's Address to Shareholders
Ann: Chairman's Address to Shareholders, page-5
-
- There are more pages in this discussion • 6 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add KOV (ASX) to my watchlist
|
|||||
Last
$10.00 |
Change
0.020(0.20%) |
Mkt cap ! $117.4M |
Open | High | Low | Value | Volume |
$9.99 | $10.30 | $9.98 | $87.72K | 8.671K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 50 | $10.00 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$10.25 | 250 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 50 | 10.000 |
2 | 1115 | 9.840 |
1 | 101 | 9.830 |
1 | 467 | 9.820 |
2 | 3600 | 9.750 |
Price($) | Vol. | No. |
---|---|---|
10.250 | 250 | 1 |
10.260 | 6 | 1 |
10.290 | 100 | 1 |
10.340 | 776 | 1 |
10.350 | 6103 | 1 |
Last trade - 14.40pm 30/08/2024 (20 minute delay) ? |
Featured News
KOV (ASX) Chart |
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online