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.
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Last
$9.70 |
Change
-0.040(0.41%) |
Mkt cap ! $113.2M |
Open | High | Low | Value | Volume |
$9.75 | $9.75 | $9.70 | $129.1K | 13.25K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 14 | $9.73 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$9.75 | 217 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 14 | 9.730 |
1 | 298 | 9.700 |
1 | 50 | 9.690 |
1 | 49 | 9.680 |
1 | 104 | 9.670 |
Price($) | Vol. | No. |
---|---|---|
9.750 | 217 | 1 |
9.790 | 580 | 1 |
9.890 | 317 | 1 |
9.900 | 1000 | 1 |
10.000 | 50 | 1 |
Last trade - 11.34am 26/07/2024 (20 minute delay) ? |
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KOV (ASX) Chart |