Yes, I agree with your comments @madamswer - the results could...

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gosouth

3,055 Posts.

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09/08/21

10:11

Post #: 55132482
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Originally posted by madamswer: ↑

"That's a little bit sobering actually.
Pretty solid, but against the share price movement this year, not exactly knocking the lights out. Hard to see any market upside today IMO.
However they are still good numbers."

If this time last year someone offered me the prospect of 30% EPS growth for FY2021, I would have been, "Well, that's a big hurdle, but it is possible".

But if that person told me the share price would quadruple over that period, I would have said he/she is medical grade crazy.

I think that what has transpired reflects two things, namely that KPG:

1. was unambiguously cheap 12 months ago (it was effectively on a sub-10x prospective P/E multiple),

and

2. is not at all cheap right now.

So I think that the stock price marks a bit of time for a while, as the future earnings growth chews into the elevated valuation multiple.

But I won't sell because I think that - provided the founder/CEO doesn't get run over by a bus - there is still a decade of relatively low-risk growth ahead of the business.

Sure, not at a 30%pa clip, but certainly at double-digit growth compounding.

.

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Yes, I agree with your comments @madamswer - the results could possibly be a trigger for a bit of a share price pause, whilst earnings catch up.
This one is a very solid keeper, (and my holding isn't exactly one to jump in and out of......)

Cheers
Gosouth

KPG Price at posting: $3.80 Sentiment: None Disclosure: Held
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Last $11.20		Change 0.050(0.45%)		Mkt cap ! $507.0M

Open	High	Low	Value	Volume
$11.25	$11.46	$11.06	$249.1K	22.18K

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No.	Vol.	Price($)
3	257	11.190
1	856	11.130
1	825	11.120
2	546	11.110
1	138	11.100

Price($)	Vol.	No.
11.220	203	2
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