Ann: Strong Orders for New Plant, page-41

KTD is 'purchasing' turnover; revenue and production first, profits later. I like it that the orders are coming in. I also think that they have a good handle on cost control - if you compare KTD to the usual other suspects in this space.

Unfortunately, there are 3 main problems hanging around the share price (and not the business). First, there is a strange reputational judgement coming up every now and then (with which I disagree) about the management quality and direction; which has legacy reasons. Secondly, the issue which the options and their dilutional effect. This is largely irrelevant - because, if the SP reaches strike price levels, a lot of the posters would have made their money back, doubled or tripled. Thirdly, KTD operates in this 'contract manufacturing space' that carries a reputation of less profitable and less scalable; and here I like what they are doing: they play both sides of the game. I vaguely remember a quote by DR when asked why not pushing the IF hard: "... the IF space is tricky ...". I think that was at a time when BUB was still above 1$ and A2M on the way to 20$. ... Unfortunately though, investors in KTD have not fared much better.

IMO, these are the 3 reasons why the price to sales ratio is so low; and the current SP so intriguing. If investors want to 'multibag' they have got to be in it before everyone else realizes. Price to sales is a good starting point, the rest is judgement on Management, growth projection of the market / product.

If they continue the path of the last 4 quarters into the next four quarters - and continuity, i.e. the absence of surprises is the key operator -, all of the above problems will be a thing of the past. ... The next 4C will be an interesting read.