Not surprisingly, Kingsgate’s management team have proven...

Not surprisingly, Kingsgate’s management team have proven themselves, yet again, to be incompetent, certainly when it comes to financing timely and appropriately the company’s activities. They also leave in their wake a trail of blunderbuss, some may think deception, as to how the company would raise the additional funds needed, after a hefty rights issue in April.

I accept, not happily, that the market capitalisation of Kingsgate is at a hefty discount to its underlying fundamental value, just because of poor management on the financial front. Add to that figure the damage done to the share price rating by a widening management credibility gap. For those not familiar with this financial term, it is the discount that the market values the shares at because it does not fully believe what management says.

Ironically, I find, that despite the management shenanigans, I think that the share price is trading at a substantial discount to what their true fundamental value is. Taking both a short-term view, say over the next six months, and a long-term view, say at least two-three years.