It’s been posted many times. KTD did run on hot air I believe just after IPO, on the belief that it was tapping into the Chinese baby formula market.
You are stating you sold out because you didn’t believe the hype when old management was running this. Fair call and probably the right one at this point.
What I think you have completely wrong is your timing for re-entry. You will pay a significant premium by waiting for EBITDA to be “officially announced” in shining lights as opposed to buying on the leading indicators (in this case strong revenue growth, increased sales forecasts, positive cash etc).
Yes we have had two CR since for some very good acquisitions. Do yourself a favour and do some research on Omniblend. As I’ve pointed out a number of times, it’s no surprise they have grown so well over the years - they develop products for their clients and then they manufacture them.
BUT HERE IS THE SMART BIT IMO:
THEY RETAIN THE IP for the product they have developed.
The acquisitions are complementary and I have no doubt, will be accretive. In the meantime NZ is seriously ramping up sales under the stewardship of the new CEO and Board.
Good luck for your re-entry.
KTD Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
(20min delay)