Thoughts and opinions

Hello all,

I must preface this post with two pieces of info:
1) I'm a very young investor and have no long-term investing experience
2) I have stumbled upon this stock purely by chance and it has caught my interest quite strongly.

I was browsing various random stocks just reading their reports and getting an idea of how CEOs communicate. I came across KPT and was immediately interested as I've never seen a timber company listed on the ASX before. Turns out KPT is the only forestry farm timber stock on the market.

I read the last quarterly letter to shareholders and really liked the honesty about the time lines from planting to harvesting and how the focus would like to be on dividends etc. The detailed discussion of land acquisition and the associated challenges was great too - the directors of the company seem very upfront with shareholders.

So I started looking back through the company history and was blown away that it used to be trading at 10 dollars per share! And in a little 6 month window it dropped from $7.45 to just 15c per share. A 97.5% drop.

At first I was thinking that I should really add these guys to my watch list and consider investing in them in the future (for example, if the wharf appears to be going ahead with construction)

But then with this huge share price drop, apparently brought on by capital raising at just 12c a share (when the share price was over $7 I don't know why they devalued their shares with such a small dollar value? Someone care to explain this logic?) I just don't think I could trust that this won't happen again in the future?

Positives are that management seems to have a good long-term plan, they have established farm already, the return on capital is recently positive and the book value and earnings have recently started to increase - perhaps debt is being managed better. The price to book value is also just 1! These things all make it seem like good value.

However, if management need to do another CR and release ridiculously low-priced shares again, or the port doesn't go ahead, or there are troubles acquiring land for expansion of their farms..... The share price could tumble again.

How are other people feeling about this company?