I feel it's OK to research and back your own analysis by buying small/high risk companies ... BUT ... be mindful of risk of such investments and only invest what you can afford to lose.
I'm a reasonably experienced, active investor and hold KPT, but my holding only represents <0.5% of my total investments. Even if you decide you like them, I'd suggest you consider no more than 1% exposure.
With that said - why do I hold them? From my calcs, I think future years cash flow is equates to a PE of ~5 at todays price of ~$2.20 (if they get the wharf up). If they don't get the wharf up and have to use the other one at the other end of the island, I think the PE would be ~10. Also there's upside as woodchip prices are projected to rise with a supply squeeze and there could be access fees for third parties using the wharf.
So ... I don't think too much long term downside if the wharf doesn't get up, but hoping for price to hit ~$5 once the wharf is built and harvesting generates consistent cash flows (say 2 years, maybe longer)
Good luck!
KPT Price at posting:
$2.10 Sentiment: Buy Disclosure: Held
