Denial raises two interesting points in his/her first post...

Denial raises two interesting points in his/her first post above.

Regarding shareholder support. The FY16 and FY17 registers have materially changed. In FY16 the top 6 were nominees and represented 51.35% of the register. In FY17 two of these nominees dropped out, BNP and National representing 11.44%, leaving the remaining 4 representing 36.86%, which represents an aggregate reduction of 3.05%. Only the Nominees and KCN know who sits behind them, unless the insto shareholders release there holdings elsewhere, which is likely, but you need to find where.

Of the remaining 16 in the FY17 top 20, only Yandal (Creasy, 1.0m, no change), Ali Beydoun (1.2m, down ~8%), Elizabeth Aprieska (~1.4m, no change), Lujeta (2.1m, no change) and Arinya Invest (5.0m, no change) remain, representing about 4.8% of the register. The size of No. 20's holding has increased from 0.19% to 0.40%.

This suggests that over the last ~12 months 11/20 or 55% of the top 20 has turned over and the size of the top 20 holdings has generally increased. So unless these 11 are RSK supporters who have moved up the register (which is of course possible) these are otherwise new value investors looking for a gain. One would expect that this trend is reflected in the top 100, so maybe loyalty isn't an ace that KCN/RSK holds.

Regarding M&As and failures. Denial is right, there are many out there, BHP and Rio probably have an aggregate list as long as Denial's arm. 'Failure' has a range of outcomes, from a slight reduction in earnings per share to the complete destruction of shareholder capital, or the organisation itself. BHP and Rio have the advantage of the portfolio effect (diversity), KCN does not. When BHP's Boodarie hot briquetted iron (HBI) plant at Port Hedland was shelved it cost shareholders but it didn't cost them a third-half the company.

Hindsight is a wonderful thing, but plenty of corporate boards also show great foresight. Unfortunately KCN doesn't seem to be one of them.