KUT update

0
0

Following up on a Discord discussion re KUT- it was noted by Dan KUT was discussed on the blog as penny stock favorite but out of date, any updated comments? thx

Marked as spam
Asked on March 28, 2021 12:51 pm
2 views
0
Private answer

Thx Dan - agree with your portfolio holding allocation, looking at the lower end. Kut also a fav of Donville Kent whom have a nice track record

Marked as spam
Posted by mark goodfield
Answered on March 29, 2021 11:02 am
0
Private answer

Hey there. It's definitely an interesting company. Financially, the company has a compound annual growth rate of just under 24% in terms of revenue and it has been growing its net income by a decent clip too. Fiscal 2019 seemed to be a one-off for the company as it had some excess amortization and depreciation expenses which caused net income to be negative.

However, cash from operations has been growing, in fact it's almost tripled over the same time period.

The only issue I have with the company right now, would be valuation based on future growth. Analysts are expecting pretty rocky earnings over the next few years. In fact, it's currently trading at 29 times trailing earnings and 71 times 2021 expected earnings.

Company's balance sheet is solid, debt to equity of less than 0.55.

Overall, I like the company. Some strong growth thus far but it's pricing in a lot of future growth already. Which means the company will need to perform. I see some upside here if the company continues to do what they're doing.

If it were me and I were looking to buy, this would be a speculative play, likely taking up 0.5-1% of my portfolio max.

Marked as spam
Posted by Dan Kent
Answered on March 29, 2021 8:09 am