# KOV - Korvest Ltd



## jkool (3 February 2007)

Another of my searches into Aussie stock resulted in finding this little company (my analysis is as always here, this time with some graphs to make it more colourful: http://sog.shopinthemall.com/2007/02/03/australia-korvest-limited/)

Now from where I stand this is greatly looking company with excellet earnings growth and buletproof balance sheet.
Drawbacks? Well perhaps the size of it (market cap only around 50mil on a good day) and maybe the cyclical nature of its market. 
Also for the investor with shorter term in mind the current price levels may be too high and the daily volumes are rather thin.

Anyone else ever looked at this stock?

Cheers
jkool


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## robert toms (4 February 2007)

*Re: KOV - Korvest Limited*

Yes I looked at them when they were under two dollars...then they got away from me...price wise.The largest shareholder is Hills Industries in Adelaide.Korvest has added at lot of revenue to Hills' balance sheet.I know a bloke who did work for them...at that stage their main work was galvanising metal products.


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## jkool (5 February 2007)

*Re: KOV - Korvest Limited*

Yeah for $2 that would have been quite a purchase Anyway with their rate of growth even $6 is not all that bad. Just that I dont really like purchasing stock on their 52wks highs or thereabouts.


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## galumay (20 September 2020)

Not surprisingly, not a lot of chatter about KOV! One of my recent additions to the portfolio, turned up in my regular scan through my filtered investible businesses on the ASX, not sure why it hasnt popped up previously. A nice, simple to understand, boring little business, well run, long record of profits with a blip in 2017, same with FCF and pays a dividend every year. Its ROIIC exceeds my hurdle rate as does its FCF yield. Cyclical, likely to see a swing up with the infrastructure spending post Covid.


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## Trav. (20 September 2020)

@galumay thanks for your posts mate as it give me some information to research on for the fundamentals of a business which I struggle with.

In this case I have deduced the following with the help of investopedia 

FCF yield - Free cash flow - https://www.investopedia.com/terms/f/freecashflow.asp 

ROIIC - Returns on Incremental Invested Capital - https://www.investopedia.com/ask/an...ate-incremental-return-investment-capital.asp

Now with KOV my chart had several buys from 2018 to present and would have been -4% and the buy and hold comparison in AmiBroker (excluding dividends) would have been +92% so you can see my interest in uncovering a few stocks like this one for a long term portfolio.

So thanks for the post and good luck with KOV

Market Index


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## galumay (20 September 2020)

Thanks Trav, it certainly wouldn't be most investors or traders, type of business. But if we were all doing the same things there would be no market!


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## Dona Ferentes (21 September 2020)

Initially, I like to look at what a company does, and how it's performing.
1.  Korvest Ltd (KOV) is a South Australia based manufacturing company with principal activities comprising of hot dip galvanising, sheet metal fabrication, manufacture of cable and pipe support systems and fittings, design and assembly of access systems for large mobile equipment and sale, repair and rental of high torque tools. The Company has two segments: Industrial Products and Production. The company has sales offices located in Adelaide, Melbourne, Sydney, Brisbane and Perth, with distributors in Darwin, Townsville, Hobart, as well as New Zealand.           
2. Earnings    ... and Return on Equity
View attachment 112009


... then I'll have a look under the bonnet, see what is driving the longevity


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## Trav. (21 September 2020)

@Dona Ferentes attachment link not working mate. I am interested in to see what you make of the business.

Cheers


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## Dona Ferentes (21 September 2020)

Trav. said:


> @Dona Ferentes attachment link not working mate. I am interested in to see what you make of the business.
> 
> Cheers



not sure what happened there
.. trying again





Earnings lifting, and Return on Equity lifting. Nice trend, and to me a confirmation they're doing something right/ sticking to their knitting.
Just confirmation of what @galumay stated. 

And then,  i tend not to directly invest in such companies. I hold a few old fashioned LICs and if I drill into their holdings, usually the KORs of the world are held (and monitored more closely than I would) and sold at times.


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## galumay (6 May 2021)

Nice trading update for $KOV today, not much of a beneficiary of the Covid boom, so hopefully its sustainable growth. Share price popped nearly 10% in early trade.


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## galumay (8 October 2021)

Nice update today, reported a very strong start to H1 2022.


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## galumay (7 January 2022)

Another trading update, even stronger H1 than previous guidance, another 20% EBT, now looking like $9.8m.


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## divs4ever (7 January 2022)

Trading Update On 7 October 2021 Korvest announced that it expected the first half profit before tax, including the previously disclosed profit on sale of Power Step and Titan Technologies, to exceed $8 million.
 The second quarter trading has exceeded expectations with a significant concentration of major project work and ongoing strength in the small projects and day-to-day markets. As a result, the preliminary trading results, which have not yet been subject to audit review, indicate that the first half profit before tax will be in the range of $9.4 – 9.8 million. Korvest’s half year results are expected to be announced on 21 January 2022 and will include an update on expected second half trading.

 DYOR

 i hold KOV ( av. SP $3.17 , so up 144% for me )

 going nicely for me NOW  , but there was a time my patience was tested ( and was wondering if i had got this one wrong )


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## galumay (7 January 2022)

Why am i not surprised we both own this!!


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## finicky (7 January 2022)

Not in, but still doesn't look expensive if it can trundle along at this pace. Sales don't seem to rise much? But return has been increasing.


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## divs4ever (7 January 2022)

i bought the first  lot in October 2014 ( @ $5.90 ) and the last of 4 parcels in June  in 2017  ( @ $2.35 )  ,

 i was expecting  a mining investment downturn  but  construction/infrastructure spending to rise  , to help balance the economy 

 i guess the moral of the story is do NOT believe government policy ( or election promises ) when planning your investments , just pick solid companies  and hope they find a way to survive


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## divs4ever (7 January 2022)

finicky said:


> Not in, but still doesn't look expensive if it can trundle along at this pace. Sales don't seem to rise much? But return has been increasing.



 the result did include  asset sales  , so i can only guess if that was ultimately wise


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## galumay (7 January 2022)

divs4ever said:


> i bought the first  lot in October 2014 ( @ $5.90 ) and the last of 4 parcels in June  in 2017  ( @ $2.35 )  ,
> 
> i was expecting  a mining investment downturn  but  construction/infrastructure spending to rise  , to help balance the economy
> 
> i guess the moral of the story is do NOT believe government policy ( or election promises ) when planning your investments , just pick solid companies  and hope they find a way to survive




Thats basically my approach, I dont believe the future is knowable so I never spend any time contemplating the future, whether its macro, policy, legislation, secular trends etc. 

At the highest level I have tried to adopt the Terry Smith approach,


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## finicky (7 January 2022)

Can't do it myself but sounds good to me.
On the other hand why turn it into a school of orthodoxy? This sole approach excludes one from the benefits and disasters of speculation.


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## finicky (7 January 2022)

Terry Smith, 'Britain's Warren Buffet' gets paid a lot for #3 "Do nothing"


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## divs4ever (7 January 2022)

i used to play a lot of cards  ( but NOT for money ) when much younger ,  and while try ( and hope ) to pick good deals  , in the end all you can do is play the hand the best you can ( sometimes even a two can be a winner )


finicky said:


> Terry Smith, 'Britain's Warren Buffet' gets paid a lot for #3 "Do nothing"
> 
> View attachment 135406



BTW  , he didn't do  'nothing '
 picking ( ACTUALLY ) good companies it harder than it looks , especially as a  fund manager  , you have to convince the clients  your undervalued  gem  , is a better deal than  say Tesla or Afterpay  AND get in at a good price 

 and THEN persuade the clients to hold firm  and not leave to chase the next shooting star ( like say Bitcoin )

 and also convince the clients you are worth the fees  when they could buy an ETF with only 0.07%  MER


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## galumay (8 January 2022)

finicky said:


> Can't do it myself but sounds good to me.
> On the other hand why turn it into a school of orthodoxy? This sole approach excludes one from the benefits and disasters of speculation.




I wasnt intending to turn in into a school of orthodoxy! I am sure Terry Smith wasn't either, its a highest level description of what one of the world's most successful investor strives to do.

The reason it resonates with me is that I already had an investment style that ignores macro, secular trends, and market influences generally. I also have a very long term view with no relative benchmarking and I try to buy good businesses, without debt, at a discount to my calculated intrinsic value.

Of course most people wont agree with this approach, for a start I think the majority are narrative speculators, with very short time frames and aggressive relative benchmarking to indices.  Then there are the trading speculators who would go broke if they used this approach!

We all need to find our path and process, develop confidence in it and apply it with discipline.

For those interested his owner's manual and letters are well worth reading. 









						Fundsmith | Fundsmith analysis
					

A selection of letters, articles and documents of relevance to Fundsmith investors




					www.fundsmith.co.uk


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## divs4ever (8 January 2022)

well i don't know about you folks , but i invest in LICs  that  use a style/mandate  that i can't equal or better ( when they are going well )

 so if the fund manager  has been wise enough to pick a good entry-point on an investment AND hold the course for as long as sensible ( pesky take-overs  disrupt my plans , sometimes for the better and sometimes i just get a handful of cash )

  of course some  of his peers  are ambitious  and are trying to impress new potential customers  , while Terry Smith just needs to keep the current clients  happy  ( in a world of new temptations )


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## peter2 (25 February 2022)

Added *KOV* to a longer term conservative portfolio. I think the current dip provides a good R:R opportunity.


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## divs4ever (25 February 2022)

welcome to the club  , 

 sure i nibbled in 2014 , 2015 , 2016  and 2017  ( 'averaging down ' ) .. now  up 109%  because i took the extra risk 

 good luck 

manufacturing in Australia is a MESS , but it is nice to see some survivors


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## divs4ever (19 May 2022)

Trading Update
On 21 January 2022 when Korvest announced its first half results, it advised that it
expected the second half result would be more comparable with 2H FY21 than with
1H FY22. As expected, second half trading is below the record levels experienced in
the first half, however activity is higher than 2H FY21 levels.
As a result, it is expected that the profit before tax for the full FY22 financial year will
be in the order of $16 million.
Korvest’s full year results are expected to be announced on 22 July 2022.

DYOR

i hold KOV


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## galumay (20 May 2022)

One of my few holdings that were green yesterday!


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## divs4ever (20 May 2022)

i started buying this  when HIL ( Hills ) divested it's holding 

 it has been a bumpy road but am happy i did 

 ( sadly i also still hold HIL )


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## galumay (22 July 2022)

Solid result for KOV for 2022.


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## divs4ever (22 July 2022)

Korvest released it's results today
and they looked pretty good
HOWEVER i suspect much of this news has already been priced in , and MAYBE there will be a tiny twitch over the div. increase

DYOR

i hold KOV ( av. SP $3.17 )


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## galumay (25 July 2022)

Your MAYBE was a bit more than a tiny twitch, @divs4ever! Up 10% today.


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## divs4ever (25 July 2022)

i get some predictions  wrong 

 nice to see a BETTER than suspected outcome 

 although the SP rise doesn't do any more than boost my ego  ( i do not DRP KOV )


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