# KSC - K&S Corporation



## So_Cynical (1 July 2009)

For those that don't know, KSC is a major trucking/Transport company, probably number 
3 or 4 by size/market share in the Australian road/rail freight industry.


First listed 1971
Operating revenue over 450 mill P/A
Operating from 34 locations in Aust and NZ
1500 staff
11+ year history of fully franked interim and final dividends
Top 20 shareholders have 80% - largest holder Scott 58%
Low debt

With the economy at or near/past bottom i figure its got to be a good time to look at 
these types of closely held, and fundamentally sound businesses, KSC is trading at near 
8 years lows... and considering there profit has only been marginaly affected so far, the 
current SP seems to be value buying.

Brought some today at $2.12


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## So_Cynical (29 July 2009)

Looks like my timing was a little off with my initial purchase...so took a small average down yesterday @ 1.75..the SP held well today with unusually big volume (big for KSC anyway) so here hoping the turn around is close.

Makes me paranoid when any company's SP keeps falling on no news, as has been happening with  KSC, have noticed that KSC usually release a Preliminary Final Report/Full Year Accounts type statement around Mid to late August.


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## So_Cynical (27 August 2009)

So_Cynical said:


> KSC usually release a Preliminary Final Report/Full Year Accounts type statement around Mid to late August.




Share price took off today after the profit announcement yesterday...took that as my cue to exit today for a 15% profit  left the profit in "as usual" along with 15% of my original capital, i look at this strategy as like the divi's being profits on profits, forever....or until the next global meltdown. 

I like KSC as a long term hold, especially at the price i got in for, i was expecting a profit fall of less than 10% and the divi to hold at above 4 cents and i was right on both counts....and for the life of me i just cant see how anyone else could see it any other way.

Road transport is like an essential service in a county like Australia, and there's like a core level of activity that's needed for all the essentials of life to continue...business like KSC are complex and costly to duplicate and this provides a kind of industry insulation, we have 4 major players in the Aussie industry...and will do for decades to come.
.


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## So_Cynical (1 April 2010)

Its been 7 months since the last post in this thread so time for an update on one of my favourite holdings...The KSC half yearly revealed a 4% fall in profit and a 12.5% fall in operating revenue, 6 months on corresponding 6 months.

EPS was 13.1 cents, with a FF dividend of 7 cents, cash flow generation was up 31% and gearing reduced to 20.2% down 54.8% compared the the same quarter last year....KSC also took over a smallish WA transport company and had its cartage contract with Onesteel continued and expanded.

http://www.asx.com.au/asxpdf/20100224/pdf/31nwjcmwp7c2ph.pdf

Chart wise KSC has been channelling between 2.70 and 3.00 for the last 7 months, spending most of the time at the top end of that channel, a break out would seem to be on the cards eventually.
~


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## So_Cynical (12 April 2010)

KSC has announced a Share Purchase Plan at a reasonable discount, i figure $2.56 per share is a reasonable discount considering KSC has been going sideways between 2.70 and 3.00 for 6 months....its been 5 years since the last capital raising which was a 1 for 10 rights issue at 2.80 back in 2005, so its not like this is a regular event.

With only 1829 share holders registered on the 2009 annual report its fair to say the cap raising wont have much of an impact on the overall financial position of KSC but will be a nice little bonus to there loyal share holders. 

http://www.asx.com.au/asxpdf/20100412/pdf/31pqr4jhyr145q.pdf


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## So_Cynical (23 November 2010)

So_Cynical said:


> (April 2010) KSC has announced a Share Purchase Plan at a reasonable discount, i figure $2.56 per share is a reasonable discount considering KSC has been going sideways between 2.70 and 3.00 for 6 months....its been 5 years since the last capital raising which was a 1 for 10 rights issue at 2.80 back in 2005, so its not like this is a regular event.
> 
> With only 1829 share holders registered on the 2009 annual report its fair to say the cap raising wont have much of an impact on the overall financial position of KSC but will be a nice little bonus to there loyal share holders.




Another cap raising only 7 months after the last one  however this time its a non-renounceable entitlement offer (not sure how that differs from a rights issue?) anyway i prefer per share cap raisings as they treat all holders equally  and this ones at a significant discount again.

1 new share for every 6 held at $2.15 per share, with KSC trading today at around $2.50.. money to be used to pay down debt from the recent purchase of Regal Transport and Pacific Transport and to provide options for expansion into the future.

Works out well for me because i only took a small parcel at the last cap raising due to lack of funds...so participating in this issue will be a reasonably large average down into the last (still open) trade, my expectation level is high with this one.

http://www.ksgroup.com.au/data/news...n renounceable entitlement offer 23-11-10.pdf


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## nulla nulla (23 November 2010)

So_Cynical said:


> Another cap raising only 7 months after the last one  however this time its a non-renounceable entitlement offer (not sure how that differs from a rights issue?) anyway i prefer per share cap raisings as they treat all holders equally  and this ones at a significant discount again.
> 
> 1 new share for every 6 held at $2.15 per share, with KSC trading today at around $2.50.. money to be used to pay down debt from the recent purchase of Regal Transport and Pacific Transport and to provide options for expansion into the future.
> 
> ...





With Capital raising, I tend to look at the impact on dilution of the net tangible assets and earnings per share. I have kept KSC on the radar for a long time but not as a short term trader. 
Wasn't this the freight company that had to deal with an internal missappropriation of funds some time back by one of the financial staff/mangers?


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## So_Cynical (23 November 2010)

nulla nulla said:


> With Capital raising, I tend to look at the impact on dilution of the net tangible assets and earnings per share. I have kept KSC on the radar for a long time but not as a short term trader.




Yes there's dilution if you don't cough up...but ill be fully participating so wont be diluted...and its not like there wasting the money, the Regal and Pacific transport buys were significant moves into the WA industry where K&S didn't previously have much of a presence....i have some indirect working experience with Regal, they are a respected and significant player in the WA transport space so a great buy for K&S 




nulla nulla said:


> Wasn't this the freight company that had to deal with an internal misappropriation of funds some time back by one of the financial staff/mangers?




I had no idea :dunno: as i didn't look that far back when i did my first research....Google found the answers, turns out they got done for 22 million by there long-serving K&S company secretary Dennis Craig Telford.

http://www.theage.com.au/articles/2002/04/19/1019020709739.html

looks like they successfully took action against his bookies. 



			
				Reuters said:
			
		

> Sunday, 7 Aug 2005 07:20pm EDT
> 
> K & S Corporation Limited announced that the South Australian Supreme Court litigation commenced by it in November 2002, against Vanuatu gaming company, Number One Betting Shop Ltd and UK gaming company, Sportingbet plc, over part of the Craig Telford misappropriation from K&S, has been settled out of court on a mutually acceptable basis and without any admissions.




http://www.reuters.com/finance/stocks/keyDevelopments?symbol=KSC.AX&pn=2

People are funny, wonder how Mr Telford is doing now...probably outa jail already as he only got 9 years.

http://www.theage.com.au/articles/2004/10/26/1098667758896.html


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## nulla nulla (24 November 2010)

Goes some way to demonstrating the underpinning strength of the company and it's board to be able to weather a $22 million rip off. In more recent times other companies have gone to the wall, even after recoverring much of what got ripped off.


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## So_Cynical (11 April 2011)

The KSC share price got hammered today on the back of Fridays profit warning/downgrade/market update...what ever you want to call it...so i figured with the SP at below my lowest buy in price and actually lower than its GFC low, that i had better buy some more...so i did.

In today at the crazy low price of $1.62 :cowboy:


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## Pioupiou (21 April 2011)

The guy, Dennis Craig Telford, who stole $22M from KSC a decade ago is now living in Mount Gambier.  They let him out early because he was so contrite!  Just as well Alan Scott, who substantially owned KSC, has since died, because he did not take kindly to being ripped off.

On the matter of the SP, Alan Scott's son-in-law, Legh Winser, who is now the CEO, bought 528,000 KSC shares on 12 April 2011, 14 April 2011, 15 April 2011 for the following consideration:

*  200,000 shares @ $1.61 per share (ie., a total consideration of $322,000)
*  28,000 shares @ $1.677388 per share (ie., a total consideration of $46,966.86)
*  300,000 shares @ $1.645 per share (ie., a total consideration of $493,500.

This suggests that things might be working out well, or there is something in the wind.

Shares moved up nicely today to close at $1.70, I think.

Pioupiou


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## nulla nulla (21 April 2011)

So_Cynical said:


> The KSC share price got hammered today on the back of Fridays profit warning/downgrade/market update...what ever you want to call it...so i figured with the SP at below my lowest buy in price and actually lower than its GFC low, that i had better buy some more...so i did.
> 
> In today at the crazy low price of $1.62 :cowboy:




Good call So_Cynical, up 5% on your entry.


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## jbocker (15 August 2011)

Got into this stock at 1.20 last week and it almost immediately fell to 1.00. Has climbed back well and is now 1.40.

Thanks to So_Cynical for you great posts on this stock. Took the opportunity to buy some in the downturn last week. Reason I bought were; their expansion into the booming west; and while the floods impacted this stock some months ago - I thought business might boom when rebuilding is underway. Long history as a dividend payer.


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## So_Cynical (15 August 2011)

jbocker said:


> Got into this stock at 1.20 last week and it almost immediately fell to 1.00. Has climbed back well and is now 1.40.




Yep i almost chocked on my corn flakes that morning when i saw it trading at a $1, had to slap myself to get a grip...i freed up some money late that afternoon but the SP had already bounced so my buy order never got filled.



> Dear Sir/Madam,
> 
> CommSec wish to confirm that your order was received at 2:56 PM (Sydney Time) on Tuesday, 9 August 2011 for Account ********.
> 
> You have asked us to buy **** shares in KSC at a price no higher than $1.030.


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## Pioupiou (22 December 2011)

Notice the recent buying by directors, Greg Boulton and Raymond Smith - the news within the castle cannot be too bad.


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## ADIOZ (17 February 2012)

I've been following and buying KSC for about a year. I found it to be very undervalue stock. Not sure why people are selling it.

At the moment, it is trading much below its book value. Therefore, it is undervalue by this account.

On the other hand, its RoA and RoE has been declining for years. Therefore, I believe, that this is a very competitive industry. If I can only hope 1 thing, I hope that the purchase of the Regal & Pacific company can reverse the declining in its RoA & RoE.

In the next year, there are 3 things I wish to see in its report. 1) It will not acquire any more company. Just focus on Regal & Pacific please. 2) Very good positive cash flow and use it for stock buyback and 3) an improvement in RoA & RoE.


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## tigerboi (17 February 2012)

I think KSC will see sub $1 again as the steel contracts they have been losing for them,
also DTM has poor management so dont be surprised if they off load DTM.


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## nulla nulla (17 February 2012)

Maybe they should consider approaching Korda Mentha and make a low ball bid for the assets of "Air Australia (Administrator Appointed)". They could expand into airfreight.


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## So_Cynical (17 February 2012)

ADIOZ said:


> In the next year, there are 3 things I wish to see in its report. 1) It will not acquire any more company. Just focus on Regal & Pacific please. 2) Very good positive cash flow and use it for stock buyback and 3) an improvement in RoA & RoE.




I concur with your comment.

-------------------------------

Transport is super competitive for sure, margins are slim but barriers to entry substantial, at some point in time the K&S share price will head back towards $2 and beyond, its just that that point in time seems a way off...we really need the growth and spending train to get moving again.


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## Pioupiou (8 March 2012)

*Greg buys again*

My recollection of the last performance announcement was that its prognosis was rather muted.  It gave the usual negative news of tough going in the eastern states, but it remained silent in respect to WA, which should be doing well.

Anyhow, Greg Boulton, who should know what KSC is worth, invested $26K in KSC, so that gives heart to we poor mushrooms.

Date of change -  28th February 2012
No. of securities held prior to change - 208,429
Number acquired - 20,000
Value/Consideration  - $1.30 per share - total $26,000.00
No. of securities held after change - 228,429

I have almost 30,000 KSC that I bought years ago at an average of $2.88, so I am behind big time.  I expect the SP will improve when KSC either winds back unprofitable business, or that business improves, plus, the WA business should do well.


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## So_Cynical (8 March 2012)

*Re: Greg buys again*



Pioupiou said:


> I have almost 30,000 KSC that I bought years ago at an average of $2.88, so I am behind big time.  I expect the SP will improve when KSC either winds back unprofitable business, or that business improves, plus, the WA business should do well.




My average is a bit less than $2.88 but im way behind too, only a matter of time till these sorts of business turn...i was surprised the KSC share price didn't take a hit today on the Scott transport speed limiter tampering, as reported on the news yesterday and again tonight.

Because of the links between Scott transport and KSC


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## McLovin (8 March 2012)

So_Cynical said:


> but barriers to entry substantial




Are there really though? Perhaps there are some scale advantages but are fixed costs significant compared to say, the airline industry?

Transport seems more like a typical market with no barriers to entry (margins are low as are roe roa). Efficiency is the only thing that matters.


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## So_Cynical (9 March 2012)

McLovin said:


> Are there really though? Perhaps there are some scale advantages but are fixed costs significant compared to say, the airline industry?
> 
> Transport seems more like a typical market with no barriers to entry (margins are low as are roe roa). Efficiency is the only thing that matters.




When i wrote that i was considering the obstacles a new start up would encounter...the fact that there are already many players in the industry with many decades of experience and relationships built on trust and reliability...the fact that with such small margins anyway there would seem to be little incentive for a new player to burn cash for years just to get to break even.

I think there are significant barriers to entry....i mean if you had 5 or 10 million bucks and wanted to start a business would you go out and buy 6 or 7 trucks, set up depots in 3 or 4 state capitals and take on 2 dozen or so employees?

For me scale and experience = efficiency


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## McLovin (9 March 2012)

So_Cynical said:


> When i wrote that i was considering the obstacles a new start up would encounter...the fact that there are already many players in the industry with many decades of experience and relationships built on trust and reliability...the fact that with such small margins anyway there would seem to be little incentive for a new player to burn cash for years just to get to break even.
> 
> I think there are significant barriers to entry....i mean if you had 5 or 10 million bucks and wanted to start a business would you go out and buy 6 or 7 trucks, set up depots in 3 or 4 state capitals and take on 2 dozen or so employees?
> 
> For me scale and experience = efficiency




I getcha now.

I tend to see barriers to entry as things that are difficult to replicate and which give the incumbent some advantage. Examples would include, customer preference, government licensing, high fixed costs (especially in a small $ value industry) etc. The things that you mentioned; relationships, trust, reliability, don't seem to be worth very much to the business. Mercedes-Benz/BMW/Audi all have the same problem, they have very well respected, trusted brands but they are unable to generate a competitive advantage with them.

To bring it back to a more relevant example, all those truck companies whose drivers speed (saw somehting about Scott on the news tonight), drive while drug affected to meet impossibly tight deadlines etc would indicate that there is very little in the way of competitive advantage or barriers to entry.


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## Ves (9 March 2012)

McLovin said:


> To bring it back to a more relevant example, all those truck companies whose drivers speed (saw somehting about Scott on the news tonight), drive while drug affected to meet impossibly tight deadlines etc would indicate that there is very little in the way of competitive advantage or barriers to entry.



 Adding to this the returns of logistics companies such as KSC, QUB and TOL all average around the high single figures to low teens in terms of return on capital over the last decade (obviously QUB hasn't been listed for this long). I don't know many other road-based companies that are listed, but AIO has never been fantastic either for comparison to a similar industry. Operating margins are also generally single figures.

Often high costs of entry provide an illusion that the industry has barriers to entry, when it is really the low profitability of the industry that keeps entrants at bay. Mature industries without real barriers to entry can go through long periods of contraction before the least efficient  players are forced out. Then new entrants may be encouraged because returns slowly improve and the war starts all over again.

Just remember, you as a share holder will never receive a return over the long-term that exceeds the return of capital of a company.


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## So_Cynical (5 May 2012)

*Re: Greg buys again*



So_Cynical said:


> *My average is a bit less than $2.88* but im way behind too, only a matter of time till these sorts of business turn...i was surprised the KSC share price didn't take a hit today on the Scott transport speed limiter tampering, as reported on the news yesterday and again tonight.
> 
> Because of the links between Scott transport and KSC




I picked up a few more KSC shares on the 23rd of March at $1.10 (and only now realised i didn't post) thinking i didn't want to let this second major dip get away from me like the first one did a few months before..so far the timing been perfect, brought my average price down to $1.76 and elevated KSC to my #4 portfolio stock by value.


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## Pioupiou (6 May 2012)

Nice move on Friday to close at $1.30.  I recently sold my private holding to my SMSF, which also held KSC, so there are now 30,732 shares in that portfolio.  I think KSC will improve, and it pays a reasonable dividend of 10c a year, so it suits an SMSF.

I wonder if the fact that 1st Fleet went into administration last week has anything to do with the renewed interest in KSC.  One man dead may be another man's bread.


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## Ves (6 May 2012)

Pioupiou said:


> I wonder if the fact that 1st Fleet went into administration last week has anything to do with the renewed interest in KSC.  One man dead may be another man's bread.



 I think if anything it just highlights how tough it is to be profitable in this industry over the long-term.


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## tigerboi (9 May 2012)

Ves said:


> I think if anything it just highlights how tough it is to be profitable in this industry over the long-term.




yes true... tough in the transport game...dominoes make 3 times npat than most transport companies do,as for first fleet...has always been a poorly run company notwithstanding the ceo put all the cash through the casino.

if it was me or the average joe blow...straight to the calaboose...100% ahole stephen brown will already have his $16m home & all the other ill gotten gains in his wifes name,seen it happen before with mcarthur express i luckily got out 3 weeks before it all went bad.

employers now leave it to the GEERS scheme to pay all the workers.

next company to run out of cash is lindsays brothers LAU supposedly only made $2.1m
last year with 200 prime movers,assets are quietly on the market...checkout cti logistics CLX based in perth good well run transport company...tb


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## Pioupiou (12 July 2012)

Pioupiou said:


> Nice move on Friday to close at $1.30.  I recently sold my private holding to my SMSF, which also held KSC, so there are now 30,732 shares in that portfolio.  I think KSC will improve, and it pays a reasonable dividend of 10c a year, so it suits an SMSF.
> 
> I wonder if the fact that 1st Fleet went into administration last week has anything to do with the renewed interest in KSC.  One man dead may be another man's bread.




Nice announcement of profit upgrade today (12/07/12), and the SP went up by over 4%, with no sellers within cooee of the SP at noon.  Directors were buying early in the year at prices just north of $1.20, which is often a good sign.


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## Pioupiou (22 August 2012)

Profit announcement today (22/08/2012).  Dividend up 1c to 11c a year.  NTA is $1.72.  I am happy to hold KSC for the dividend yield, although I am at least 50% down on paper in respect to capital loss.


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## McLovin (22 August 2012)

How long does a truck last on the road? I'm looking at their cash flow statement and if you figure that over the business cycle motor vehicle capex will approach depreciation then the dividend looks unsustainable and/or there will be a capital raising at some point. Unless the asset is written down to zero and still has a fair bit of life left in it.


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## So_Cynical (22 August 2012)

McLovin said:


> How long does a truck last on the road? I'm looking at their cash flow statement and if you figure that over the business cycle motor vehicle capex will approach depreciation then the dividend looks unsustainable and/or there will be a capital raising at some point. Unless the asset is written down to zero and still has a fair bit of life left in it.




I know that K&S actually sell some unwanted trucks and Trailers thur the K&S web site 

They are currently selling a 1990 model Western Star Prime mover...if they have had that from new then id say with some confidence that its been depreciated to $0 a long time ago.

http://ksfreighter.ihub.ninemsn.com..._Int32|1||p_StockPrice_Decimal|1&TabID=804306


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## McLovin (22 August 2012)

So_Cynical said:


> I know that K&S actually sell some unwanted trucks and Trailers thur the K&S web site
> 
> They are currently selling a 1990 model Western Star Prime mover...if they have had that from new then id say with some confidence that its been depreciated to $0 a long time ago.
> 
> http://ksfreighter.ihub.ninemsn.com..._Int32|1||p_StockPrice_Decimal|1&TabID=804306




Wow! There's an answer! Although they say they depreciate trucks at rates of between 5-40%. And they probably capitalise some of the major mechanical work that gets done.


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## jbocker (4 September 2012)

Realised i have held this stock for over 12 months, and on reflection been happy with its steadiness. Better off than when i bought in, and dividends have increased marginally. One of the very few stocks in my list that can have this claim to fame.
Read through their press release, and I am happy that my reasoning for buying (back then) has held true, - now that is a rarity!

When KSC gets the ES business  on track again then I will be real happy.
cheers
jb


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## tigerboi (4 September 2012)

McLovin said:


> Wow! There's an answer! Although they say they depreciate trucks at rates of between 5-40%. And they probably capitalise some of the major mechanical work that gets done.




that western star is an older local rigid which they use just for local pick up & delivery,they wouldnt

have much use for it these days,usually a local mud carter (tipper driver) will buy that & either put

a tipping body on it,id say it had a tautliner (curtains) on it & someone has smashed it up.

never buy a 2nd hand truck from a transport company...there is a good reason they want rid of it.

i am buying 2 new western stars & trailers after xmas & taking over the terms of an argosy & trailers

from a mate who wants to retire,my company is to be called TFL NATIONAL LOGISTICS based around

airds rd minto or narrellan or smeaton grange...after slater & gordon get me a nice pay out.

K& S need to off load DTM they dont perform well.

best place to buy trucks from are subbies that have gone out of business as many do as its not 
a viable business model to own the truck but pull someone elses trailers = just like flushing money
down the toilet.

if i could find a few late model trucks well priced then i may go that way but at the moment im going new.

cheers TB


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## So_Cynical (13 November 2012)

*Re: Greg buys again*



So_Cynical said:


> (5th-May-2012) I picked up a few more KSC shares on the 23rd of March at $1.10 (and only now realised i didn't post) thinking i didn't want to let this second major dip get away from me like the first one did a few months before..so far the timings been perfect, *brought my average price down to $1.76* and elevated KSC to my #4 portfolio stock by value.




KSC up 4.5% on today's announcement that half year on half year profit is expected to be up 25% to 30% 

http://www.asx.com.au/asxpdf/20121113/pdf/42b51235xwvgrj.pdf

For the first time in over 2 years my whole KSC position is now in profit...buying good businesses at cheap prices and continuing to do so has paid off again.

Just looking at my history with this stock, i have 12 parcels  with 5 of those parcels being dividend reinvestment, i took 2 large average downs at $1.56 and $1.10 that's what has turned this position around for me.


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## Country Lad (5 January 2013)

Been very gradual over the past 9 months or so.  Another break now and looks like it will go on with it.  

ff div at 5.8%.

Cheers
Country Lad


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## So_Cynical (31 January 2013)

So_Cynical said:


> (12th-April-2010) has announced a Share Purchase Plan at a reasonable discount, i figure $2.56 per share is a reasonable discount considering KSC has been going sideways between 2.70 and 3.00 for 6 months.






So_Cynical said:


> (April - 2011)In today at the crazy low price of $1.62 :cowboy:




Almost 3 years into this/these trade/s and finally completed today at $2.07 ~ total of 8 parcels sold, a combination of trades and dividend reinvestments, 4 winners and 4 losers, freed up a heap of cash and overall realised a trade profit of 7.14% reducing my average price per share held to $1.46 

Overall a good result thanks to aggressive bottom buying, 1 entry that fluked the bottom and 2 dividend reinvestments either side of that bottom at $1.12 and $1.14 ~ gross dividend yield going forward of 9.8% with the last 2 dividends factored forward...any increase of course would up that yield to over 10% 

What more could a long term, yield chasing, low cost entry and averaging contrarian ask for.

---


Yeah and KSC is still a great stock to own, great business, great growth industry, except now its getting expensive to buy into.


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## skc (31 January 2013)

So_Cynical said:


> Almost 3 years into this/these trade/s and finally completed today at $2.07 ~ total of 8 parcels sold, a combination of trades and dividend reinvestments, 4 winners and 4 losers, freed up a heap of cash and overall realised a trade profit of 7.14% reducing my average price per share held to $1.46
> 
> Overall a good result thanks to aggressive bottom buying, 1 entry that fluked the bottom and 2 dividend reinvestments either side of that bottom at $1.12 and $1.14 ~ gross dividend yield going forward of 9.8% with the last 2 dividends factored forward...any increase of course would up that yield to over 10%
> 
> What more could a long term, yield chasing, low cost entry and averaging contrarian ask for.




I guess you could have asked for a higher return than 7% in 3 years 

Or buy LAU today @ 18c which closed at 22c for a 22% return in one day...


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## Garpal Gumnut (1 February 2013)

So_Cynical said:


> Almost 3 years into this/these trade/s and finally completed today at $2.07 ~ total of 8 parcels sold, a combination of trades and dividend reinvestments, 4 winners and 4 losers, freed up a heap of cash and overall realised a trade profit of 7.14% reducing my average price per share held to $1.46
> 
> Overall a good result thanks to aggressive bottom buying, 1 entry that fluked the bottom and 2 dividend reinvestments either side of that bottom at $1.12 and $1.14 ~ gross dividend yield going forward of 9.8% with the last 2 dividends factored forward...any increase of course would up that yield to over 10%
> 
> ...




Good one sc

And it is still in a classical uptrend.







gg


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## So_Cynical (1 February 2013)

skc said:


> I guess you could have asked for a higher return than 7% in 3 years




I was 45% down 11 months ago, sitting on a loss of over 3K .. 7% is brilliant! .. add to that around 16% gross dividend yield over the 3 years.

Big picture, i have 2 exits in this stock 11.45% in 2009 and 7.14% in 2013, i could of sold some of the cheaper parcels and realised some more profit, but im seriously trying not to get a tax bill this year and want to keep my profit under 8K with more than half of that getting CGT discounting, so had to sell the older parcels. 

Besides my open KSC profit is now 44.26% i love how averaging down can leave you with such cheap stocks when the market rallys...a 5 year stratagy coming good...open portfolio profit now 19.13%



skc said:


> Or buy LAU today @ 18c which closed at 22c for a 22% return in one day...




LAU is a great business, wanted it and watched for a long time...very thinly traded.

how many LAU trades actually went through today?


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## Country Lad (1 February 2013)

So_Cynical said:


> ..............how many LAU trades actually went through today?




Best not to take this one off topic.

https://www.aussiestockforums.com/forums/showthread.php?t=20287

Cheers
Country Lad


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## So_Cynical (8 April 2014)

From the SCC Thread



System said:


> On April 7th, 2014, Scott Corporation Limited (SCC) was removed from the ASX's official list following completion of the compulsory acquisition process by K & S Corporation Limited.




Scott is a good acquisition for K&S, broadening their National business into bulk liquids, explosives and dangerous goods, fair to say that Chemtrans is the industry leader in this field...a 5 depot fuel tanker fleet in central, west and north QLD as well.

http://www.scottcorp.com.au/


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## jbocker (8 March 2015)

Some good acquisitions over the last 12 months. I was reading around a little about Allan Scott the original owner of Scott's Transport, a Mt Gambier company bought rival company K&S Freighters (in the same town) and floated it on the ASX. http://en.wikipedia.org/wiki/Allan_Scott_(businessman)

So I guess KSC had a very good understanding of Scott's transport when it bought it out!

Adding Northern Territory Freight Services is interesting. It now has confirms good north-south transport corridors East Coast, in recent years the West Coast and now Central Australia.
I like it.


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## galumay (8 March 2015)

jbocker said:


> Some good acquisitions over the last 12 months. I was reading around a little about Allan Scott the original owner of Scott's Transport, a Mt Gambier company bought rival company K&S Freighters (in the same town) and floated it on the ASX. http://en.wikipedia.org/wiki/Allan_Scott_(businessman)
> 
> So I guess KSC had a very good understanding of Scott's transport when it bought it out!
> 
> ...




I had a look at this company recently, I remembered it from when I lived in western victoria many years ago and I knew Allan Scott and both Scotts and K&S were the 2 big names in the area.

Sadly its not doing so well as a public company though and it soon dropped off my watch list. They have had ongoing issues with fraud as well, with a second major one uncovered this year.


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## So_Cynical (17 December 2015)

Linfox moving to 8.46% would explain the recent upswing in the SP, however the short sharp fall of a couple of weeks ago remains a mystery...Linfox ann below.

http://www.asx.com.au/asxpdf/20151217/pdf/433w2vqfn50563.pdf

I imagine that a takeover would be out of the question ACCC wise?


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## jbocker (13 November 2018)

https://www.asx.com.au/asxpdf/20181113/pdf/440759ggk2fdxt.pdf
KSC to receive $25M from Aurizon. That's a lot better than they hoped last August of at least $16.1M.
But what does this mean...
".. majority of the Settlement was recognised as an accounting gain in the year ended 30 June 2018."

Is it money in the bank??


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## jbocker (23 July 2019)

The gradual increase over the last 6 to 12 months is somewhat opposite to what I was expecting in the current economy.  Difficult to predict a real trend as the stock trade is reasonably low volume. Is trucking enjoying a positive spin in the current economy / market?


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## jbocker (23 July 2019)

I meant to paste this with my previous comment.


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## jbocker (30 August 2019)

It has been scarce this century KSC has not paid a dividend for 1/2 and full yearly. None paid today after a considerable drop in profit amongst other things to corresponding period 2018. Share price has still held well (so far).
https://www.asx.com.au/asxpdf/20190830/pdf/4481zgkh7ls4m1.pdf


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## barney (5 September 2019)

jbocker said:


> It has been scarce this century KSC has not paid a dividend for 1/2 and full yearly. None paid today after a considerable drop in profit amongst other things to corresponding period 2018. Share price has still held well (so far).




On the numbers presented and management's admission they can't give any short term earnings guidance for next year, it looks like the past 6 years of ranging between $1.20-$1.85 is set to continue.


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## So_Cynical (5 September 2019)

KSC going nowhere with the economy flat, growth, interest rates and demand flatlining...i sold out a while back.


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## jbocker (13 July 2020)

I wonder how the virus affects the trucking business at the moment. KSC is at a yearly low currently.
Trucking I thought is still viable and an accepted border crosser.


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## galumay (14 July 2020)

I think its just a tough, low margin business to be in, @jbocker. Trucking probably having little impact from Covid, but that doesn't make KSC a good business!


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## jbocker (17 July 2020)

galumay said:


> I think its just a tough, low margin business to be in, @jbocker. Trucking probably having little impact from Covid, but that doesn't make KSC a good business!



OK I understand. What I don't get is this announcement this morning. TO ME it reads as really good news, but is it really? It hasn't gone nuts in share price. Am I reading more into it (highly likely ) or is just thinly traded, tightly held, on no-ones radar … or what?
https://www.asx.com.au/asxpdf/20200716/pdf/44kljh7sx1x855.pdf


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## So_Cynical (17 July 2020)

jbocker said:


> OK I understand. What I don't get is this announcement this morning. TO ME it reads as really good news, but is it really? It hasn't gone nuts in share price. Am I reading more into it (highly likely )




The 12.4 million in jobkeeper payments dont look good and the increased profit is mostly due to successful cost cutting and control.


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## jbocker (17 July 2020)

So_Cynical said:


> The 12.4 million in jobkeeper payments dont look good and the increased profit is mostly due to successful cost cutting and control.



So the job keeper covered the wages to some extent which left money on the table for the business.
Thanks SC.


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## galumay (18 July 2020)

Yep, nearly all the profit was simply the Jobkeeper payments, another poor result in reality. Its the first thing I am checking with each release of EOFY financials, a lot of businesses will have NPAT distorted by Jobkeeper.


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## divs4ever (14 July 2022)

14 July 2022

K&S Corporation Limited Earnings Guidance for FY22

K&S Corporation Limited (ASX: KSC) provides the following earnings guidance for the year ended 30 June
2022.
Based on unaudited management accounts, K&S Corporation currently anticipates that the underlying profit
before tax for the year ended 30 June 2022 will be between $20.7 million and $21.7 million and the statutory
profit before tax will be between $22.5 million and $23.5 million.
K&S Corporation expects to announce its statutory results for the year ended 30 June 2022 on 24 August
2022.
================================================================================================



i hold KSC


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