ASX:KLS
Kelsian Group Ltd
Investment Summary
The fund managers believe that Kelsian Group Ltd's recent share price decline of 18.9% in February was an overreaction, considering there was only a 2% reduction in consensus forecast earnings. In their opinion, despite stable expectations from the company, market skepticism remains due to past management issues. They note that the company has initiated a capital recycling program aimed at improving returns, which they see as a positive move. However, the fund managers emphasize that Kelsian must provide tangible results to regain investor confidence and warrant a more favorable market response.
Commentary From The Managers
Blackwattle Investment Partners
28 Feb 2025
$3.10
- Kelsian Group experienced a significant decline of 18.9% in February.
- Consensus forecast earnings were only reduced by 2%, with no change to the company's own expectations.
- This reaction is reminiscent of the price movement seen with Integral Diagnostics.
- Blackwattle Investment Partners initiated their position in the last six months as the company’s earnings troughed.
- The company has started a capital recycling program aimed at improving returns.
- Due to previous management slip-ups, the market remains hesitant to anticipate improvements too soon.
- The company must demonstrate tangible improvements to regain market confidence.
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