The excuses are genuine in that if one carts steel around, and the steel monger's business shrinks, then the carter's business will shrink, and likewise for similar KSC customers - if their business slumps, it hurts KSC.
The trick it seems is to find customers whose products are less prone to boom-slump conditions - e.g., food and drink, or to have enough variety to have something booming while other things recede. This is what I read into some of the stuff written about Lindsay Fox - see:
Of course, because Lindsay Fox's business is not listed, we cannot actually check its metrics. Also, the two businesses have different profiles, so comparison is not easy.
Anyhow, I presume KSC's MD, Legh Winser, knows all this, and is on course to fix the company (slump-proof KSC). The fact that Mr Windser invested $862,500 to buy 528,000 KSC shares in March and April 2011, suggests to me that he thinks KSC will come good. I hold, and trust that he does just that.
KSC Price at posting:
$1.39 Sentiment: Hold Disclosure: Held
