Monday, November 15, 2010

Kathmandu Holdings Ltd: The First Year

Kathmandu Holding Ltd [KMD.NZX] have had a particularly bad first year as a listed company.

Profit levels and prospectus promises have failed to hit the mark and the share price has dropped by 22% to $1.67 since its November 12 2009 debut at NZ$2.13 on the NZX.

The prospects for the company, like many other retailers, do not look good for 2011 but for KMD look quite frightful considering its high debt levels and the prospect of more spending on new stores as the company expands to grow the company quickly and not break more IPO promises.

On the share price front, $1.67 is not far off the 52 week low of $1.54 set in September 2010 but of course doesn't really show any identifiable trading pattern yet after only one year. The share price has been much weaker over the last month and we should expect a further drop in January if Christmas sales don't deliver.

Might then be time for taking another look at the fundamentals based on a much lower share price.

Happy Trading.

Kathmandu @ Share Investor

Kathmandu Holdings Ltd: 2010 full year profit analysis
Chart of the Day: Kathmandu Holdings Ltd
Kathmandu Holdings: Market Update Misleads
Kathmandu's 2011 Results Under Pressure from Jan Cameron
Kathmandu IPO: Prospectus Analysis
Kathmandu IPO: Jan Cameron lands a blow to IPO
Kathmandu IPO: What is it worth?
Kathmandu IPO: Retail Interest High
Kathmandu IPO: A tough mountain to climb
Kathmandu No.1 but IPO should get the Bullet
Download the detailed Kathmandu Value Cruncher Report - Requires free registration at Share Investor Forum to download
Download Kathmandu IPO Prospectus
KMD Investor Presentation to Macquarie

Discuss Kathmandu @ Share Investor Forum
Download KMD Company Reports

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c Share Investor 2010

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