What, in your view, are the factors contributing to this underperformance and are these issues transitory? You have recommended to hold on to this stock due to zero/low debts, strong customer base and its highly successful/unique programs for the industry. What are the catalysts and the basis of your recommendation, despite stock's continued poor performance ? There is a cost to Capital for an investor and may be, it's time to move on and look for better opportunities and more efficient deployment of funds.
Thank You
KXS is relatively small, doesn't trade so well, and is not cheap. It does not get that much attention. So, when there is no news, it often will see some selling. There has been some insider selling which may worry some investors. The company has not had a press released since mid November (a new contract). But this does not make it a bad stock. It is not as sexy as other tech stocks, and its small size may also hold back some interest (DSG is about 3X as big). Cash continues to grow, and EPS is expected to go from 68c in 2022 to $2.06 this year. This is our reason to like it, in addition to its other qualities. The stock is up 10X since its IPO in 2014. It's clearly not perfect, but taking a wider view makes it look better, certainly. It also has big earnings leverage to single new contracts, and more leverage as existing customers add seats. EPS last quarter beat estimates by 68%. Recent shipping issues in the middle East may raise the importance of supply chain management again.