Sunday 13 May 2007

An investers thoughts....

Reviewing my investments this week end and by coincidence, my profit/loss on EKT is 0p today after 2 years...Now some would say that is a bad investment...but then they, i bet, have held investments that have gone tits up over similar periods of time....and this has not.The fact is, huge profits and loses are invariable linked to high risk and in my opinion, EKT has shown its self to be very low risk and, considering the ups and downs of the markets over the last few years, it has remained a safe place to leave some cash.The downside has been tested with market slumps and a falling dollar...a difficult period in any companies year must be the closing of a production plant and the opening of a new one but this too has been carried out with no adverse affect on production or delivery. Cost have been cut and cash generated has been shrewdly invested to generate more cash and further diversify the core business.The management have not gone the risky, boom/bust route in an effort to attract the traders and rocket the SP...instead they have steadily cut cost with the move abroad for production and assembly, expanded the core business at a sustainable rate with acquisitions(production and property)and opened up new possibility's with far Eastern customers..The upside is we now have money invested in a proven stable company, an expanding company, and a company that has a proven track record of reliability for the investor when times are not so good in the markets.#It would have been nice to buy in now rather than 2 years ago but if we had a crystal ball to tell us these things...well wouldn't life be simple..As it is i think that we will hear from EKT in the next month and i think It will be good news ! ..sure if you want to gamble and take bigger risks you could make quick bucks else where if you are lucky ;-) but i think the proportional, likelihood of making good money here for very little risk is a better bet. With that in mind, I will be adding to my holding here :-)

2 comments:

Ron Kleet said...

Over 500,000 shares traded today so it looks like investors are buying on prospects of more good news in results.You wont have to wait long for your investment to take off spec7.

Spec7 said...
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