...no offense, but the 'buy under nine" seems like a bunch of puffery to me. Sure, we'd all like to buy in the eights. People have been saying they'd buy under nine for a while. Yes, if the stock goes down 25% into the eights near tangible book, I'd buy there too. So what.
KTCC's reliance on several large accounts has really smacked them in the behind. And those two customers still account for near 40% of KTCC's business....so lots of room for downside should they decide to cut back.
I also didnt think the CC was anything special. Is it confidence or a lack of concern about recent underperformance and challenged forecasting abilities.
KTCC has drastically outperformed their sector over the past five years, even with the recent downturn:
Their management has done a good job over these years. But they need to get back on track.
For me, "Buy under Nine..." was just short hand for buy at tangible book. I can't think of a single circumstance where I lost money buying a profitable company at or below (or even slightly above) TBV.