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Kontrol Technologies Corp N.KNR

Alternate Symbol(s):  KNRLF

Kontrol Technologies Corp. is a provider of energy management, continuous air quality and emission solutions to commercial and industrial consumers. It delivers building intelligence through the Internet of things (IoT), software and cloud technology as well as project integration. Its smart technology is deployed to customers through a cloud-based interface accessible on desktops and mobile devices. It collects real-time and historical data using IoT sensors and direct connection to industrial control systems, bringing various sources of asset performance data into the cloud where smart-learning software is applied to optimize performance. The Company, through CEM Specialties Inc., offers turn-key emission monitoring equipment, integration design, manufacturing, service, repairs, and on-site performance certification testing. It offers building heating, ventilation, and air conditioning integration, automation and retrofits to enhance the energy efficiency of buildings and facilities.


NEO:KNR - Post by User

Post by Microcapkidon Nov 18, 2020 7:31pm
832 Views
Post# 31927701

A moment of rationality

A moment of rationality

I feel that it is important to take a moment and rationalize the situation.

-this is a business that, in 5 years, has grown from $1 million in revenue to $16 million in revenue. It has won business from blue chip names and has grown immensely in the last 5 years. If left untouched for a few more years, the core business alone will make this business a takeout target of the likes of Honeywell or Johnsons controls. 


-at the current price you get a great core business with the BioCloud component as a "free option". This far, Paul and the team have executed on every milestone and have done so within their specified time frame. The last  and most important milestone is sales. I would very much imagine that the market for BioCloud is >$0. I think you would be hard pressed to find someone who would make a compelling argument that BioCloud is worthless, even in a world without Covid-19. Moving forward the world is not aware that virus outbreaks/pandemics/etc are costly in terms of human lives and livelihoods. The upside for this technology is indeed immense, but taper your expectations of getting a "10 bagger" in a month or two. Simple compound growth calculations demonstrate that to double your money in 3 years you would have to grow your capital at 26% per year, beating the likes of Warren buffet. 


-Rome wasn't built in a day and neither will this story. The reality is that next year and each year after that, Kontrol's core business grows. Day to day and week to week we have gotten closer to the BioCloud rollout as well. In fact, the ground work is totally complete for sales. The final question on that front is whether management can execute and whether the market for the tech exists. Considering management has executed on every milestone to date, and the tech solves a real world problem inside and outside of the context of Covid, I think we have a bright future ahead of us. Whether that means we are "up" tomorrow or not I don't know.

-For context, I have bought and held this stock prior to the BioCloud hype at decently less than $1 per share and have a firm belief that this company grows more valuable in time with or without BioCloud.

-And some food for thought: Don't you wish you could've bought Amazon in the 90s? Well, on your way to billions, you would've endured an 80% drawdown. Twice. Let that sink in. How about Netflix? Netflix drew down 25% in a single day. 4 separate times. 


*the easy part of identifying true multibaggers that go on to 10, 20, 30, or over 100x is finding a great company that grows its top and bottom line aggressively and executes on its promises and objectives. The hard part is holding. Pretty sure a lot people are feeling the difficulty of the second part currently. 

 


 


 

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