Prejudice towards small capitalisation companies, lack of share tradability and nervousness about the long-term commitment of its major shareholder have led to Kgmedia, one of the most cash rewarding of the listed media companies, being rated below its peers. Kgmedia shares are trading at 360cps, which is a significant improvement over the 260cps 12 months ago and a faster rate of growth than the rest of the media sector. The shares show a price to earnings ratio of only 6.8 times, which is below Johncom's 9.8 times and Caxton's 10 times. Primedia, the group most akin to Kgmedia, has a negative price to earnings ratio, which makes comparisons impossible. Despite consistent performance, generous dividend payments and potential for growth, Kgmedia's shares are reined in by the lack of liquidity. The last annual report shows only 8.9% of the issued shares traded in the 2002 financial year.
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