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||Market Cap (m)
Real-Time news about Knowledge Sppt (London Stock Exchange): 0 recent articles
|the jitters: The PRU sold 2.9m so where did the other 2m shares come from?? Might explain the rise in the share price over recent days. Its always nice to see a fund buying more than the balancing selling fund ;o)
|the jitters: These kind of situations often follow a similar path. Look at RSFT, the share price was on its knees almost up to the day micromuse put in their offer. Now you dont think the bosses at micromuse just woke up that morning and said "I am bored today, what can we do? I know, lets go and buy a competitor".
Due diligence and various conversations etc will have left a "whiff trail" half the city could have followed, but the share price is held low (perhaps artificially) to allow the boys in the know and the movers and shakers to get in.
KSS will be the same (if a bid emerges) it will apparently come as a bolt from the blue, but a quick look through the trade logs will reveal the tell tail signs.......last weeks hefty volumes and big swapsy trades suggest the beginning of "something".
Phil (in cynic mood today)|
|ghhghh: Operating costs and cash burn likely to be similar because sod all revenue!
This is an attraction of KSS, revenues can't get any worse than zero and therefore low risk.
They have masses of cash (about 30p a share) and a business that either has to start generating some decent revenue or must be closed/sold. Either will benefit the share price.
The only question is how long will management wait before acting.
The two imponderables are what does Prof Singh's estate want to do with his 40% and now that they have no ceo and an underperforming retail division (one assumes the retail division has screwed up big time under Mushin, hence his exit) is this the logical time to seek offers for the company.
Someone mentioned Music Choice as another cash rich company. Down today to 9p versus about 18p net cash but the real attraction of MUS is its amazing shareholder base. Sky own 36%, Time Warner 16%, Sony 8% and I think Microsoft and Motorola also on board. Sky, Time Warner and Sony have Board representation.
Name me one other small company (about £11m cap) with so much cash and such powerful connections.|
|ghhghh: I've looked at Controlp and agree could be cheap with cash around £2.5m TO £3m, a property worth say around £1m, a £3.2m market cap and supposedly now profitable.
The worry is that next announcement needs to be good, they need to confirm in profits or shares could dive.
KSS imo safer because business revenue so lousy market expectations low. If business results stay lousy a cashback or takeover looks more likey, both at substantial increase on current share price.
Any paper bid would have to be over the cash, ie over 30p.|
|analyst: Kavanagh is tipping KSS today in the Sunday Times.
Price is right for technology minnow
ONE of the stock market's stars of the future could well be Knowledge Support Systems (KSS). It is a relative newcomer, listing only in March, but its share price has performed well, especially given the turbulence in the technology sector.
The firm designs software that is unique, and certainly a new concept for the stock market. Benefits to businesses such as retailers, telecoms companies and petrol stations could be huge. And the shares look a high-quality buy for the longer term.
The software enables organisations to achieve price optimisation and has been designed by two professors from the University of Manchester's Institute of Science and Technology. So what is price optimisation?
First, it is essential to understand how a retailer sets prices. Typically, this is done by taking the cost of the goods from the supplier, adding a profit margin and checking the price with competitors. The retailer then hopes the price drives the required levels of sales.
This method of pricing has worked for years. But as competition increases, every organisation is looking at how to maintain or increase margins. Software developed by (KSS) looks a compelling tool and, in trials, has achieved gross profit margin gains of more than 2%. This could be worth hundreds of million of pounds to some of the big supermarkets.
The KSS software takes a new approach to pricing. First, it assimilates vast quantities of data to set prices. This information will include product information (a typical supermarket has more than 40,000 products); competitors' pricing; pricing strategy (does the group aim to be the cheapest provider, for example); and target market share.
Once created, the system is monitored on a weekly basis to track how closely it is working to budget. If changes need to be made, they can be done simply. Soon, the aim is that the pricing can work accurately with the company's own forecast budget.
KSS has developed core areas of competency for the following sectors: telecoms, financial services, e-commerce, petrol retailers, convenience stores and pubs.
The company is in the process of recruiting senior managers and KSS is already winning orders.
It recently announced that it had signed an agreement with a multinational retailer who has chosen to remain anonymous.
Valuing a business such as KSS is key. With the shares at 348p, up 54% from the placing price in March, the company is valued at £250m but it still has a relatively low level of sales because it has been focusing on developing the infrastructure.
However, the company's broker, Investec Henderson Crosthwaite, is predicting sales of £6m for this year rising to £16m and £28m over the next couple of years.
In the latter year, this will allow profits of about £10m and value the company on a price-earnings ratio of about 33. This would be cheap for a company only scratching the surface of what could become an important global market where barriers to entry are high.|
Knowledge Sppt share price data is direct from the London Stock Exchange