K3 Business Technology Share Discussion Threads

[interceptor2] 16/12/2010 19:37

The software sector has an average per of 16.2 against a per of 7.5 for KBT, so a price target of 240p would still only give a per of 10.4. Canaccord have a price target of 215p which gives a per of 9.3.

cfro = As you mentioned on the Zulu thread about future takeover interest, it wouldn't surprise me with the increased amount of activity recently. I have had two undervalued companies I hold taken over recently.

And with so much talk about the benefits of cloud computing, with has been highlighted even more now with cyber attacks on large company websites last week. Then KBT could easily attract some attention.

Hopefully not yet though, lets see a higher valuation first.

Regards ic2........

[cfro] 16/12/2010 18:13

Yes very pleasing indeed interceptor2, and many thanks for bringing this super little share to my attention on the wonderfull Zulu board.

I make the PE still only 7.5......

[interceptor2] 16/12/2010 17:40

Very pleasing move today to 186p, on much higher volume of 71k against average of 25k. Could have been tipped somewhere, or maybe just MMs are a little light of stock after the heavy buying a week or so back.

Either way still further to go from here, still only on a per of 8 and 7 for a company who benefit from cloud computing.

Regards..........

[spaceparallax] 16/12/2010 10:09

Lovely, strange the way this happens sometimes at XD.

[interceptor2] 16/12/2010 09:38

Certainly coming to life today.

A 7p advance to 178p on modest 11k buys and 6 transactions, KBT starting to be noticed now?

[spaceparallax] 15/12/2010 15:57

Coming to life again.

[interceptor2] 08/12/2010 14:30

Yes and strong buying again. 192p is the historic high from October 2007, and is the last break out target left now, before we can enter blue sky.

Still only on a per of 7.2 and 6.5.

Regards......

[spaceparallax] 08/12/2010 14:23

a few trades going through tipping the 171p - could see further rises here, perhaps even 180+ by Xmas.

[spaceparallax] 08/12/2010 13:36

On the move again

[interceptor2] 07/12/2010 18:45

Good to see you both here, I haven't read the i.c article but it must have been very positive to have caused so much buying.

I think KBT are in a sweet spot at the moment with cloud computing, and with some very shrewd acquisitions in recent years which should accelerate growth.

Regards.........

[cfro] 07/12/2010 18:21

Hi interceptor2.

I bought an initial stake in KBT this morning @£1.67. Had it on my watchlist for a while after you mentioned it on the excellent Zulu thread, but was also reading my Chronic Investor at the weekend which finally persuaded me. This has oddles of upside.

[interceptor2] 07/12/2010 11:29

And the strong volume continues today. Since the start of the share price recovery in 2009, each time we have seen a break out it has been very strong, with this one following the same path.

I couldn't resist a small top up today at 167p, because they are still looking undervalued on fundamentals.imo.

Regards........

[saucepan] 07/12/2010 11:28

Hi Folks; joined you long today

[spaceparallax] 07/12/2010 09:30

Thanks Eagle Eye, I had seen that and was wondering more about the longer term bottom line effect - a rhetorical question at this stage.

Good to see the share price continuing its upward journey.

[eagle eye] 06/12/2010 20:43

spaceparallex,
K3's managed services business will more than double in turnover following this acquisition. K3's managed hosting business Digimax can be sold into Panacea's customer base, a product that has not been previously offered to their customers. Panacea's margins of around 6% leave scope for improvement as duplicated costs are removed. The acquisition was purchased on a PSR of less than 0.25, which look very good value and earnings for 2012 have been upgraded. This may look a boring business, but I believe management have plans to build K3 into a much larger business than it is now. Any acquisition will bring something to the table as I know management will not buy turnover just for the sake of it. I am a shareholder in K3, and have been for about 18 months.
Hope this helps,
Cheers
Eagle Eye

[spaceparallax] 06/12/2010 19:56

I wonder what synergies the recent acquisition will bring?

[interceptor2] 06/12/2010 19:40

Canaccord do have a 215p price target, which would give a per of 9.1 and 8.1, so not that demanding. With a trading statement due in the third week in January, and the exciting developments in cloud computing, I expect to see forecasts increased throughout 2011.

I haven't read the i.c article, but judging by the very large amount of PIs buying today, it must have been very bullish. An i.c article doesn't normally generate this much buying in my experience.

Regards ic2.......

[eagle eye] 06/12/2010 17:36

Hi All,
I haven't seen the IC article, but the target of 270p equates to a prospective PER of around 10 six months out. EPS forecasts are around the 26.5p mark to June 2012. A prospective PER of 8 is less demanding and still gives rise to a price target of 212p.
Investors are waking up to the fact that double digit organic growth is worth more that a miserly prospective PER of six 18 months out. Management continues to deliver here and cashflow has been consistently good.
Cheers
Eagle Eye

[spaceparallax] 06/12/2010 11:10

Looking good.

[interceptor2] 06/12/2010 09:34

Thanks Steg, I thought there must have been a mention somewhere.

80% = 270p I think this is possible within a year.

Regards....

[stegrego] 06/12/2010 09:31

I flicked through IC in the shop.
Im sure it said something like 80% upside for this in its tip.
Hence the buying today.

[interceptor2] 06/12/2010 09:24

Strong break up today on healthy buying volume.

[angler] 04/12/2010 18:18

If you visit KBT's web site/Investors Relations you will be able to access Caanaccord's 18/11/10update. Indeed, they do update the target price, to 215p.

[nellie1973] 04/12/2010 09:01

Tipped in press

[interceptor2] 03/12/2010 23:39

Tipped as a buy in Investors Chronicle today, unfortunately I'm not a subscriber so can only access the Bull and Bear points below.

Regards.........

BULL POINTS:

■ Record new business wins last year

■ Scope to shift clients to SaaS model

■ Acquisition firepower

■ Canaccord price target implies 45% upside

BEAR POINTS:

■ Some clients slow to adopt SaaS

■ Token dividend